Crown Vantage Successfully Amends Bank Debt Covenants.

OAKLAND, Calif.--(BUSINESS WIRE)--Feb. 26, 1999--Crown Vantage Inc. (Nasdaq:CVAN) said today it has successfully renegotiated its bank credit facility debt covenants for all of 1999.

Without these amendments, the covenants would have reverted to their original, significantly more restrictive levels set at the peak of the paper market cycle in 1995 at the incorporation of Crown Vantage, the company said. Amendments have been negotiated for each of the last two years.

"Again, Crown Vantage appreciates the ongoing support of its bank group," said President and Chief Executive Officer Robert A. Olah. "The extended weakness in paper markets has made it more difficult to generate the cash flow required to achieve the original financial covenants. The continued cooperation of the banks is recognition that Crown Vantage can manage both its capital and operations responsibly despite these difficult conditions."

The original bank facility totaled $350 million, of which $104 million has been repaid.

Crown Vantage, which had sales in 1998 of $851 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.