Neenah Paper to Further Consolidate Fine Paper Operations

    ALPHARETTA, Ga., June 13 /CNW/ -- Neenah Paper (NYSE:   NP) today announced
plans to permanently close its fine paper mill located in Urbana, Ohio. The
mill, with capacity of approximately 39,000 tons per year, was acquired by the
company with the purchase of Fox River Paper in March 2007. Operations at the
mill will be phased out in an orderly manner over the next twelve months. With
the shutdown of the Urbana mill and the previous closure of the Housatonic,
Massachusetts mill, the company is maximizing cost efficiencies by shifting
fine paper manufacturing to utilize existing available capacity at the
company's other high quality mills.
    "This decision follows a thorough analysis of how best to optimize our
manufacturing footprint following the Fox River purchase. Closing the Urbana
mill allows us further to improve costs and margins and the timeline will
ensure we seamlessly continue to serve the needs of our customers," said Sean
Erwin, Chairman and Chief Executive Officer. "We realize this will result in
hardship for our employees at Urbana and their local community and will be
working to assist them through this difficult transition."
    The company said it expected to incur one-time cash costs of
approximately four million dollars for severances and other charges related to
the Urbana closure and that savings would be realized through the elimination
of fixed costs at the site.

    About Neenah Paper, Inc.
    Neenah Paper manufactures and distributes a wide range of premium and
specialty paper grades, with well-known brands such as CLASSIC(R),
Gessner(R) and varitess(R). The company also produces and sells bleached pulp,
primarily for use in the manufacture of tissue and writing papers. Neenah
Paper is based in Alpharetta, Georgia, and has paper manufacturing operations
in the United States and Germany, and a pulp mill and related timberlands in
Nova Scotia, Canada. Additional information about Neenah Paper can be found at
the company's web site at

    Cautionary Note Regarding Forward-Looking Statements
    Certain statements in this press release may constitute "forward-looking"
statements as defined in Section 27A of the Securities Act of 1933 (the
"Securities Act"), Section 21E of the Securities Exchange Act of 1934 (the
"Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the
"PSLRA"), or in releases made by the Securities and Exchange Commission, all
as may be amended from time to time. Statements contained in this press
release that are not historical facts may be forward-looking statements within
the meaning of the PSLRA. Any such forward-looking statements reflect our
beliefs and assumptions and are based on information currently available to us
and are subject to risks and uncertainties that could cause actual results to
differ materially including, but not limited to, changes in U.S./Canadian
dollar, U.S./Euro and other currency exchange rates, changes in pulp prices,
the cost or availability of raw materials, unanticipated expenditures related
to the cost of compliance with environmental and other governmental
regulations, the ability of the company to realize anticipated cost savings,
and the successful integrations of the former Fox River business and Neenah
Germany operations. Forward-looking statements are only predictions and
involve known and unknown risks, uncertainties and other factors that may
cause our actual results, performance or achievements, or industry results, to
be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. We undertake no
obligation to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise.  These cautionary
statements are being made pursuant to the Securities Act, the Exchange Act and
the PSLRA with the intention of obtaining the benefits of the "safe harbor"
provisions of such laws. Neenah Paper, Inc. cautions investors that any
forward-looking statements we make are not guarantees or indicative of future

For further information:

For further information: Bill McCarthy, Vice President - Financial 
Analysis and Investor Relations of Neenah Paper, Inc., +1-678-518-3278 Web

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