ALPHARETTA, Ga., June 24 /PRNewswire-FirstCall/ -- Neenah Paper, Inc. (NYSE: NP) announced today that it had completed the sale of its Pictou pulp mill to Northern Pulp Nova Scotia Corporation (Northern Pulp), a new operating company of Atlas Holdings LLC (Atlas) and Blue Wolf Capital Management LLC (Blue Wolf). The intended transaction was originally communicated in a press release on May 15, 2008; and terms of the sale are consistent with this earlier release.

As part of the agreement, Neenah Paper paid an initial $1.8 million to Northern Pulp at closing. A second and final payment of $10 million will be made in the third quarter. In return, Northern Pulp has assumed all assets and liabilities associated with the Pictou operations, as well as existing customer contracts, supply agreements, labor agreements and pension obligations. As previously indicated, the transaction is expected to be significantly cash positive to Neenah Paper as a result of tax benefits that would be realized over the next one to three years.

Following this sale, Neenah Paper will become a pure premium paper and specialty products company and no longer own any pulp mills. The company will continue to own 500,000 acres of timberlands in Nova Scotia and has announced its intent to sell these timberlands within the next 12 months.

About Neenah Paper, Inc.

Neenah Paper is a leading global manufacturer of premium, performance- based papers and specialty products used in a variety of applications including filtration, printing and writing, and as backing and component materials for many specialized industrial and consumer applications. Products are marketed under well-known brands such as CLASSIC(R), ENVIRONMENT(R), STARWHITE(R), Gessner(R), JET-PRO(R) SofStretch(TM) and varitess(R). Based in Alpharetta, Georgia, the company has paper manufacturing operations in the United States and Germany and approximately 500,000 acres of timberlands in Nova Scotia, Canada. Additional information about Neenah Paper can be found at the company's web site, www.neenah.com .

About Northern Pulp Nova Scotia Corporation

Northern Pulp Nova Scotia Corporation is a new operating company of Atlas Holdings LLC and Blue Wolf Capital Management LLC to own and operate the Pictou pulp mill. Northern Pulp will be owned by Blue Wolf and Atlas, experienced operators of industrial facilities throughout North America. Northern Pulp Nova Scotia Corporation can be contacted through Caroline Luz at Owen Blicksilver Public Relations by calling 203-656-2829 or via e-mail at caroline@blicksilverpr.com.

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, the cost or availability of raw materials, changes in U.S./Euro and other currency exchange rates, unanticipated expenditures related to the cost of compliance with environmental and other governmental regulations, and the ability of the company to realize anticipated cost savings and benefits from 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 performance.

SOURCE
Neenah Paper, Inc.

CONTACT:
Bill McCarthy, Vice President - Financial Analysis and Investor Relations, Neenah Paper, Inc., +1-678-518-3278