Market Overview

Clearwater Paper Announces Sale of Ladysmith, Wisconsin Facility to Dunn Paper, Inc.

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Clearwater Paper Corporation (NYSE:CLW) (the "Company") today
announced the Company has sold its Ladysmith, Wis. facility to Dunn
Paper, Inc. for approximately $72 million. The Company intends to
use the net proceeds to help fund the expansion of our Shelby, N.C.
facility and opportunistically pay down debt.

"In our Consumer Products business, our strategy is focused on network
optimization to match the growing demand for the ultra-quality segments
of the tissue category. As a result, we elected to sell our Ladysmith
facility, which manufactures recycled paper and does not align with that
strategy," said Linda K. Massman, president and chief executive officer.

"On behalf of Clearwater Paper, we sincerely thank the Ladysmith team
for their hard work and commitment to providing our customers with
high-quality products and services," said Massman.

Effective today, Ladysmith employees are now employees of Dunn Paper.

"Ladysmith is a critical piece of our strategic growth at Dunn," said
Brent Earnshaw, chief executive officer of Dunn Paper. "The additional
capacity at Ladysmith will enable faster growth in the specialty
tissue/absorbent market and their recycled fiber source is well suited
for a variety of applications within the Dunn portfolio."

B Riley FBR advised Clearwater Paper on the sale of the Ladysmith
facility. Pillsbury Winthrop Shaw Pittman LLP acted as legal advisor to
Clearwater Paper.

ABOUT CLEARWATER PAPER

Clearwater Paper manufactures quality consumer tissue, away-from-home
tissue, parent roll tissue, bleached paperboard and pulp at
manufacturing facilities across the nation. The company is a premier
supplier of private label tissue to major retailers and wholesale
distributors, including grocery, drug, mass merchants and discount
stores. In addition, the company produces bleached paperboard used by
quality-conscious printers and packaging converters, and offers services
that include custom sheeting, slitting and cutting. Clearwater Paper's
employees build shareholder value by developing strong customer
partnerships through quality and service.

ABOUT DUNN PAPER

Dunn Paper is a premier manufacturer of high-performance, advanced paper
materials for lightweight technical food packaging and tissue products
throughout North America. Dunn currently manufactures products at six
locations across the Midwest, East Coast, and Ontario, Canada. Dunn
Paper is a portfolio company of Arbor Investments, a Chicago-based
private equity firm.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 as
amended, including, but not limited to the Company's use of net
proceeds, Shelby, N.C. expansion, debt payoff, strategy, network
optimization, and tissue products and demand. These forward-looking
statements are based on current expectations, estimates, assumptions and
projections that are subject to change, and actual results may differ
materially from the forward-looking statements. Factors that could cause
actual results to differ materially include, but are not limited to:
competitive pricing pressures for the Company's products, including as a
result of increased capacity as additional manufacturing facilities are
operated by the Company's competitors; the loss of or changes in prices
in regards to a significant customer; changes in customer product
preferences and competitors' product offerings; the Company's ability to
successfully implement its operational efficiencies and cost savings
strategies, including related capital projects; the Company's ability to
execute on its growth and expansion strategies, including on-time
completion of the Company's planned new tissue manufacturing and
converting operations in Shelby, N.C.; customer acceptance and timing
and quantity of purchases of the Company's tissue products, including
the existence of sufficient demand for and the quality of tissue
produced by the expanded Shelby, N.C. operations when they are
completed; changes in the U.S. and international economies and in
general economic conditions in the regions and industries in which the
Company operates; labor disruptions; changes in transportation costs and
disruptions in transportation services; changes in the cost and
availability of wood fiber and wood pulp; manufacturing or operating
disruptions, including IT system and IT system implementation failures,
equipment malfunction and damage to the Company's manufacturing
facilities; changes in costs for and availability of packaging supplies,
chemicals, energy and maintenance and repairs; cyclical industry
conditions; changes in expenses and required contributions associated
with the Company's pension plans; environmental liabilities or
expenditures; cyber-security risks; reliance on a limited number of
third-party suppliers for raw materials; the Company's inability to
service its debt obligations; restrictions on the Company's business
from debt covenants and terms; changes in laws, regulations or industry
standards affecting the Company's business; and other risks and
uncertainties described from time to time in the Company's public
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year ended December 31, 2017. The
forward-looking statements are made as of the date of this press release
and the Company does not undertake to update any forward-looking
statements based on new developments or changes in the Company's
expectations.

For additional information on Clearwater Paper, please visit our
website at
www.clearwaterpaper.com.

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