York, Pennsylvania, USA, 17 December 2009 – Glatfelter (NYSE: GLT), today announced that the United States District Court for the Eastern District of Wisconsin issued an opinion and order on several pending motions in the case captioned Appleton Papers Inc. v. George A. Whiting Paper Co., No. 2:08-cv-16 (E.D. Wis.), including the granting of motions for summary judgment by Glatfelter and the other defendants and the denial of motions for summary judgment by the plaintiffs (the Summary Judgment Order). Glatfelter believes that the court’s opinion and order supports its position on the merits of the case and, while subject to appeal, significantly reduces the company’s exposure to remediation costs for the Lower Fox River and the Bay of Green Bay.

The litigation, which Glatfelter previously announced had been filed during the first quarter of 2008, relates to significant uncertainties associated with environmental claims arising from the presence of polychlorinated biphenyls (PCBs) in the sediments in the lower Fox River and in the Bay of Green Bay, Wisconsin. Appleton Papers Inc. and NCR Corporation, two of the parties potentially responsible, sued certain other entities, including Glatfelter, to allocate responsibility among them and to seek reimbursement. The first phase of the litigation was scheduled for trial beginning in January 2010.

 

In the Court’s Summary Judgment Order, the Court denied motions filed by Appleton Papers Inc. and NCR Corporation for summary judgment and granted the defendants’ motions for summary judgment. The Court expressed its intention to enter judgment against Appleton Papers Inc. and NCR Corporation on all of their contribution claims, holding that “the plaintiffs are not entitled to recover from the defendants for their costs incurred in cleaning up damage caused by dangers the plaintiffs created.” The Court cancelled the pending trial, and will enter judgment unless the parties provide a reason not to do so in the next 30 days. The Court’s opinion does not affect Glatfelter’s responsibility to the United States or the State of Wisconsin, nor does it resolve Glatfelter’s counterclaims against Appleton Papers Inc. or NCR Corporation for costs Glatfelter has expended and, therefore, further litigation is possible. 

 

More information about these factors is contained in Glatfelter’s filings with the U.S. Securities and Exchange Commission, which are available at www.glatfelter.com.