Neenah to Expand Fine Paper Business by Acquiring Fox River Paper

Alpharetta, Georgia, USA, 06 February 2007 -- /PRNewswire/ -- Neenah Paper, Inc. announced today it has signed a definitive agreement to purchase the Fox Valley Corporation, which owns Fox River Paper Company, LLC.

Fox River is a leading U.S. producer of premium fine papers. The transaction has been approved by the boards of directors of both companies and is subject to customary closing conditions and approval by Fox River shareholders. While the purchase price was not disclosed, the company indicated the acquisition would be financed through existing credit facilities and operating cash flows. Closing is expected to occur in the first quarter.

"The purchase of Fox River provides a unique opportunity to strengthen our existing Fine Paper business with added scale in the marketplace, better prospects for growth, and the ability to offer a broader array of premium branded products and better service to our customers," said Sean Erwin, chief executive officer and chairman of the board. "We also expect to be able to create real value as we optimize our combined operations and product portfolio. Additional details will be shared after the transaction is closed and as we move forward with integration activities."

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, in Nova Scotia, Canada, and in Bruckmuhl, Feldkirchen-Westerham, and Lahnstein, Germany. Additional information about Neenah Paper can be found at the company's Web site at www.neenah.com.