Cellu Tissue Holdings, Inc. to Open 325,000 sq. ft. Facility in Oklahoma City

Published: Wednesday, February 17, 2010 7:00 am By: Jill Harrison

OKLAHOMA CITY, February 17, 2010 - Cellu Tissue Holdings, Inc., (NYSE: CLU), a manufacturer and converter of tissue products for the private-label and away-from-home industries, will open a 325,000 sq. ft. facility at 50 N. Council Rd. in June 2010.

Cellu Tissue conducted a national location search before choosing Oklahoma City for its new facility. The site selection process was highly competitive and was finalized in December. Oklahoma City's low cost of doing business and central location were both major factors in Cellu Tissue's decision.

Cellu Tissue will be located in the former Lucent building, and it is currently completing a multi-million dollar refurbishing of that space. When fully operational, the facility will manufacture private label napkins, paper towels, bath and facial tissue for nationally known retail stores.

"The addition of our new Oklahoma City converting facility is perfectly aligned with Cellu Tissue's key growth strategy and ensuring we deliver to our valued customers the broadest range of converted private label tissue products that they require on time and complete," stated Russell C. Taylor, president and chief executive officer of Cellu Tissue.

"This facility will include state-of-the-art converting equipment and we believe this addition will further enhance the product offerings and services for both our current and the future private label customers of Cellu Tissue," said Chief Operating Officer Steve Ziessler.

"Oklahoma City has one of the most progressive business climates in the nation, and I'm glad Cellu Tissue recognized what we could bring to the project," said Robin Roberts Krieger, vice president of economic development for the Greater Oklahoma City Chamber. "We are thrilled that they chose Oklahoma City, and the fact that they are bringing new jobs as well as bringing new life to the former Lucent facility is outstanding."

Cellu Tissue is currently accepting applications for employment, and will continue to hire until the plant begins operations in June 2010. The company is headquartered in Alpharetta, Georgia, and has manufacturing locations in Wisconsin, Mississippi, Michigan, Georgia, Ontario, New York and Connecticut. Oklahoma City is the first Southwestern location for the company.

Cellu Tissue Holdings, Inc. is a leading North American producer of consumer-oriented private label tissue products with a growing presence in the value retail tissue market. Information about Cellu Tissue Holdings, Inc. is available at its website: www.cellutissue.com.

For further information, please contact David Morris, chief financial officer of Cellu Tissue Holdings, Inc. at 678-393-2651, ext. 2164 or at investor@cellutissue.com.

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