<B>Eastern Pulp Reaches Agreement</B>

Eastern Pulp & Paper Corp. reached wage and benefit agreements with employees at the company's two papermaking mills in northern Maine.

Employees at Eastern's Brewer and Lincoln, Maine, facilities earlier this month overwhelmingly voted in favor of the changes, which further reduce the company's costs. This development, along with effective cost reduction programs already in place, are key reasons for the company's economic progress, Eastern chairman and CEO Joseph Torras, Sr., said today.

"These encouraging developments, along with stronger than expected sales for our pulp and paper products during the last three months, will assist us in emerging from Chapter 11 proceedings," Torras said. "Results for the month of January may turn out to be better than December, which, in turn, was better than November--all exceptions within the pulp and paper industry."

"The continued strength of Eastern's products in all of its markets and the support of each Eastern customer across North America is particularly heartening, and I want to personally thank our customers for it," said Torras. "We simply could not do it without you."