<B>Perkins Sees Upside for Quarter</B>

Perkins Papers Ltd. announces net earnings of $4 million for the third quarter compared with $6.6 million for the corresponding quarter in 1999 and $1.6 million for the second quarter of 2000.

Compared with the corresponding quarter in 1999, net sales increased 10% to reach $86 million compared with $78.4 million. Net sales increased 11% compared to net sales of $77.6 million in the second quarter of 2000.

In commenting on these results Suzanne Blanchet, president and CEO, stated: "During the third quarter, the improvement of our results mainly comes from the implementation of increases in selling prices announced earlier in the year, which offset the increase in fiber costs which occurred during the last quarters. Unfortunately, profitability was affected by increases in the cost of energy and freight during the quarter. Furthermore, problems encountered with the startup of the paper machine in Rockingham (North Carolina) also affected results during the quarter.

However we expect to be able to resolve startup-related problems and attain normal running conditions during the course of the first quarter next year. In other respects, the demand in the jumbo rolls and converted products markets is very good. In light of the conditions prevailing in the market, we believe that profitability will continue to improve in the next quarters."