<B>Perkins Starts New Machine</B>

Perkins announces the start-up of a new 30,000 ton capacity tissue paper machine at its Rockingham, N.C., mill. This investment increases Perkins’ production capacity by 13%, for a total of 262,000 tons per year. This additional machine will create 25 direct jobs and will allow Perkins to better serve its American customers. The Rockingham Division now has two paper machines and a more modern deinking unit for the manufacturing of superior quality products.

The project completes the $120-million capital expenditure program undertaken in 1997 which has enabled Perkins to increase its manufacturing capacity by 31% and its converting capacity by 34% while enhancing product quality and production flexibility of the Corporation’s seven mills.