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SPECIALTY PAPERBOARD ANNOUNCES PURPORTED CLASS ACTION COMPLAINT

 BRATTLEBORO, Vt., July 13 /PRNewswire/ -- Specialty Paperboard Inc. (NASDAQ:SPBI), a producer of special paper grades used in the manufacture of office products, book covers and gaskets, announced today that it has been named as a defendant in a purported class action complaint filed in the U.S. District Court in Vermont.
 The complaint claims that misrepresentations were made in connection with Specialty Paperboard's initial public offering in March 1993 and purports to be on behalf of persons who purchased the company's stock between the initial public offering date and June 1, 1993. Causes of action are alleged under Sections 11 and 12(2) of the Securities Act of 1933 and 10(b) of the Securities Exchange Act of 1934.
 "This complaint was triggered by a decline in the price of the company's common stock following our public disclosure on June 1 that the company's results for the quarter ended June 30 were going to be below expectations," said Alex Kwader, Specialty Paperboard president and chief executive officer.
 "In our June 1 news release, we fully outlined an external change in business conditions that was impacting our short-term earnings potential,"
Kwader explained. "This company has consistently lived up to its disclosure obligations under the securities law and will continue to do so.
 "Complaints such as this one are a predictable fact of life for public companies," he added. "Unfortunately, it has become a trend to file suit against a company that experiences a significant decline in stock price regardless of the reason. We will fight these unwarranted claims vigorously and believe that we will prevail."
 In addition to the company, several individuals were also named as defendants including corporate officers Alex Kwader, president and chief executive officer; Bruce P. Moore, vice president and chief financial officer; and K. Peter Norrie, chairman of the board of directors. Also named were George E. McCown, David E. De Leeuw, Jon H. Miller, and Wayne T. Stephens, directors; and Boise Cascade Corp.
 Specialty Paperboard, which had 1992 revenues of $84.2 million, manufactures office products materials which are converted by its customers into products such as databinders, report covers, ring binders and file and index guides. The company also produces latex reinforced book cover and gasket materials.
 /CONTACT: Bruce Moore, vice president and chief financial officer, Specialty Paparboard, 802-257-5902, or Dolores Chenowth, investor relations counsel, of in.ves'com, 503-221-2087, for Specialty Paperboard/


CO: Specialty Paperboard Inc. ST: Vermont IN: PAP SU:

JH -- SE008 -- 1049 07/13/93 16:46 EDT
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Publication:PR Newswire
Date:Jul 13, 1993
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