Clearwater Paper Corp. (CLW)

[SAE]

Clearwater Paper Selects Tissue Machine

Clearwater Paper Corporation (NYSE: CLW) today announced it has selected Metso Corporation of Helsinki, Finland, to manufacture its new Through-Air-Dried (TAD) tissue machine to be located at the company’s previously announced Shelby, North Carolina, tissue converting and distribution facility.

“We chose an industry staple, a proven supplier, a machine used by many tissue companies around the world,” said Brian Hoaglund, expansion project leader for Clearwater Paper. “Our team looked at all of the leading suppliers, but in the end we were most comfortable with Metso, due to their excellent engineering and quality end-product as well as top notch customer service.”

In June 2010, Clearwater Paper announced it would build the new through-air-dried (TAD) tissue machine and converting facility at Shelby, North Carolina. The new production and distribution capabilities of the facility will increase the company’s ultra and premium offerings to existing Southern and East Coast customers and create new opportunities to expand the company’s private label consumer tissue business to other retail grocery chains in the region.

Construction of the first phase — converting and warehouse areas of the facility — is on schedule and the company expects to begin converting production at the facility in the second half of 2011. The new Metso paper machine is expected to begin production during the second half of 2012.

The company believes that TAD technology is the most efficient and effective way to provide softness, strength, convenience and absorption in tissue products. Metso’s machine will comprise a complete tissue production line with stock preparation equipment and an Advantage ThruAir 200 TAD tissue machine including an OptiFlo II TIS multi-layer headbox, Thru-Air dryers and air system, and an Advantage WetDust dust management system. The production line will also feature Metso’s patented Advantage SoftReel-B belted reel technology. The production line will be optimized to produce ultra TAD quality tissue and towel products at high speed and efficiency.

ABOUT CLEARWATER PAPER

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, hard roll tissue, machine glazed tissue, bleached paperboard, pulp and wood products at 14 manufacturing locations in the U.S. and Canada. The company is a premier supplier of private label tissue to major retailers and wholesale distributors. This includes grocery, drug, mass merchants and discount stores. The company also produces bleached paperboard used by quality-conscious printers and packaging converters. Clearwater Paper's 3,800 employees build shareholder value by developing strong customer partnerships through quality and service.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding enhancement of product offerings, increased production and distribution capabilities, customer relationships, expansion of business and customer opportunities, completion of new facilities and the technology being deployed by the company. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the company's ability complete its new facilities; customers' product preferences; changes in the United States and international economies; changes in raw material and energy costs; cyclical industry conditions; competitive pricing pressure for the company's products; changes in freight costs and disruptions in transportation services; unanticipated manufacturing disruptions; changes in general and industry-specific laws and regulations; unforeseen environmental liabilities or expenditures; labor disruptions; and other risks and uncertainties described from time to time in the company's public filings with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this press release and the company does not undertake to update any forward-looking statements.

For additional information on Clearwater Paper, please visit our website at www.clearwaterpaper.com.




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