Fortress Paper Ltd.

Fortress Paper Ltd.

March 29, 2011 09:00 ET

Fortress Paper Served With Statement of Claim

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2011) -


Fortress Paper Ltd. ("Fortress Paper" or, the "Company") (TSX:FTP) today announced that Sateri (Shanghai) Management Limited and Sateri International (Singapore) Pte. Ltd. (together, "Sateri") have filed a statement of claim with the Supreme Court of British Columbia against Fortress Paper, its wholly owned subsidiary, Fortress Specialty Cellulose Inc. ("FSC"), and an officer of FSC (a former employee of Sateri). Sateri, an industry competitor to the Company, is seeking, among other things, an injunction to cease the alleged use of its unspecified confidential information. Fortress Paper believes the claim is frivolous, vexatious and entirely without merit and intends to defend it vigorously.

About Fortress Paper

Fortress Paper is a leading international producer of security and other specialty papers and products. Fortress Paper 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.

This press 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, including statements regarding the outcome of litigation. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks relating to the ability of Fortress Paper to successfully defend claims against it, and other risk factors listed from time to time in the Company's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements, which are qualified in their entirety by this cautionary statement. 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.

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