Neenah Completes Purchase of Premium Brands from Wausau Paper

ALPHARETTA, GA—Feb. 6, 2012—Neenah Paper, Inc. (NYSE:NP) announced today completion of the previously announced purchase of certain premium paper brands and other assets from Wausau Paper Corp.

Key components of the transaction include:

• A cash payment of $21 million to acquire:

• Astrobrights®, Astroparche® and Royal brands.
• Exclusive license rights for a portion of Exact® brand specialty business, including Index, Tag and Vellum Bristol.
• Approximately one month of finished goods inventory.
• Converting equipment for retail grades.

• A supply agreement under which Wausau will manufacture and supply certain products to Neenah Paper during a transition period.

Annual sales from the purchased brands are estimated to be approximately $100 million and the Company expects to incur one-time costs related to the integration of approximately $10 million.

“We have been very pleased with both reaction from customers and the high level of collaboration with Wausau following the initial announcement. Our Fine Paper team is excited to market these brands as part of Neenah,” said John O’Donnell, Chief Executive Officer. “The transaction strengthens our leadership position in the premium papers market, while providing future growth opportunities in new channels such as retail. By leveraging our existing infrastructure to make and sell these profitable brands, this transaction will also create significant value for our shareholders.”

The purchase was financed through the Company’s existing credit facility and cash on hand. Additional information about the purchase and its impact on 2012 results will be shared in the Company’s Fourth Quarter Earnings Call on February 21, 2012.

About Neenah Paper, Inc.
Neenah Paper is a leader in premium image and performance-based products, including filtration, specialized substrates used for tapes, labels and other products, and high-end printing papers. Products are marketed under well-known brands such as CLASSIC®, Astrobrights®, ENVIRONMENT®, CRANE®, SUNDANCE®, KIMDURA®, Gessner®, JET-PRO® SofStretch(TM) and varitess®. Neenah Paper is headquartered in Alpharetta, Georgia and sells products in over 70 countries worldwide from manufacturing operations in the United States and Germany. Additional information about Neenah Paper can be found at the company's web site, www.neenah.com.