<b>American Tissue Reports Quarterly Increase in Revenue</b>

American Tissue Inc. announced operating results for the second quarter ended March 31, 2001. Revenues for the second quarter were $139.8 million, compared to $121.0 million for the second quarter last year. The company attributed the improvement to higher market demand for tissue products.

The company also noted that it increased its capacity of tissue jumbo rolls and converted tissue products.

Net sales of tissue products were $92.2 million for the quarter, compared to $65.1 million for the same time last year, a 41.6% increase.

Net sales of uncoated freesheet paper products increased $1.4 million, or 3.8%, from $37.0 million for the second quarter of fiscal 2000 to $38.4 million for the second quarter of fiscal 2001. This increase was due to increased production.

Net sales of virgin wood pulp decreased $7.7 million, or 47.8%, from $16.1 million in the second quarter of fiscal 2000 to $8.4 million in the second quarter of fiscal 2001. This decrease was primarily due to higher internal requirements and lower average net sales prices.