<B>National Envelope Completes Deal for APP</B>

National Envelope Corp. and American Pad & Paper Co. announced the acquisition of AP&P's Williamhouse division by NEC.

NEC is the largest privately held envelope manufacturer in the United States with net sales in 1999 of $365 million. Last year Williamhouse recorded net sales of $292 million. Combined, NEC/Williamhouse will be the country's largest supplier of franchised proprietary and commodity business envelopes to the wholesale market.

NEC's offer for Williamhouse and the acceptance by AP&P has been confirmed in a Final Sales Order approved by the Federal Court overseeing AP&P's Chapter 11 bankruptcy process.