<B>American Tissue Affiliate Completes Acquisition</B>

American Tissue Inc. announced that one of its affiliate companies completed the acquisition of the assets of the Ampad and the Shade Allied divisions from American Pad & Paper.

Ampad is one of North America's largest suppliers of writing pads, filing supplies and retail envelope. The Shade Allied division is one of the four largest forms suppliers in North America. The Ampad division will operate under the name American Pad & Paper LLC and be headquartered in Plano, Texas.

Mark Lipscomb, vice president of AP&P, has been named as president and CEO of the new affiliate under which Ampad will be organized.

The Shade Allied division will operate under the leadership of Al Vosper, president and CEO of American Forms LLC. This new larger forms business will have an expanded product line in the custom cut and cut size business.