Fortress Paper Announces Approval of Initial Financing Facility for PM1 Rebuild

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THE UNITED STATES.


Fortress Paper Ltd. (www.fortresspaper.com) (TSX:FTP) ("Fortress Paper" or the
"Corporation") announces the signing by its wholly-owned subsidiary Dresden
Papier GmbH ("Dresden") of a factoring agreement of Dresden's accounts
receivables with GE Capital Bank AG ("GE") in connection with the rebuild of PM1
into a banknote machine. The factoring facility is for up to EUR 12 Million (CDN
$17.8M) commencing February 2, 2010 and extends over a three year period. The
base rate for financing is 3 month Euribor (0.665% on Feb. 2) + 2.25%.


The Dresden factoring facility and cash on hand, as well as proceeds from a
factoring agreement to be entered into by Landqart AG and a new Dresden loan
facility should provide the necessary financing and cash flow for the planned
rebuild of PM1 to increase its production capacity from the current 2,500 tonnes
per annum to approximately 10,000 tonnes per annum. Fortress Paper has signed a
letter of intent which outlines the major terms for the Dresden loan facility
and Landqart factoring facility and is currently in the process of negotiating
the definitive agreements.


PM1 is currently utilized for lower margin specialty papers and low to medium
security papers. The rebuild is expected to be completed by the end of 2010,
with banknote production from this rebuilt machine scheduled to begin in the
first quarter of 2011. Initial orders relating to proposed capital expenditures
have been planned and initiated, subject to final confirmation.


About Fortress Paper

Fortress Paper is a leading international producer of security and other
specialty papers. Fortress Paper operates two paper mills, the Landqart Mill
located in Switzerland and the Dresden Mill located in Germany. Fortress Paper's
security papers include banknote, passport and visa papers and its specialty
papers include non-woven wallpaper base products, and graphic and technical
papers. As an extension of its security papers business, the Landqart Mill has
been actively developing and marketing innovative paper-based security products.


This news release contains certain forward-looking statements that reflect the
current views and/or expectations of Fortress Paper with respect to its
performance, business and future events. Investors are cautioned that all
forward-looking statements involve risks and uncertainties including, without
limitation, those relating to changes in the market, potential downturns in
economic conditions, foreign exchange fluctuations, regulatory requirements,
competition, risks associated with the rebuild of PM1, the terms and conditions
relating to the financing of the PM1 rebuild and the sufficiency of such
financing, and other risk factors listed from time to time in the Corporation's
public filings. These risks, as well as others, could cause actual results and
events to vary significantly. Fortress Paper does not undertake any obligations
to release publicly any revisions for updating any voluntary forward-looking
statements, except as required by applicable securities law.