KapStone Records USD 63.6 Million Tax Benefit

Northbrook, Illinois, USA, 10 January 2012 -- /PRNewswire/ -- KapStone Paper and Packaging Corporation (NYSE: KS) announced that the Internal Revenue Service (IRS) has notified the company that the Joint Committee on Taxation approved KapStone's 2007-2009 examination reports as filed. As a result of the finalization of the IRS examination, KapStone will reverse in the fourth quarter USD 63.6 million of gross unrecognized tax benefits and accrued interest expense related to the company's position on alternative fuel mixture tax credits.

Upon reversal of this liability, KapStone's net income and diluted earnings per share for the fourth quarter of 2011 will reflect an increase of USD 63.6 million and USD 1.34, respectively.

Headquartered in Northbrook, Illinois, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper products, linerboard, and shipping containers. The company is the parent company of KapStone Kraft Paper Corporation, which includes paper mills in Roanoke Rapids, North Carolina, North Charleston, South Carolina, and Cowpens, South Carolina, 14 converting locations in the East and Midwest, and a lumber mill in Summerville, South Carolina. The business employs approximately 2700 people.