American Pad & Paper Announces Appointment of Chief Operating Officer.

DALLAS--(BUSINESS WIRE)--May 10, 1999--

American Pad & Paper Company (OTC BB:AMPP) (AP&P) announced today that it has named William L. Morgan as Chief Operating Officer (COO).

Mr. Morgan, 59, joined American Pad & Paper in July 1998 as Executive Vice President, Operations. In his new position as COO, Mr. Morgan will focus on the day-to-day business operations for manufacturing, marketing, sales, purchasing, logistics, information systems, new product development and operational finance/accounting functions.

Mr. Morgan has over 35 years manufacturing and operations experience with both publicly traded multi-national manufacturing companies and large-scale entrepreneurial companies, in fast growth industries. His most recent position prior to joining AP&P was President, Transmission, Connection and Broadband Systems, with Northern Telecom. Prior to this assignment he held numerous senior executive positions with Fujitsu, Memorex, and Texas Instruments.

"Bill is an experienced problem-solving executive with a proven track record of building strong, highly motivated organizations," said James W. Swent III, Chief Executive Officer of AP&P. "Bill will be the focal point for the Company's day-to-day operations, and his appointment as COO will ensure that the efforts of sales and manufacturing are closely coordinated. This is key as we continue execution of our plant rationalization plan, and new product development efforts."

American Pad & Paper Company is a leading manufacturer and marketer of paper-based office products in North America. Product offerings include envelopes, writing pads, file folders, machine papers, greeting cards and other office products. The key operating divisions of the Company are Williamhouse, AMPAD, and Creative Card. Company revenues in 1998 were $662 million.