1296435--3/12/2009--Neenah_Paper

related topics

{debt, indebtedness, cash}

{cost, regulation, environmental}

{cost, operation, labor}

{competitive, industry, competition}

{tax, income, asset}

{product, market, service}

{customer, product, revenue}

{financial, litigation, operation}

{cost, contract, operation}

{operation, international, foreign}

{stock, price, share}

{stock, price, operating}

{acquisition, growth, future}

{control, financial, internal}

Risks Related to Our Business and Industry Our business will suffer if we are unable to effectively respond to decreased demand for some of our products Our operating results are likely to fluctuate. We face many competitors, several of which have greater financial and other resources. The availability of and prices for raw materials and energy will significantly impact our business. We cannot be certain that our net operating losses ( will continue to be available to offset our tax liability and other tax positions may not be effective. We have significant obligations for pension and other postretirement benefits. The outcome of legal actions and claims may adversely affect us. Labor interruptions would adversely affect our business. We may fail to realize the anticipated cost savings, revenue enhancements and other benefits expected from our acquisitions or from the planned timberlands sale which could adversely affect the value of our shares of common stock. Future dividends on our common stock may be restricted or eliminated. Fluctuations in currency exchange rates could adversely affect our results. We have guaranteed the performance of Northern Pulp under the terms of a pulp supply agreement with Kimberly-Clark (the Pulp Supply Agreement ). The failure of Northern Pulp to perform under Pulp Supply Agreement could require us pay damages to Kimberly-Clark if they are unable to purchase pulp at prices less than or equal to those specified in the Pulp Supply Agreement. Our activities are subject to extensive government regulation, which could increase our costs, cause us to incur liabilities and adversely affect the manufacturing and marketing of our products. Risks Relating to Our Indebtedness We may not be able to fund our future capital requirements internally or obtain third-party financing. We may not be able to generate a sufficient amount of cash flow to meet our debt obligations, including the notes. We have significant indebtedness which subjects us to restrictive covenants relating to the operation of our business. Our failure to comply with the covenants contained in our revolving credit facility or the indenture governing the notes could result in an event of default that could cause acceleration of our indebtedness. Despite our indebtedness levels, we and our subsidiaries may be able to incur substantially more indebtedness, which may increase the risks created by our substantial indebtedness. Our revolving credit agreement is secured by a majority of our North American assets. We depend on our subsidiaries to generate cash flow to meet our debt service obligations, including payments on the notes.

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1296435--3/12/2009--Neenah_Paper_Inc