<B>American Tissue Reports Strong Quarter, Year</B>

American Tissue Inc. announced operating results for the quarter and fiscal year. American Tissue reported the highest annual net sales and net income in its 19-year history.

Net sales for the fourth quarter were $135.4 million, compared to $100.0 million for the fourth quarter of fiscal 1999. Net sales for the fiscal year ended September 30, 2000 were $493.6 million, compared to $284.3 million for the fiscal quarter ended September 30, 1999.

Net sales of tissue products were $86.9 million for the quarter, compared to $58.0 million for last year’s quarter. Net sales of tissue products were $285.7 million for the fiscal year ended September 30, 2000, compared to $240.6 million for the prior fiscal year, for an increase of $45.1 million or 18.7%.

Mehdi Gabayzadeh, president and CEO of the company, stated: ``The acquisition of the Memphis, Tennessee tissue mill by our affiliate and American Tissue's purchases of its production will allow us to better serve the increased demand we are experiencing in our tissue business and provide a foundation for cost reduction synergies which will be passed through to American Tissue, as this facility is brought to full production.''