St. Marys Paper Corp strikes marketing, support deal

NEWS RELEASE

INTERNATIONAL FOREST PRODUCTS CORPORATION

************************* International Forest Products Corp and Bulkley Dunton announce marketing agreement for St. Marys Paper Corp

FOXBOROUGH, MASS – International Forest Products Corporation (IFP) and Bulkley Dunton Publishing Group® have announced an agreement to jointly market all of the paper produced by St. Marys Paper Corporation in Sault Ste Marie, Ontario.

St. Marys Paper restarted manufacturing in December after more than seven months of curtailed operations, and the company is currently marking their fourth month of continuous operations.

Upon start-up, St. Marys signed a multi-year agreement appointing IFP as the exclusive marketing representative of the mill.

This agreement also incorporates fiber supply, as well as financial, logistics and sales service support.

IFP has now contracted with Bulkley Dunton to market and distribute St. Marys’ products in the United States.

Daniel Kraft, president and CEO of IFP, released the following statement: “We are excited about this new relationship with Bulkley Dunton. The combination of resources and relationships of our two groups will certainly accelerate the momentum that has been generated by St Marys’ tremendous restart.”

George Doehner, president of Bulkley Dunton added: “Bulkley Dunton is committed to providing its customers with high-quality products at a competitive price point. Last year we recognized that by building a relationship with IFP and St. Marys Paper, we could ensure a steady supply of the supercalendered specialty papers our magazine, catalog and retail business customers need.”

“The start-up went well,” noted Dennis Bunnell, CEO and chairman of the board of St. Marys. “The mill has been blessed with a professional and dedicated workforce. Their skills have been clearly demonstrated in the press rooms where our paper has performed even better than I could have expected. We are all excited about this partnership. The joint efforts of IFP and Bulkley Dunton will ensure our customers can count on St. Marys for the long term and the perseverance of our local community and stakeholders will be rewarded.”

About St. Marys Paper Corporation

St. Marys Paper Corp. is a privately owned groundwood pulp and supercalendered (SCA/SCB) specialty paper mill producing quality paper grades used mainly by magazine publishers and retailing companies for high quality advertising inserts, flyers and catalogues.

The company has an energy business which has recently signed a long-term power purchase agreement with the Ontario Power Authority to produce biomass-fueled, renewable, electrical energy at the mill.

About Bulkley Dunton

Founded in 1833, the Bulkley Dunton Publishing Group is one of the oldest continuously operating companies in New York State.

The company specializes in serving the needs of magazine, catalog and book publishers with a client base that includes major magazine publishers in New York, the top catalogers across the U.S., and nearly all major book publishers.

Bulkley Dunton is a division of xpedx, one of the largest and premier distribution companies in North America owned by International Paper with locations throughout the U.S., Canada and Mexico.

About International Forest Products

IFP is a member of the Kraft Group of companies.

Founded in 1972 by Robert Kraft, IFP is one of the largest traders of forest products commodities in the world.

IFP conducts business in over 80 countries and has subsidiary offices located in Shanghai, Hong Kong, Beijing, Kuala Lumpur, Tel Aviv, Gothenburg, London, Santiago, Moscow and Vancouver.

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