Neenah Paper Acquires FiberMark's German Operations

Alpharetta, Georgia, USA, 11 October 2006 -- /PRNewswire/ -- (NYSE:NP) - Neenah Paper, Inc. today announced that it completed the previously announced purchase of FiberMark's German subsidiaries for USD 218 million. The transaction was financed through USD 160 million of available cash and USD 58 million of new debt drawn against the company's existing senior credit facility.

The acquired businesses will operate as part of Neenah Paper's technical products business under the name Neenah Germany. Neenah Germany will be comprised of two subsidiaries, Neenah Gessner and Neenah Lahnstein. These businesses, with three mills located near Munich and Frankfurt, produce a wide range of products, including auto and other filter media, nonwoven wall coverings, masking and other tapes, abrasive backings, and specialized printing and coating substrates. In 2005, combined net sales from these units were approximately USD 221 million.

"This acquisition, coupled with the sale of our Terrace Bay pulp operation in August, makes Neenah Paper a much different and stronger company than we were at the start of the year, as we continue to execute our strategy to transform into a leading premium fine paper and technical products company," said Sean Erwin, chief executive officer and chairman of the board. "With today's closing, our integration plans can now move forward quickly; and we are more excited than ever about opportunities in Neenah Paper to create value both for our customers and our shareholders."

About Neenah Paper, Inc.

Neenah Paper manufactures and distributes a wide range of premium and specialty paper grades. 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 manufacturing operations in Wisconsin and Michigan; Nova Scotia, Canada; and Bruckmuhl, Feldkirchen-Westerham, and Lahnstein, Germany. Additional information about Neenah Paper can be found at the company's Web site at www.neenah.com.