<b>KPS Takes Ownership of Crown Vantage Operations</B>

KPS Special Situations Fund, L.P. purchased certain assets of Crown Vantage Inc. Additionally, the company formed Curtis Papers to own and operate the specialty paper and premium papers businesses of Crown Vantage. KPS invested $10 million of equity to fund the transaction.

The specialty papers business of Curtis Papers will be conducted under the name of Curtis Specialty Papers and will include the paper mills in Port Huron, Mich., and Milford, N.J.

The premium papers business will operate under the name of Curtis Fine Papers and will conduct operations out of a paper mill in Adams, Mass., and a coating and converting facility in Richmond, Va.

Crown Vantage will continue to run the text and cover mill in Ypsilanti, Michigan under an operating agreement with Curtis Papers for up to six months while the grades produced in Ypsilanti are transitioned to the Adams Mill.

In addition to the four domestic facilities, the new company will also own the stock of Curtis Papers, Ltd., which consists of two premium paper mills in Scotland. The Scottish mills market premium papers under the name of Curtis Classic in the U.K. and throughout Europe.