Graphic Packaging Holding Company Combines Certain Businesses with Delta Natural Kraft

Combination creates North America's only vertically integrated multi-wall bag business Graphic Packaging owns 87% of combined business and will consolidate its results Newly added companies recorded trailing annual revenues of approximately $150 million Transaction does not impact Graphic Packaging's net leverage ratio Combination expected to yield $20-25 million in synergy opportunities and be accretive to earnings per share by 2013 Graphic Packaging Holding Company

today announced the combination of its multi-wall bag and specialty plastics packaging businesses with the kraft paper and multi-wall bag businesses of Delta Natural Kraft, LLC and Mid-America Packaging, LLC, both wholly owned subsidiaries of Capital Five Investments, LLC. "We are excited about combining our multi-wall bag and specialty plastics packaging assets with those of Delta Natural Kraft and Mid-America Packaging," said David Scheible, Graphic Packaging's president and chief executive officer. "The combined entity further strengthens our position as a provider of these products, while vertically integrating our converting assets with the kraft paper production capacity of Delta Natural Kraft. The combination will allow us to better serve our customers through the expanded operations, yield numerous synergy opportunities, and position us well for a rebound of the end markets served by these products. We are also pleased to have Mark Van Dame, chief executive officer of Delta Natural Kraft and Mid-America Packaging, and his leadership team join the Graphic Packaging family."