Crown Vantage Files Third Quarter 10-Q.

OAKLAND, Calif.--(BUSINESS WIRE)--Nov. 13, 1998--In 10-Q reports filed electronically yesterday with the Securities and Exchange Commission, Crown Vantage Inc. (Nasdaq:CVAN) and its subsidiary, Crown Paper Co., said that they are currently in compliance with covenants of their bank credit facility, including minimum quarterly cash-flow-to-debt and interest-coverage ratios and minimum tangible net worth requirements.

Crown said, however, that it has begun the process of renegotiating these debt covenants with its bank group and is confident it will be successful in amending them in order to maintain compliance. The covenants become more restrictive this fourth quarter of 1998 and in the first quarter of fiscal year 1999 revert to the original covenants, which date to the 1995 incorporation of Crown Vantage and are significantly more restrictive, unless they are amended, the company said.

Crown Vantage, which had sales in 1997 of $897 million, manufactures papers for printing, publishing and specialty packaging and converting applications at 10 pulp and paper mills in the United States and Scotland. Crown Vantage information can be found on the Internet at www.crownvantage.com.

This news release contains certain forward-looking statements. While the company believes it will be successful in renegotiating the covenants, there is no assurance that will happen.