<B>Crown Vantage Selling Crown Paper Assets</B>

Crown Vantage Inc. and its wholly owned subsidiary Crown Paper Co. announced that Crown Paper entered into a definitive asset purchase agreement with a wholly owned subsidiary of KPS Special Situations Fund, LLC, for the sale of substantially all of the specialty, packaging, text and cover papers business of Crown Paper, including the name ``Curtis Papers Inc.,'' which shall be the KPS subsidiary name after the sale closes.

Crown Paper and KPS had entered into a Letter of Intent on last month relating to the sale of these assets.

The consideration for the acquisition of the assets to be purchased is $14.25 million in cash (subject to a working capital adjustment at closing) and a $7.5 million note payable in seven years, with interest payable in cash or additional notes at the option of Curtis Papers Inc. (``Curtis'').

Additionally, if Curtis subsequently sells certain assets above a threshold level, under certain specific conditions, Crown Paper will be entitled to share in the proceeds of any such sale. Curtis has also agreed to assume certain liabilities of Crown Paper -- primarily relating to operating the business to be sold - that may arise after the filing of the Chapter 11 case.

``Upon consummation, this sale will allow Crown Vantage to reorganize around our principal asset, our integrated coated publishing and specialty papers mill in St. Francisville, La.,'' said Crown Vantage president and CEO, Robert Olah. ``Our creditors recognize the increased flexibility this gives us as we hasten toward a Chapter 11 plan of reorganization.''