Clearwater Paper (CLW) 8-K Regulation FD Disclosure

Clearwater Paper Corporation

September 2012

Exhibit 99.1

1

Forward-Looking Statements

•

•

difficulties with the integration process or the realization of the benefits expected from our acquisition of Cellu Tissue;

•

changes in raw material and energy costs, including changes in the cost and availability of wood fiber and wood pulp;

•

changes in freight costs and disruptions in transportation services;

•

the loss of large customers;

•

customers' product preferences; 

•

changes in the United States and international economies;

•

cyclical industry conditions and changes in manufacturing production;

•

competitive pricing pressure for the company's products;

•

unforeseen environmental liabilities or expenditures;

•

an inability to successfully implement our expansion strategies;

•

labor disruptions;

•

unanticipated manufacturing disruptions;

•

changes in general and industry-specific laws and regulations; and

•

reliance on a limited number of third-party suppliers of raw materials.

Forward-looking statements contained in this presentation present management’s views only as of the date of this presentation. We undertake no obligation to publicly update forward-

looking statements, whether as a result of new information, future events or otherwise.

This presentation contains, in addition to historical information, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of

1995, including statements regarding our strategies to grow our business, optimize profitability and build a high performance culture, North American tissue and

paperboard market demand, expected tissue capacity increases, the expected delivery and budget relating to our new tissue machine and converting lines in Shelby,

North Carolina, expected future savings from cost synergies relating to our Cellu Tissue acquisition, efficiency projects and reductions to our cost structure, future

growth and market opportunities, including in the Midwestern and Eastern U.S. regions and non-grocery channels, market segment dynamics, internal pulp production

and requirements, customer purchases of private label tissue, production capacity of operating divisions and the expected benefit thereof, our capital allocation

objectives, our EBITDA margins, our planned expansion into other product types, our financial priorities, including plans to de-lever through EBITDA expansion and

revenue growth, our estimated Adjusted EBITDA run-rate, free cash flows, our implied enterprise value, equity value and share price, sales volumes, input costs, and

our financial condition and results of operations.  Words such as “anticipate,” “expect,” “intend,” “will,” “plan,”  “goals,” “objectives,” “target,” “project,” “believe,”

“schedule,” “estimate,” “may,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are based on

management’s current expectations, estimates, assumptions and projections that are subject to change. Our actual results of operations may differ materially from

those expressed or implied by the forward-looking statements contained in this presentation. Important factors that could cause or contribute to such differences

include the risk factors described in Item 1A of Part I of our Form 10-K for the year ended December 31, 2011, as well as the following: 

difficulties with the completion of new tissue manufacturing and converting facilities, including the completion of new through-air-dried paper machine;

Agenda

2

I.

Overview of Clearwater Paper

II.

Clearwater Paper’s Value Proposition

III.  Clearwater Paper’s Strategic Plan

3

Overview of Clearwater Paper

4

•

We are a company formed in late 2008 with more than

60 years of operating history

•

Operate two business segments of similar size

–

Pulp and Paperboard: 43% of 2011 net sales

–

Consumer Products: 57% of 2011 net sales

•

Financial overview

–

LTM Net Sales: $1.9 billion

–

LTM

Adjusted

EBITDA

1

:

$213.8

million

–

2008

to

2011

Adjusted

EBITDA

1

CAGR:

38%

•

Approximately 3,900 employees

Introduction to Clearwater Paper

Note: LTM as of 30-Jun-2012

¹

See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure.

5

•

Lead private label quality

•

Expand geographically

•

Expand retail channel penetration

Our Strategy to Create Shareholder Value

•

Improve sales mix

•

Reduce costs

•

Continue to improve quality

•

Develop common culture

•

Drive for results

•

Attract and retain high performers

Optimize Profitability

of Paperboard

Business

Build a High

Performance

Culture

Grow our Tissue

Business

Overview of Consumer Tissue Division

6

Clearwater Paper is one of the largest North American manufacturers of private label tissue, focused on high

value

tissue

products

across

all

categories,

retail

channels

and

geographies

Key Products

Overview of Facilities

2011 U.S. Tissue Industry Retail Channel Mix²

2011 Clearwater Paper Retail Channel Mix²

Clearwater Paper Tissue

Converting

Clearwater Paper Tissue

Parent Roll

Tissue Production¹: 586,000 tons

Tissue Conversion¹: 489,000 tons

Source:  Company estimates, IRI Infoscan

¹

Represents 2011 production and conversion volumes including machine-glazed. 

²

Retail channel share by dollar amount sold.

Grocery

71%

Mass +

Supercenter

16%

Drug

2%

Dollar

11%

Grocery

37%

Mass +

Supercenter

27%

Club

21%

Drug

7%

Dollar

4%

All Other

4%

7

Clearwater Paper is Well Positioned to Capitalize on Favorable

Tissue Market Dynamics

Stable Growth -

The tissue market has grown an average of 2% annually since 1996

Source:

U.S.

Tissue

demand

per

RISI,

U.S.

Population

per

U.S.

Census

Note: Projected U.S. Tissue Demand based on North American tissue demand estimates.

8

Private Label Continues to Capture Market Share in Tissue

Source:

IRI

Infoscan

Clearwater Paper ranks as one of the largest North American private label tissue

manufacturers

2011 U.S. Retail Tissue

Industry Product Mix

13.6%

26.1%

18.0%

27.5%

22.0%

30.0%

29.9%

55.4%

Bath Tissue

Paper Towels

Facial Tissue

Napkins

Private Label Market Share of Total U.S.

Grocery, Drug, Mass (No Walmart) Channels

2003

2011

Bath Tissue

42%

Paper Towels

38%

Facial Tissue

10%

Napkins

10%

9

Significant Opportunity Still Exists for Clearwater Paper To Expand

Across the U.S. Private Label Market

Source:  SymphonyIRI InfoScan, 52 Weeks Ending 22-Jul-2012.  U.S. Census

•

Clearwater

Paper

led

the

development

of

private

label

tissue

in

the

Western

U.S.

•The

Company

is

focused

on

growing

the

private

label

category

and

market

share

in

the

Grocery

West

Midwest

East

Total

Equalized Case Volumes (mm)

37

53

88

178

% of U.S. Population

23%

34%

43%

100%

% Private Label (PL)

41%

26%

25%

28%

% Clearwater Paper of PL

96%

72%

36%

64%

Eastern

U.S.

•

If Clearwater could replicate its West model across the U.S.:

–39%

share

of

grocery

channel

in

Midwest

would

be

an

incremental

11

million

cases

–39%

share

of

grocery

channel

in

East

would

be

an

incremental

26

million

cases

10

Significant Opportunity Also Exists for Clearwater Paper to Expand

in Non-Grocery Channels

Source:  SymphonyIRI InfoScan, 52 Weeks Ending 22-Jul-2012.  U.S. Census

Note: Based on volume of equalized cases.

•

If Clearwater Paper could replicate its total U.S. grocery model

in the U.S.

Drug

and

Mass

channels,

an

18%

market

share

represents

an

incremental

8

million cases

U.S. Drug and Mass

(68mm cases, No Walmart)

Total U.S. Grocery

(178mm cases)

North American Market Demand Expected to Absorb Projected

Capacity Increases

11

Source: RISI and company estimates

Note: Projected capacity changes represents both virgin and recycled tissue capacity changes. Please see Appendix for breakdown of specific projects reflected in the projected capacity changes.

(in thousands of short tons)

2011 Demand to Capacity

Ratio of 97%

2013E Demand to Capacity

Ratio of 97%

9,109

9,400

9,760

9,443

515

105

(260)

2011 Tissue

Demand

2011 Tissue

Capacity

Projected

New Capacity

Projected

Rebuild Capacity

Projected

Shutdown Capacity

Projected 2013

Tissue Capacity

Projected 2013

Tissue Demand

Healthy market dynamics remain intact

Overview of Pulp and Paperboard Division

12

Clearwater

Paper

ranks

as

one

of

the

top

five

largest

paperboard

manufacturers

in

North

America

Key Products

Overview of Facilities

2011E North American Bleached

Paperboard Production by Product Type²

2011E North American Bleached Paperboard

Production by Market Share

Pulp Production¹: 845,000 tons

Paperboard Production¹: 775,000 tons

Clearwater Paper Pulp

Clearwater Paper SBS

Source:  Company estimates, RISI

¹

Represents 2011 production volumes.

²

Represents ~6.0 million tons.

International

Paper

26%

MeadWestvaco

22%

Georgia

Pacific

13%

Evergreen

Packaging

13%

Clearwater

Paper

11%

RockTenn

7%

Weyerhaeuser

5%

Tembec

Paperboard

3%

Folding

42%

Liquid

Packaging

20%

Cup

13%

Plate, Dish

and Tray

11%

Coated

Bristols

10%

All Other

4%

13

Paperboard Demand Remains Stable and Pricing Outlook is

Favorable in the U.S.

Source:  RISI, Projected GDP growth estimates represent Bloomberg median estimates as of 28-Aug-2012

¹

Based on tons produced. Projections based on North American Packaging papers and board demand estimates per RISI.

²

Average price per short ton of 16 pt. SBS folding carton C1S. Price estimates per RISI.

Bleached paperboard prices are expected to remain at attractive levels through 2016

14

Clearwater Paper’s

Value Proposition

Clearwater Paper Leads its Peer Groups in Value Creation…

15

Source: Bloomberg as of 28-Aug-2012

1

Small cap tissue peers include Cascades, Orchids, and Wausau.

²

Paperboard peers include International Paper, Graphic Packaging, Kapstone, MeadWestvaco, RockTenn, Packaging Corp, and Sonoco.

³

Large cap consumer product peers include Kimberly-Clark and Procter & Gamble.

Note. Total Shareholder Return includes dividend reinvestment and stock price performance.

Spin Date

250%+ Total Return Since Spin-off

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

Dec-2008

Jul

-2009

Mar-2010

Oct-2010

May-2011

Jan

-2012

Aug

-2012

Clearwater Paper

Small Cap Tissue¹

Paperboard²

Large Cap Consumer³

S&P 500

258.3%

237.3%

84.7%

57.0%

75.9%

…Through a Proven Track Record of EBITDA Growth

16

($ in millions)

Source: RISI

1

See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure. LTM Adjusted EBITDA as of 30-Jun-2012.

²

Does not include amounts related to the Alternative Fuel Mixture Tax Credit, or AFMTC.

Adjusted EBITDA

1,2

•

We participate in the premier segments of the paper market: Bleached

Paperboard and Tissue

•

Strong integration across business groups creates synergistic value

2008

2009

2010

2011

LTM

$ 75

$ 174

$ 167

$ 196

$ 214

…With Improving Margins

17

1

See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure.

2

Does not include amounts related to the AFMTC.

9.0%

10.6%

9.2%

11.8%

10.1%

14.0%

11.4%

9.8%

13.5%

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Adjusted EBITDA Margin

1, 2

Adjusted EBITDA Margin

Adj. EBITDA Margin Assuming No Planned Major Maintenance

$11.4mm

in

Planned Major

Maintenance

$3.1mm

in

Maintenance

$15.5mm

in

Maintenance

Planned Major

Planned Major

…And Successful Execution on Its Publicly Stated Goals

18

Stated Goal

Timeframe

Current Status

Complete New Paper Machine and

Corresponding Converting Lines at

Shelby, NC Facilities

2010 –

2013

Shelby TAD machine is on budget and on track to begin

operations in Q4 2012  with full capacity run rate by end of 2013

Operating

2

new

converting

lines

at

Shelby

with

3

and

4

lines

to

be

operational

in

Q4

2012

and

a

5

line

expected

in

2013

Successfully Integrate Cellu Tissue

Acquisition

2010 –

2013

Increased anticipated Cellu Tissue run-rate synergies from $15-

20 million per annum to $35-40 million per annum by end of 2012

On track to achieve $28 million in synergies in 2012, up from

initial estimates of $20 million

Expand the Geographic and Channel

Reach of Clearwater Paper

2010 –

Ongoing

Cellu Tissue acquisition and Shelby, NC Facilities give Clearwater

Paper a national footprint with expansion in the Eastern U.S.

Increased penetration in grocery, drug, club and mass retail

markets in the Eastern U.S.

Expansion into away-from-home, parent roll sales, and machine

glazed sales product types

Optimize the Paperboard Business

Ongoing

Enhanced access to fiber supply

Sold Lewiston sawmill

Installed chip screening at Lewiston pulp mill

Maintain a Prudent Capital Structure

Ongoing

Conservative capital structure with target leverage through the

cycle of 2.5x and ample liquidity

Clearwater Paper continues to de-lever through EBITDA

expansion

th

th

rd

…Which Has Led to Multiple Expansion Since the Spin

19

Source: Bloomberg, Capital IQ, market data as of 28-Aug-2012

1

Small cap tissue peers include Cascades, Orchids, and Wausau.

²

Paperboard peers include International Paper, Graphic Packaging, Kapstone, MeadWestvaco, RockTenn, Packaging Corp and Sonoco.

³

Large cap consumer product peers include Kimberly-Clark and Procter & Gamble.

Spin Date

6.0x

6.9x

7.0x

10.4x

0x

2x

4x

6x

8x

10x

12x

Dec

-2008

May

-2009

Oct-2009

Mar

-2010

Aug-2010

Jan

-2011

Jun

-2011

Oct-2011

Mar

-2012

Aug-2012

Clearwater Paper

Small Cap Tissue¹

Paperboard²

Large Cap Consumer Products³

Strong

upward trend in multiple over time

…And Multiple Growth Rate Higher than Industry

20

Source: Bloomberg, Capital IQ, market data as of 28-Aug-2012

Note: Represents current 1-year forward EBITDA multiple divided by forward 1-year EBITDA at 15-Jan-2009 less 100% (first reported IBES EBITDA estimate per Capital IQ).

1

Small cap tissue peers include Cascades, Orchids, and Wausau.

²

Paperboard peers include International Paper, Graphic Packaging, Kapstone, MeadWestvaco, RockTenn, Packaging Corp and Sonoco.

³

Large cap consumer product peers include Kimberly-Clark and Procter & Gamble.

93.6%

16.9%

37.8%

16.5%

Clearwater Paper

Small Cap Tissue¹

Paperboard²

Large Cap Consumer Products³

Change in 1-Year Forward EBITDA Multiple Since Clearwater Spin

•

One of the largest premium private label tissue and bleached paperboard

producers in North America

•

Attractive, growing and stable tissue market with increasing adoption of private

label products driving overall market growth

•

Strong competitive position in stable bleached paperboard market

•

Strategic capital investments, lean optimization initiatives and

ongoing

integration synergies driving revenue growth and margin expansion

•

Track record of robust adjusted EBITDA growth with a 38% CAGR

1

over 2008-

2011, supported by a conservative financial profile

21

¹

Based on 2008 -2011 adjusted EBITDA.

The Value Proposition for Clearwater Paper Shareholders

22

Clearwater Paper’s

Strategic Plan

Clearwater Paper’s Strategic Plan

•

The Board and Management conducted an extensive evaluation and analysis of numerous

opportunities to enhance shareholder value, including S.A.C.’s proposal, over the past three

months, with the help of Goldman Sachs, legal, tax and other outside advisors

•

This analysis incorporated a number of important factors, including:

–

The benefits of key growth initiatives such as the Shelby ramp-up, Cellu Tissue integration

and cost-savings plan

–

Disruption and real economic cost of launching a public M&A process in an uncertain market

–

Economic leakage such as taxes and debt breakage costs for separating business divisions

–

Feasibility of separating our integrated Lewiston facilities into two distinct entities

•

The Board

and

Management

concluded

that

execution

of

the

current

Clearwater

Paper

strategic plan will deliver significant shareholder value in excess of other potential alternatives

•

Clearwater Paper’s Board and Management team remain focused on identifying, analyzing and

exploring all paths to deliver value to our shareholders and will continue to do so

23

24

•

Provides a 70,000 ton TAD paper machine and tissue converting facility capable of

producing ultra grades of private label bath tissue and paper towels

•

Upgrade Las Vegas TAD paper machine to produce bath and towels to support regional

needs

•

Expands the company's TAD geographic footprint

•

Expected to provide financial benefits to the company and our shareholders

–

Projected after tax IRR for this project are approximately twice

the company’s cost of capital

–

Estimated Adjusted EBITDA

run-rate contribution of $50 –

60 million expected to be achieved

in 2014

Significant Benefits Expected from the Shelby Project

Timeline of Key Shelby Milestones

¹

See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure.

•Shelby project

announced

•Shelby warehouse

completed

•2 initial converting lines

completed

•Construction and

completion of new

paper machine

•Completion of additional

2 converting lines

•Ramp up of initial 2

converting lines

•New paper machine

expected to be at

capacity by year end

•Expected ramp up of 3

and 4   converting lines

•Start-up and ramping of

5   converting line

anticipated

•Entire facility expected

to be fully operational

by year end

2010

2011

2012

2013

2014

1

th

th

rd

Better than Expected Benefits from the Cellu Tissue Integration

•

Cellu Tissue integration is currently on track and we expect to fully integrate Cellu Tissue

operations by end of 2012

•

We anticipate that the company will recognize $28 million of synergies in 2012 with annual

run

rate

synergies

of

$35

-

$40

million

by

end

of

2012

•

Benefits of acquisition include:

–

Cellu Tissue acquisition has enabled us to compete in the Eastern U.S. paper production

market and pursue our national sales strategy

–

Ability to service all tissue tiers and away-from-home tissue market

–

As compared to 2010 (including Cellu tissue sales in 2010), we had retail customer growth

of 13% in case sales in 2011 along with 9% lower parent roll sales

25

Originally

Forecast

Synergies

Revised 2012

Estimates

$3.0 M

$5.0 M

$4.0 M

$8.0 M

$5.3 M

$6.7 M

$7.4 M

$8.6 M

Q1’12

Q2’12

Q3’12

Q4’12

Projected Pulp Price Decreases Should Contribute to Strong

EBITDA Growth

26

Significant Value Associated with the Integrated Lewiston Site

•

Lewiston

facility

produces

534,000

tons

of

pulp,

443,000

tons

of

paperboard

and

189,000

tons

of

tissue

•

Represents 64%, 58% and 32% respectively of the company’s total production of pulp, paperboard and tissue

•

Lewiston operations share an 840 acre manufacturing site

27

•

Environmental permitting challenges

•

Direct pulp feeds for slush to tissue machines and

baled pulp dependent upon secure pulp agreement

•

Interconnections and utilization issues for utilities

such as electricity, natural gas, steam, return steam

condensate, water and water treatment/effluent

discharge

•

Site services such as road and rail access, security,

fire protection, medical services, environmental and

other administrative functions

•

Pulp risk mitigation with internal slush pulp

consumption and reduced costs due to no drying or

distribution costs

•

Site synergies for utilities:

–

No additional infrastructure needed for steam

production for tissue

–

On site electrical generation and single input

infrastructure for electrical needs

–

Single input infrastructure for natural gas needs

–

Single input infrastructure for water, water

treatment/effluent discharge

–

Other site services reducing exposure to outside

providers

•

Baled pulp production available for other internal

tissue sites

Integration Benefits

Separation Issues

•

Dividing the

Lewiston

site

would

destroy

a

significant

amount

of

integration

value

•

Based on a number of prior analyses, separation is not economically feasible

Our Efficiency Projects Are Poised to Deliver to the Bottom Line

•

Sale of Wood Products operations with a secure fiber agreement expected to improve

annual operating income by $5-$8 million

•

Implementation of 18 month maintenance cycle at Lewiston pulp and paperboard facility

expected to improve annual costs beginning in 2013 by approximately $5 million

•

Ongoing energy utilization projects

•

Fiber management initiatives like the Lower Columbia reload facility which opened up

access to a new wood fiber supply for the Lewiston pulp and paperboard facility

•

Continue driving Lean initiatives company wide

28

Key Initiatives Expected to Significantly Improve Earnings Power

29

($ in millions)

Shelby

Ramp-up

•

Expected

benefit from

full ramp-up of

TAD paper

machine, 5

converting

lines and LV

PM Upgrades

Realization of Full

Cellu Tissue

Synergies

•

Incremental

savings

expected from

Cellu Tissue

acquisition

Cost

Savings

Programs

•

Expected benefit

from

lean

manufacturing

and cost optimization

initiatives

Note: Assumes no change in prices or input costs from 2011.

¹

See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure.

2

Defined as Adjusted EBITDA less Capex of $138 million.

3

Defined as Adjusted EBITDA less expected Capex of $75 million.

…And Drive Value Creation for Shareholders

30

¹

Note: See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measure

2

Net debt as of 30-Jun-2012.  Excludes any debt paydown that would take place between now and cross-cycle.

³

Diluted shares outstanding as of 30-Jun-2012. Assumes 23.3 million basic shares, 0.2 million RSUs and 0.8 million PSUs.

($ in millions, except per share data)

EBITDA Multiple

6.0

x

7.0

x

8.0

x

$

300

$

300

$

300

Value

$

1,800

$

2,100

$

2,400

Implied Enterprise Value

$

1,800

$

2,100

$

2,400

Less: Net Debt

²

$(488)

$(488)

$(488)

Implied Equity Value

$

1,312

$

1,612

$

1,912

Shares Outstanding

³

24.2

24.2

24.2

Implied Share Price

$

54.28

$

66.70

$

79.11

Pro Forma Adjusted EBITDA  Run Rate

1

Core Strategy to Drive Shareholder Value

•

Continue to capitalize on our position as one of the largest premium private

label tissue and bleached paperboard producers in North America

•

Take advantage of the attractive tissue market and the recent trend of

increasing adoption of private label products

•

Benefit from our strong competitive position, and drive value from the bleached

paperboard market

•

Meet or exceed our targets for cost savings and integration synergies

•

Continually analyze all opportunities to create shareholder value

•

Build upon our positive track record of prudent investment and robust EBITDA

growth

31

32

Appendix

33

Reconciliation of GAAP to Non-GAAP:

Clearwater Paper EBITDA and Adjusted EBITDA

1

See definitions of EBITDA and Adjusted EBITDA in this Appendix.

($ in millions)

2008

2009

2010

2011

LTM

Net Earnings

$9.7

$182.5

$73.8

$39.7

$45.4

Income Tax Provision

5.6

93.2

2.4

31.2

42.5

Interest Expense

13.1

15.5

22.6

44.8

41.4

Earnings Before Interest and

Income Taxes

28.5

$291.2

$98.8

$115.7

$129.2

Depreciation & Amortization

47.0

47.4

47.7

76.9

78.6

EBITDA

1

$75.4

$338.6

$146.5

$192.7

$208.0

Alternative Fuel Mixture Tax

Credit

-

(170.6)

-

-

-

Debt Retirement Costs

-

6.2

-

-

-

Cellu Tissue Acquisition Related

Expenses

-

-

20.3

-

-

Lewiston, Idaho Sawmill Sale

Related Adjutsments

-

-

-

2.9

2.9

Loss on sale of foam assets

-

-

-

-

1.0

Expenses associated with Metso

litigation

-

-

-

-

1.9

Adjusted EBITDA

$75.4

$174.3

$166.8

$195.5

$213.8

1

34

Reconciliation of GAAP to Non-GAAP:

Clearwater Paper Pro Forma Adjusted EBITDA

($ in millions)

1

See definitions of EBITDA and Adjusted EBITDA in this Appendix.

Shelby

Cellu

Tissue

Synergies

Cost

Optimization

Pro Forma

Adjusted

EBITDA

Operating Income

$37.0

$35.0

$16.0

$210.0

Depreciation & Amortization

13.0

-

3.0

90.0

EBITDA

$50.0

$35.0

$19.0

$300.0

-

-

-

-

Adjusted EBITDA

$50.0

$35.0

$19.0

$300.0

1

1

35

Definitions of Non-GAAP Measures

Clearwater Paper Definitions of Non-GAAP Measures

EBITDA

is a non-GAAP measure that Clearwater Paper management uses to evaluate the cash generating capacity of Clearwater Paper. The

most directly comparable GAAP measure is net earnings.  EBITDA, as defined by Clearwater Paper management, is net earnings adjusted for net

interest expense, income

taxes,

and

depreciation

and

amortization.

It

should

not

be

considered

as

an

alternative

to

net

earnings

computed

under

GAAP.

Adjusted EBITDA

is a non-GAAP measure that Clearwater Paper management defines as EBITDA adjusted for items that we do not believe are

indicative of our core operating performance, including acquisition and disposition related expenses, alternative fuel mixture tax credits and

expenses associated with the Metso litigation.  The most directly comparable GAAP measure is net earnings.  It should not be considered as an

alternative to net earnings computed under GAAP.

North American Tissue Projected Capacity Change

36

Source:  RISI and Other Industry

COMPANY

LOCATION

CONV/TAD

TONS

STARTUP DATE

CHANNEL/BUSINESS/PRODUCTS

First Quality

Anderson, SC

TAD

70,000

3rd Q, 2012

Retail/P.L./BRT

Patriarch Partners

Gorham, NH

CONV

35,000

3rd Q, 2012

Retail/P.L.

ST Paper

Franklin, VA

CONV

70,000

3rd Q, 2012

Parent Roll Sales/Recycled

Clearwater Paper

Shelby, NC

TAD

70,000

4th Q, 2012

Retail/P.L./BRT & HHT

Kruger

Memphis, TN

TAD

70,000

1st Q, 2013

Retail/Brand/P.L.

Wausau Paper

Harrodsburg, KY

ATMOS

70,000

1st Q, 2013

AFH/Recycled

South Georgia Tissue

Snelling, SC

CONV

35,000

2nd Q, 2013

Parent Roll Sales/Virgin

Procter and Gamble

Box Elder, UT

TAD

80,000

3rd Q, 2013

Retail/Brand/Bounty

Florelle Tissue

Brownville, NY

CONV

15,000

2013

Retail/P.L./Virgin Fiber

TOTAL PROJECTED NEW TONS

515,000

COMPANY

LOCATION

CONV/TAD

TONS

DATE

CHANNEL/BUSINESS/PRODUCTS

Kimberly-Clark

Everett, WA

CONV/UCTAD/DRC     

(All 5 PM)

193,000

1st Q, 2012

Retail/AFH/PL-Club/Parent Roll

Sales

Kimberly-Clark

Chester, PA

CONV (PM #16)

27,000

1st Q, 2012

Napkin/BRT

Kruger

New Westminster

PM#1 & #2

40,000

1st Q, 2012

Napkin/BRT

TOTAL PROJECTED TONS LOST

260,000

PROJECTED NET CHANGE

255,000

COMPANY

LOCATION

CONV/TAD

TONS

RESTART DATE

CHANNEL/BUSINESS/PRODUCTS

Georgia Pacific

Port Hudson, LA

ETAD

35,000

4th Q, 2012

Retail/Brand & P.L./HHT & BRT

SCA

Menasha, WI

ATMOS (PM#3)

70,000

2nd Q, 2013

AFH

REBUILDS

ANNOUNCED SHUTDOWNS

ANNOUNCED NEW PAPER MACHINES