Atlanta Georgia – July 2, 2008 — Cellu Tissue Holdings, Inc. announced today the completion of its acquisition of the Atlantic Paper & Foil assets. The combination of Cellu Tissue Holdings and Atlantic Paper & Foil creates a company with the scale and resources to deliver industry-leading Machine Glazed & Tissue hard roll products and services, as well as address the rapidly expanding private label Retail and Away From Home converted tissue markets. As a result of the acquisition, Cellu Tissue now has more than 1,200 employees with nine strategically located manufacturing and converting locations to supply customers east of the Rocky Mountains.

This is a significant enhancement in Cellu Tissue’s ability to deliver the additional capacity and market reach necessary to support our valued customers’ continued growth.

Effective immediately, Cellu Tissue will integrate the two companies’ products, customers and employees while ensuring a seamless transition for our customers, partners and investors.