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NewPage and USW Applaud Decision Against Subsidized Imports
Dayton, Ohio, USA, 30 March 2007 -- /PRNewswire/ -- NewPage Corporation and the United Steelworkers (USW) responded today to the U.S. Department of Commerce's preliminary determinations in the countervailing duty investigations of coated free sheet paper imports from China, Indonesia, and South Korea. In these preliminary determinations, the Department found margins of 20.35% and 10.90% for the two Chinese producers, 21.24% for the Indonesian producers, and margins ranging from 0.04% to 1.76% for the South Korean producers.

"We are pleased with the Department's preliminary affirmative determinations. This confirms what we have been experiencing in the marketplace -- unfairly subsidized imported coated free sheet paper that has led to artificially low prices," said Mark A. Suwyn, chairman and chief executive officer for NewPage. "We also look forward to the Department's preliminary determinations in our companion antidumping cases involving coated free sheet imports from the same three countries, and believe that affirmative determinations in these cases will be a significant step toward restoring free trade to our industry."

Leo W. Gerard, International President of the USW, whose union represents 90% of the workforce in the U.S. coated free sheet paper industry, said "The message to foreign governments is 'stop providing unfair subsidies to your exporters.' We are also very pleased that the Department of Commerce decided it was time to revisit its old practice and apply the countervailing duty law to China. This is a positive first step."

Commenting on the application of the countervailing duty law to China, Gilbert B. Kaplan, a partner at the King & Spalding law firm that represents NewPage Corporation, noted, "This is an important step in dealing with China- U.S. trade issues, and should make a significant difference for U.S. companies and workers. China is a major participant in the global marketplace, and it should not be exempt from the laws that ensure fair trade."

"This decision is welcome news for our workers here in Maryland, and at other coated freesheet mills throughout the United States," noted Tom Caldwell, president of Local 676 in Luke, Maryland. "NewPage had to shut down a paper machine here at the Luke facility earlier this year because of low-priced imports, and other companies have had to do the same over the past three years. Putting the brakes on unfairly traded products will help ensure our workers a fighting chance to compete on equal terms."

Once the countervailing duty determinations are published in the Federal Register, importers will be required to post bonds in the amount of the subsidy margins calculated by the Department. In addition to the countervailing duty investigations, NewPage initiated antidumping cases on imports from China, Indonesia, and South Korea. Any duties found in those cases would be in addition to the subsidy margins found in the countervailing duty cases. Decisions in the antidumping cases are expected on 29 May 2007.

Coated free sheet paper is used in many high-end commercial printing applications. End uses include annual reports, coffee table books, magazines, and brochures.

About NewPage Corporation

NewPage Corporation, headquartered in Dayton, Ohio, is a leading U.S. producer of coated papers in North America. The company produces coated papers in sheets and rolls with many finishes and weights to offer design flexibility for a wide array of end uses. With more than 4300 employees, NewPage operates integrated pulp and paper manufacturing mills in Escanaba, Michigan; Luke, Maryland; Rumford, Maine; and Wickliffe, Kentucky. These mills have a combined annual capacity of approximately 2.2 million tons of coated paper.

About United Steelworkers

The USW represents more than 130,000 workers in the paper and forest products industries.

Source: NewPage Corporation, United Steelworkers

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