Alpharetta, Georgia, USA, 24 June 2008 -- /PRNewswire/ -- Neenah Paper, Inc. (NYSE: NP) announced today that it had completed the sale of its Pictou pulp mill to Northern Pulp Nova Scotia Corporation, a new operating company of Atlas Holdings LLC and Blue Wolf Capital Management LLC. The intended transaction was originally communicated in a press release on 15 May 2008; and terms of the sale are consistent with this earlier release.

As part of the agreement, Neenah Paper paid an initial USD 1.8 million to Northern Pulp at closing. A second and final payment of USD 10 million will be made in the third quarter. In return, Northern Pulp has assumed all assets and liabilities associated with the Pictou operations, as well as existing customer contracts, supply agreements, labor agreements, and pension obligations. As previously indicated, the transaction is expected to be significantly cash positive to Neenah Paper as a result of tax benefits that would be realized over the next one to three years.

Following this sale, Neenah Paper will become a pure premium paper and specialty products company and no longer own any pulp mills. The company will continue to own 500,000 acres of timberlands in Nova Scotia and has announced its intent to sell these timberlands within the next 12 months.

About Neenah Paper, Inc.

Neenah Paper is a leading global manufacturer of premium, performance- based papers and specialty products used in a variety of applications including filtration, printing and writing, and as backing and component materials for many specialized industrial and consumer applications. Based in Alpharetta, Georgia, the company has paper manufacturing operations in the United States and Germany and approximately 500,000 acres of timberlands in Nova Scotia, Canada. Additional information about Neenah Paper can be found at www.neenah.com .

About Northern Pulp Nova Scotia Corporation

Northern Pulp Nova Scotia Corporation is a new operating company of Atlas Holdings LLC and Blue Wolf Capital Management LLC to own and operate the Pictou pulp mill. Northern Pulp will be owned by Blue Wolf and Atlas, experienced operators of industrial facilities throughout North America.

Source: Neenah Paper, Inc.