KP Tissue announces that Kruger Products successfully finished construction of its new TAD tissue machine

MISSISSAUGA, ON, Feb. 22, 2013 /PRNewswire/ - KP Tissue Inc. ("KPT") (TSX: KPT) which owns an economic interest of approximately 16.9% in Kruger Products L.P. ("KPLP"), today announced that KPLP has successfully finished the construction phase of its TAD (Through-Air-Dried) tissue project at its Memphis, Tennessee facility. In the autumn of 2011, KPLP commenced the construction of the TAD tissue machine and its related infrastructure at an estimated total cost of U.S. $322 million.

"We are especially pleased to have completed this phase of the project on time and on budget. The startup phase has commenced and we are already shipping products to our customers. The TAD project is a key component of KPLP's North American growth strategy," said Mario Gosselin, CEO of KPLP and KPT.

The new TAD tissue machine when fully optimized is expected to increase the company's production capacity by approximately 20 percent, or 60,000 metric tonnes per year.

About KP Tissue Inc.
KP Tissue Inc. (KPT) was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP. It currently holds a 16.9% interest in KPLP.  For more information visit www.kptissueinc.com.

About Kruger Products L.P.
Kruger Products L.P. is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products L.P. serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®' and White Swan®. In the U.S., Kruger Products L.P. manufactures the White Cloud® brand, as well as many private label products. Kruger Products L.P. has approximately 2,300 employees across North America and operates five FSC® CoC- certified mills, four of which are located in Canada and one in the US. Kruger Products L.P. is currently a wholly-owned subsidiary of Kruger Inc. For more information visit www.krugerproducts.ca.

Forward-Looking Statements
Certain statements in this press release about KPT's and KPLP's current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking information is based on certain key expectations and assumptions made by KPT or KPLP, including expectations and assumptions concerning the production capacity of the TAD Project, and KPLP. Although KPT and KPLP believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that such expectations and assumptions will prove to be correct.

Many factors could cause actual results, performance or achievements or future events or developments of KPT to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail in the "Risk Factors" section of KPT's prospectus issued December 13, 2012: dependence on underlying performance of KPLP; dependence on cash distributions by KPLP; risks associated with the TAD Project; operational risks; KPLP's inability to innovate effectively; adverse economic conditions; KPLP's failure to implement its business and operating strategies; KPLP's dependence on key personnel; KPLP's loss of key suppliers; labour disputes adversely affecting KPLP's cost structure and KPLP's ability to run its plants; exchange rate and U.S. competitors; KPLP's inability to service all of its indebtedness; interest rate and refinancing risk; information technology and innovation; and internal controls.

These factors are not intended to represent a complete list of the factors that could affect KPT and/or KPLP; however, these factors should be considered carefully, and readers should not place undue reliance on forward-looking statements made herein or in the documents reproduced herein.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information contained herein is made as of the date of Press Release and KPT and KPLP undertake no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.

SOURCE KP Tissue Inc.