Portland, Maine, USA, 03 September 2008 -- (MARKET WIRE) -- Katahdin Paper Company LLC ceased operation of its 180,000 ton per year supercalendered (SC) paper machine in Millinocket, Maine, on 02 September 2008. Orderly shutdown procedures are being completed to ensure that an efficient restart can be achieved. Employees are also completing the necessary steps to protect the manufacturing assets and related support systems through the winter period.

The company reports continuing progress on the potential to replace oil with biomass as the source for generating the steam energy required for the paper manufacturing process. Further information related to this project will be released when it becomes available.

Katahdin Paper Company is a leading North American producer of high value directory and SC-A groundwood papers. The company has operations in Millinocket and East Millinocket, Maine.