<B>Bear Island Posts Quarterly Loss</B>

Bear Island Paper Company, L.L.C reported a net loss of $420,000 for the second quarter, compared to a net loss of $2.558 million for the second quarter of 1999.

Income from operations for the second quarter of 2000 and 1999 was $3 million and $1.5 million respectively. Net sales for the three months ended June 30, 2000 and 1999 were $27.6 million and $26.5 million, respectively.

Results for the quarter, compared with the same period in the prior year were favorably impacted by a 7% increase in average per ton selling prices of newsprint. Volume of tonnage sold for the three months decreased 3% when compared to the same time last year.

For the six months ended June 30 the company reported a net loss of $4,338,000, compared to a net loss of $4,056,000 for the same period in 1999. Income from operations for the six months ended June 30, 2000 and 1999 was $ 2,665,000 and $4,599,000, respectively. Net sales for the six months ended June 30, 2000 and 1999 were $54,008,000 and $ 52,452,000, respectively.