<B>Crown Vantage Selling Specialty Business</B>

Crown Vantage Inc. and its wholly owned subsidiary Crown Paper Co. announced that Crown Paper signed a Letter of Intent with KPS Special Situations Fund, LLC for the sale to KPS or its designee of substantially all of the specialty, packaging, text and cover papers business of Crown Paper.

The consideration for the acquisition of the assets to be purchased is $17.5 million in cash and a $7.5 million note payable in seven years, with interest payable in cash or additional notes at the option of the Purchaser. In addition, if the Purchaser subsequently sells certain assets above a threshold level, under certain specific conditions, Crown Paper will be entitled to share in the proceeds of any such sale. The Purchaser has also agreed to assume certain liabilities of Crown Paper arising after the filing of the Chapter 11 case.

Bob Olah, CEO of Crown Vantage and Crown Paper, said: ``The sale of substantially all of the Company's specialty papers business to one buyer will enable that business to thrive in a way that would not have been possible under the previous combined offer that we had received for St. Francisville and two of the domestic specialty mills. At the same time, this sale will enable Crown to focus on reorganizing around St. Francisville, its principal asset. The agreement with KPS should hasten our exit from Chapter 11 and enable us to emerge a stronger company in a position to deliver superior products and services to our customers.''

``The specialty business has a very loyal customer base, a broad family of high quality and unique products, and a talented group of employees,'' said David Shapiro, a managing principal of KPS. ``We look forward to creating a vibrant and successful specialty paper company through a combination of cost reduction, focused capital investment and new product introductions.''

November 2000
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