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Schweitzer-Mauduit Announces Restructuring
Alpharetta, Georgia, USA, 01 October 2007 -- /PRNewswire/ -- Schweitzer-Mauduit International, Inc. (NYSE: SWM) today announced a three-part restructuring plan to reduce tobacco-related paper capacity in France and the United States and reduce employment levels in Brazil.

One production site in the United States and a paper machine in France will be shutdown. As a result of these actions, Schweitzer-Mauduit's worldwide employment levels will be reduced by approximately 300 people, or 8%, including 170 employees in the United States, an expected 70 employees in France and 60 employees in Brazil. These restructuring activities are expected to be completed during 2008.

Upon full implementation, the annual pre-tax benefits of these three restructuring activities are estimated to be in the range of USD 9-11 million. Schweitzer-Mauduit projects pre-tax restructuring expenses in the range of USD 27-30 million as a result of these actions, comprised of USD 12-13 million in cash expenses and USD 15-17 million in non-cash charges. Approximately USD 19 million of these projected restructuring expenses are expected to be recorded during the third quarter of 2007.

Wayne H. Deitrich, chairman of the board and chief executive officer, commented that, "Schweitzer-Mauduit evaluated options to address the impact on our operations from declining demand for traditional tobacco-related paper products in western Europe and North America. Further, significant strengthening of the Brazilian real to the U.S. dollar in recent years has negatively impacted our Brazilian unit's profitability and cost competitiveness. These factors led to today's announced actions. Though these steps are regrettable in terms of the impact on our employees and the communities in which our facilities operate, they are necessary to improve our business performance and long-term profitability."

The three restructuring actions announced today include the shutdown of Schweitzer-Mauduit's paper mill in Lee, Massachusetts, beginning in May 2008, the expected idling of a base tipping paper machine at the company's mill in Malaucene, France, by the end of 2008 and reductions that occurred in August 2007 in employment levels at the company's paper mill in Santanesia, Brazil. In total, four paper machines will be shutdown, including three in the United States and one in France. The production of certain tobacco-related paper products will transfer to Schweitzer-Mauduit's other paper machines in Brazil, France, and the United States.

Schweitzer-Mauduit International, Inc. is a diversified producer of premium specialty papers and the world's largest supplier of fine papers to the tobacco industry. It also manufactures specialty papers for use in alkaline batteries, vacuum cleaner bags, overlay products, saturating base papers, business forms and printing, and packaging applications. Schweitzer-Mauduit and its subsidiaries conduct business in more than 90 countries and employ 3500 people worldwide, with operations in the United States, France, Brazil, the Philippines, Indonesia, and Canada. For further information, visit the company's Web site at www.schweitzer-mauduit.com.

Source: Schweitzer-Mauduit International, Inc.

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