Fortress Paper Ltd.

Fortress Paper Ltd.

December 10, 2010 19:57 ET

Fortress Announces Adoption of Automatic Share Disposition Plan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2010) -


Fortress Paper Ltd. ("Fortress Paper" or, the "Company") (TSX:FTP) today announced that it has adopted an Automatic Share Disposition Plan (the "ASDP") to enable its directors and senior executive officers to satisfy their tax liabilities resulting from the receipt of equity compensation or to diversify their investments and meet investment planning goals by selling, on an automatic basis through an independent third party securities broker (the "Broker"), certain of their common shares, including common shares issuable upon the vesting of units under the Company's 2009 long-term incentive plan and the exercise of stock options. Sales of common shares under the ASDP will be made in the open market through the facilities of the Toronto Stock Exchange by the Broker in accordance with a pre-determined quarterly sales schedule, and could include circumstances when participants would ordinarily not be permitted to sell their common shares due to restrictions under Canadian securities laws or trading blackouts imposed under the Company's insider trading policy. Participants will be subject to meaningful restrictions on their ability to modify or terminate their participation in the ASDP.

Executives may only participate in the ASDP if they meet minimum share ownership requirements of three times their base salary or, in the case of the President or Chief Executive Officer of the Company or any of its subsidiaries, five times their base salary.

The ASDP is designed to constitute an "automatic plan" for the purposes of applicable Canadian securities legislation and guidance.

About Fortress Paper

Fortress Paper is a leading international producer of security and other specialty papers and products. Fortress operates three mills, the Landqart Mill located in Switzerland, the Dresden Mill located in Germany and the Fortress Specialty Cellulose Mill located in Quebec, Canada. 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. Fortress Paper's pulp business includes NBHK produced at the Fortress Specialty Cellulose Mill with plans to convert this capacity into dissolving pulp production along with the construction of a biomass based cogeneration plant.

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