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Clearwater Paper Announces Expiration of HSR Waiting Period

Spokane, Washington, USA, 25 October 2010 -- (BUSINESS WIRE) -- Clearwater Paper Corporation (NYSE:CLW) today announced that the 30-day waiting period for antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with Clearwater Paper's planned acquisition of Cellu Tissue Holdings, Inc. ended 22 October 2010. On 16 September 2010, Clearwater Paper announced it had entered into an agreement to acquire Cellu Tissue for USD 12.00 in cash for each share of Cellu Tissue common stock.

The acquisition has been approved by the board of directors of each company and is subject to approval by Cellu Tissue's stockholders and other customary closing conditions. The acquisition is expected to close in the fourth quarter of 2010.

On 22 October 2010, Clearwater Paper completed its previously announced offering of USD 375 million principal amount of 7 1/8% senior notes due 2018. The net proceeds of the offering will be used to finance in part the company's acquisition of Cellu Tissue, to refinance certain existing indebtedness of Cellu Tissue, and to pay fees and expenses incurred as part of the notes offering, the acquisition of Cellu Tissue and related transactions. The proceeds from the offering have been placed in escrow pending the closing of the acquisition of Cellu Tissue. If the acquisition of Cellu Tissue is not completed, Clearwater Paper will be required to redeem all of the notes.

Cellu Tissue has filed with the SEC a preliminary proxy statement and intends to file with the SEC a definitive proxy statement and other relevant material in connection with the acquisition. The definitive proxy statement will be sent or given to the stockholders of Cellu Tissue. Before making any voting or investment decision with respect to the acquisition, investors and stockholders of Cellu Tissue are urged to read the proxy statement and the other relevant material when they become available because they will contain important information about the acquisition. The proxy statement and other relevant materials (when they become available), and any other documents filed by Cellu Tissue with the SEC, may be obtained free of charge at the SEC's Web site at www.sec.gov, at Cellu Tissue's Investor Relations Web site at cellutissue.com/investor (click "SEC filings"), or from Cellu Tissue by contacting Investor Relations by mail at 1855 Lockeway Drive, Suite 501, Alpharetta, Georgia 30004, Attention: Investor Relations, or by telephone at 678-393-2651.

Clearwater Paper manufactures quality consumer tissue, bleached paperboard, and wood products at six facilities across the country. The company is a premier supplier of private label tissue to major retail grocery chains, and also produces bleached paperboard used by quality-conscious printers and packaging converters. Clearwater Paper's 2500 employees build shareholder value by developing strong customer partnerships through quality and service.

Cellu Tissue Holdings, Inc. is a North American producer of tissue products, with a focus on consumer-oriented private label products and a growing presence in the value retail tissue market. For more information, visit Cellu Tissue's Web site at www.cellutissue.com.


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