Ratification of new collective agreement for Kruger Products’ Crabtree plant and Joliette warehouse

KP Tissue Inc. (TSX: KPT) which has a limited equity interest in Kruger Products Inc. (the “Company”), is pleased to announce that the 482 unionized employees at its Crabtree plant and Joliette warehouse have ratified a new five-year collective agreement.

“We believe that this new collective agreement, which was recommended by the union bargaining committee, is in the best interest of all parties. This agreement allows our employees to continue to enjoy a competitive compensation package while restarting tissue operations to serve the needs of our customers.” stated Dino Bianco, CEO of the Company.

About KP Tissue Inc. (KPT)KPT was created to acquire, and its business is limited to holding, a limited equity interest in Kruger Products, which is accounted for as an investment on the equity basis. KPT currently holds a 12.8% interest in Kruger Products. For more information visit www.kptissueinc.com.

About Kruger Products Inc.Kruger Products is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products has approximately 2,800 employees and operates ten FSC® COC-certified (FSC® C-104904) production facilities in North America. For more information visit www.krugerproducts.ca.

For more information:

Mr. François ParoyanSVP, General Counsel & Corporate [e-mail] 905-812-6936