Ampad Reports Strong Sales, Industry Recognition; New Capital Infusion Strengthens Financial Position.

Business Editors

PLANO, Texas--(BUSINESS WIRE)--July 31, 2002

American Pad & Paper LLC ("Ampad"), which produces and markets some of the country's leading lines of office products, is reporting strong year-over-year sales for the nine months ended June 30, 2002.

During a time that the industry reported flat to negative growth, sales from comparable products have achieved high-single digit increases over the same period last year. Further, sales for the quarter ending June 30 experienced a double-digit increase over the same period in 2001.

Mark Lipscomb, President and CEO, stated, "These strong sales results, particularly against the backdrop of overall industry metrics, speaks highly of both the quality and the service associated with Ampad's writing pads, envelopes, filing products and specialty papers."

The world's largest retailer, Wal-Mart, recently recognized, Ampad's commitment to customer satisfaction by selecting Ampad from hundreds of other vendors in its division to receive the coveted "Supplier Award of Excellence" for Wal-Mart's first fiscal quarter of 2002. The award recognizes Ampad's high level of excellence and achievement in all aspects of its business relationship with Wal-Mart. Specifically contributing to the award were strong sales increases in three product categories: filing, envelopes and writing pads; achieving targeted in-stock levels through a co-managed inventory replenishment system; and developing a successful promotional program for a seasonal product.

In other news, the company reported it recently received a capital infusion of $3 million from an outside source. This new capital will be used to support Ampad's current growth plans. While details of the transaction remain private, it clearly represents a validation of Ampad's inherent value and an investment in its future success.

Ampad is a leading manufacturer and distributor of writing pads, filing supplies, retail envelopes and specialty papers and serves many of the largest and fastest growing office products retailers and distributors in North America. Additional information is available on the Company's website at www.ampad.com.