Kruger Products Completes the Redemption of Its Outstanding $175 Million Principal Amount of 8.0% Senior Unsecured Notes

MISSISSAUGA, ONTARIO--(Marketwired - Sept. 30, 2015) -

NOT FOR DISTRIBUTION IN THE U.S.A. OR OVER U.S. WIRE SERVICES

KP Tissue Inc. ("KPT") (TSX:KPT) announced today that Kruger Products L.P. ("KPLP") completed the previously announced redemption of its outstanding $175 million principal amount of 8.0% senior unsecured notes (the "Notes").

The redemption of the Notes was financed by funds made available through an increase to KPLP's existing credit facility from $125 to $300 million, which had been announced as a condition to the redemption of the Notes. All accrued and unpaid interest on the Notes to but excluding September 30, 2015, was also paid in connection with the redemption.

About KP Tissue Inc.

KP Tissue Inc. (KPT) was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP. For more information visit www.kptissueinc.com.

About Kruger Products L.P.

KPLP is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. KPLP serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties® and White Swan®. In the U.S., KPLP manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. KPLP has approximately 2,500 employees across North America and operates five FSC® CoC- certified mills (FSC® C104904), four of which are located in Canada and one in the US. For more information visit www.krugerproducts.ca.