SMART Papers Acquired by Plainfield Asset Management, Now Expanding Operations

HAMILTON, OH—January 3, 2007—SMART Papers today announced it has a new owner, Plainfield Asset Management of Greenwich, Conn., and is expanding production on all three papermaking machines at its Hamilton, Ohio, manufacturing center.

With fresh capitalization and ownership, the company said it is now producing its full line of premium cast-coated, matte-coated and uncoated text, cover and writing papers. SMART Papers employs 520 in various manufacturing, sales, customer service and management positions, primarily in Hamilton, north of Cincinnati.

“SMART Papers has a rich history and well-established brands that bring unique value and benefit to the North American printing industry and their customers,” said Eric Reehl, Managing Director at Plainfield Asset Management and board member of the new SMART Papers.

“With disciplined production of branded products and an intense focus on customer needs, we believe SMART Papers is on its way to reclaiming its role as a top supplier in the North American premium paper markets,” Reehl added. “We believe that with Plainfield’s commitment and deep resources, SMART Papers will be positioned to take advantage of the changes underway in the printing papers market.”

SMART Papers’ premium coated and uncoated papers are used daily by large, mid-size and small commercial printers and other customers. Product is available to nearly all North American cities in two business days or less from its distribution centers in Hamilton and metropolitan Los Angeles.

SMART Papers CEO and President Tim Needham said the company owes its recent exit from Chapter 11 creditor protection—its renewed viability and jobs—to Plainfield, an investment advisory firm with more than $2 billion in capital.

“We literally wouldn’t be here without their support, and without the support of our dedicated employees,” Needham said. He also thanked customers for their patience through the company’s reorganization, which was approved by a federal judge December 19.

Needham said SMART Papers is now well capitalized to expand sales and distribution of its products to North American paper merchants, printers, designers and corporations. The company has capacity to produce 120,000 tons of paper annually on its three paper machines and 22 casting drums.

About SMART Papers
SMART Papers is the largest independent North American manufacturer and marketer of premium cast-coated, matte-coated and uncoated printing, text, cover and writing papers. The company markets a wide range of premium papers, including the well-known brands of Kromekote®, Knightkote® Matte, SMART Digital™, Pegasus®, Carnival®, Synergy®, Passport®, Genesis®, Benefit®, Magna Carta® and SMART Brights®.

About Plainfield Asset Management
Based in Greenwich, Connecticut, Plainfield Asset Management is an investment advisor registered with the Securities and Exchange Commission. Plainfield manages in excess of $2 billion of investment capital for institutions and high net worth individuals based in the United States and abroad. The firm was founded in February 2005 by Max Holmes, and the Plainfield Special Situations Master Fund was launched in May 2005.