KRUGER INC. SUBSIDIARY ANNOUNCES ACQUISITION OF THE RIGHT TO ACQUIRE ADDITIONAL COMMON SHARES OF KP TISSUE INC.

MONTRÉAL, April 17, 2023 /CNW/ - 13582141 Canada Inc. ("13582141 Canada"), a wholly-owned subsidiary of Kruger Inc., announced today that it has acquired 1,099,616 class B common shares ("KPI Shares") of Kruger Products Inc. ("KPI"), which are exchangeable for common shares ("Common Shares") of KP Tissue Inc. ("KP Tissue") on a one-for-one basis pursuant to an amended and restated exchange agreement (the "Exchange Agreement") dated January 1, 2023 between Kruger, KP Tissue and KPI (the "Acquisition"). The KPI Shares were acquired pursuant to KPI's dividend reinvestment plan and in satisfaction of the dividend declared by KPI and payable today to 13582141 Canada, namely $11,271,069.72, satisfied by the issuance of KPI Shares at a price of $10.25 per KPI Share, being the volume weighted average trading price of the Common Shares on the Toronto Stock Exchange during the five trading day period immediately preceding the dividend payment date.

Immediately prior to the Acquisition, through its rights under the Exchange Agreement, 13582141 Canada had the right to acquire 62,617,054 Common Shares, representing approximately 86.28% of the issued and outstanding Common Shares on a partially-diluted basis. Immediately after the Acquisition, through its rights under the Exchange Agreement, 13582141 Canada had the right to acquire 63,716,670 Common Shares, representing approximately 86.48% of the issued and outstanding Common Shares on a partially-diluted basis.

13582141 Canada acquired the KPI Shares for investment purposes. 13582141 Canada may continue to acquire, on a quarterly basis, additional KPI Shares pursuant to KPI's dividend reinvestment plan and may from time to time exchange some or all KPI Shares held by it for Common Shares on a one-for-one basis pursuant to the Exchange Agreement. 13582141 Canada may, depending on market and other conditions, increase or decrease its beneficial ownership of securities of KP Tissue through market transactions, private agreements, public offerings or otherwise.

The head office of KP Tissue is located at 2 Prologis Blvd., Suite 500, Mississauga, Ontario, L5W 0G8.

This news release is issued in accordance with the early warning requirements under applicable Canadian securities laws. An early warning report relating to the Acquisition will be filed by 13582141 Canada with applicable securities regulators and will be available for viewing under KP Tissue's SEDAR profile at www.sedar.com. A copy of the early warning report may be obtained by contacting 13582141 Canada at the contact information provided below.

About Kruger

Founded in Montréal in 1904, Kruger Inc. is a major provider of tissue products, 100% recycled containerboard, corrugated packaging, publication papers, specialty papers, pulp, renewable energy and cellulosic biomaterials. The Company is also a leader in paper and paperboard recycling in North America. A privately held family company, Kruger Inc. has 5,500 employees and its facilities are located in Québec, Ontario, British Columbia and Newfoundland and Labrador, as well as in the States of Tennessee, Maine, New York, Virginia, Kentucky and Rhode Island. www.kruger.com 

About KP Tissue Inc. (KPT)

KPT was created to acquire, and its business is limited to holding, an equity interest in Kruger Products, which is accounted for as an investment on the equity basis. After the Reorganization, KPT currently holds a 13.7% interest in Kruger Products. For more information visit www.kptissueinc.com.

About Kruger Products

Kruger Products is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and Bonterra™. In the U.S., Kruger Products 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. Kruger Products has approximately 2,700 employees and operates nine FSC® COC-certified (FSC® C-104904) production facilities in North America. For more information visit www.krugerproducts.ca.

SOURCE Kruger Inc.