KapStone to Purchase MeadWestvaco's North Charleston Kraft Division

Northbrook, Illinois, USA, 07 April 2008 -- /PRNewswire/ -- KapStone Paper and Packaging Corporation (NASDAQ:KPPC) has signed an agreement with MeadWestvaco Corporation (NYSE:MWV) to purchase its North Charleston Kraft Division and related assets for USD 485 million in cash, subject to certain post-closing adjustments. KapStone expects to close the deal by the end of third quarter of 2008, subject to customary closing conditions, including regulatory review and receipt of financing.

"The acquisition of MWV's Charleston Kraft Division represents an important step for our company," said Roger Stone, KapStone's CEO. "It strengthens our
product portfolio by adding saturating kraft and unbleached kraft board and enhances our modest position in the linerboard market. The acquisition also
provides us with the opportunity to participate in geographic markets that we do
not currently serve," he said.

KapStone intends to be a leading supplier of kraft paper and saturating kraft; the acquisition is expected to intensify KapStone's focus in this segment of the industrial paper industry. The 2007 aggregate revenues for KapStone and Charleston are expected to be approximately USD 780 million, and the acquisition is expected to provide substantial free cash flow. KapStone
believes that the synergy opportunities for this acquisition are
at least USD 2.5 million per year, with half of the gains to be realizable within the first year of closing of the acquisition. KapStone has received a debt commitment letter from LaSalle Bank National Association and Banc of America Securities LLC for a USD 585 million senior secured credit facility. The USD 585 million credit facility is expected to consist of a USD 100 million revolving credit facility and a USD 485 million term loan maturing over five years.

An investor presentation has been posted on KapStone's Web site,
http://www.kapstonepaper.com/, to be available in conjunction with the
investor conference call scheduled for 07 April 2008, to discuss the acquisition. A replay of the webcast, and a slide presentation, also will be on the web site, beginning the same day.

The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at http://www.earnings.com/,
Thomson's individual investor portal, powered by StreetEvents. Institutional
investors can access the call via Thomson StreetEvents (http://www.streetevents.com/), a password-protected event management site.

Headquartered in Northbrook, Illinois, KapStone Paper and Packaging Corporation, is a leading North American producer of kraft paper and converter of inflatable dunnage bags. The company is the parent company of KapStone Kraft Paper Corporation which includes a paper mill in Roanoke Rapids, North Carolina, and Ride Rite(R), an inflatable dunnage bag manufacturer in Fordyce, Arkasas. The business employs approximately 700 people.

Source: KapStone Paper and Packaging Corporation

Web site: http://www.kapstonepaper.com/