Crown Vantage CEO Tells Shareholders At Annual Meeting Of Strategic Shift To Specialty Papers Focus To Improve Shareholder Value.

OAKLAND, Calif.--(BUSINESS WIRE)--April 29, 1999--

At the annual meeting yesterday of Crown Vantage Inc. (Nasdaq:CVAN), President and Chief Executive Officer Robert A. Olah reviewed significant accomplishments of 1998 for shareholders in attendance and described his long-term vision for the company. The complete audio of the CEO's remarks will be available on the internet at www.crownvantage.com later today.

"Although there was little we could do about pricing in 1998, we worked hard to improve our cost structure," Olah said. "Besides lower pulp costs, the contributors included lower energy costs from both a decline in natural gas costs and more favorable energy contracts, and from lower chemicals usage and cost. We reduced waste in our pulp and paper production and improved productivity."

Olah also cited a work force reduction in 1998 of seven percent, with the full cost benefit being realized in 1999. "The discipline and culture change required for these cost-control accomplishments will serve us well as the markets improve."

Olah addressed the future of the company over the next five years, saying, "I see us building on our reputation as a good specialty papers company and moving into a leadership position in both specialty packaging and converting papers and specialty printing papers, looking for the niches that we uniquely can fill."

While being very flexible and responsive to customers as well as quick in the marketplace, "our strengths will be in sales and marketing as we design products and services to meet each customer's needs," Olah said.

"And I see our company growing and increasing market share in the high-value niches we choose to target, first by accelerating sales using existing resources, by developing additional strategic alliances and partnerships and, as we de-leverage, through acquisitions or mergers. Crown Vantage can do these things, can be the market leader, and we've begun the drive toward that vision," Olah concluded.

Separately, Standard & Poor's said today that based on recent performance and current market conditions the rating agency has removed the company from credit watch and downgraded the company's credit rating one category to a B rating.

"We're confident our movement toward a specialty papers strategy will strengthen our financial situation. The announced sale of our New Hampshire pulp and paper mills expected to close later this quarter is a major step in this direction," Olah commented.

As the CEO told shareholders yesterday, "As we move ahead in 1999, Crown Vantage is prepared with a strong organization and market-driven strategy to do all in its power to improve its financial position and increase value to shareholders."

Crown Vantage, headquartered in Oakland, markets papers for printing, publishing and specialty packaging and converting applications that are made at its 10 pulp and paper mills in the United States and Scotland. Crown Vantage information can be found on the internet at www.crownvantage.com, where users can also link to the company's marketing sites to request samples or make online purchases of uncoated printing papers such as Graphika(R), Brightwater(R), and the Curtis(R) Collection. The company had net sales in 1998 of $851 million.

This news release contains certain forward-looking statements concerning Crown Vantage's positioning for the future. As required by the Private Securities Litigation Reform Act of 1995, the company advises that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those stated or inferred. These could include inability to gain appreciable benefit from executing a strategy focused on the sales and marketing of specialty paper products, failure of paper market conditions to improve, or inability to complete the sale of the New Hampshire facilities.