<P><B>Bear Island Paper Sees Upside for Quarter</B>

Bear Island Paper Company, L.L.C. reported net income of $1.324 million for the third quarter ended, compared to a net loss of $3.817 million for the third quarter of 1999. Income from operations for the third quarter of 2000 and 1999 was $4.8 and $664,000, respectively. Net sales for the three months, 2000 and 1999 were $28.26 million and $26 million, respectively.

Results for the quarter ended September 30, 2000, compared with the same period in the prior year were favorably impacted by an 18% increase in average per ton selling prices of newsprint. Volume of tonnage sold for the three months decreased 9% when compared to the same period in 1999. Results were negatively impacted by an increase in manufacturing costs, on a per ton basis of 4% in the quarter ended September 30, 2000, when compared to the same period in 1999.

For the nine months ended Sep. 30, 2000, the company reported a net loss of $3 million, compared to a net loss of $7.872 million for the same period in 1999.