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Press release from Marketwire

Fortress Paper Announces: Pulp Purchace and Sale Agreement for Fortress Specialty Cellulose

Monday, May 10, 2010

Fortress Paper Announces: Pulp Purchace and Sale Agreement for Fortress Specialty Cellulose20:49 EDT Monday, May 10, 2010VANCOUVER, BRITISH COLUMBIA---(Marketwire - May 10, 2010) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.Fortress Paper Ltd. ("Fortress Paper" or the "Corporation") (TSX:FTP) announces that its wholly-owned subsidiary, Fortress Specialty Cellulose Inc. ("Fortress Specialty") has entered into a pulp purchase and sale agreement (the "Agreement") with International Forest Products Corp. ("IFP") of Foxboro, Massachusetts.Pursuant to the terms of the Agreement, IFP will be the exclusive distributor for the sale of northern bleached hardwood kraft ("NBHK") pulp produced at the Thurso Mill for the duration of such production. The Thurso Mill is expected to commence commercial production in June of this year and is anticipated to produce approximately 250,000 air dry metric tonnes of high quality NBHK pulp per year. The re-start plans are on track and the mill expects to promptly deliver the high quality that it was well known for in the market place. "Everyone at International Forest Products Corporation (IFP) is extremely pleased to be working with Fortress Paper on this exciting venture," said Daniel Kraft, President and CEO of IFP. "This relationship will align IFP with one of the world's premier specialty paper producers."About Fortress Paper Fortress Paper is a leading international producer of security and other specialty papers. Fortress Paper operates three mills, the Landqart Mill located in Switzerland, the Dresden Mill located in Germany and the Fortress Specialty Cellulose Mill located in Thurso Quebec, Canada. Fortress Paper's security papers include banknote, passport and visa papers and its specialty papers include non-woven wallpaper base products, and graphic and technical papers. Fortress Paper's pulp business currently includes NBHK with plans to convert this capacity into dissolving pulp production. Fortress Paper plans to build a biomass based cogeneration plant at the Thurso Location. This news release contains certain forward-looking statements that reflect the current views and/or expectations of Fortress Paper with respect to its performance, business and future events, including statements relating to its plans to build a biomass based cogeneration plant. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Corporation operates, including assumptions relating to the Corporation's ability to successfully implement its business plan in respect of the Thurso Mill; that the Corporation will be able to receive all required approvals and complete construction of the cogeneration facility; and the expected effects of the cogeneration facility on the business of the Corporation. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, that the Corporation will be unable to implement its business plan in respect of the Thurso Mill as planned or at all; that the Corporation will be unable to receive all necessary approvals to begin construction of the cogeneration facility; that, assuming the Corporation receives all necessary approvals, the Corporation will be unable to complete construction of the cogeneration facility within the stated timeframe or at all; and those risks relating to changes in the market, potential downturns in economic conditions, fluctuations in the price and supply of raw materials, foreign exchange fluctuations, labour relations, regulatory requirements, reputation, competition, dependence on major customers, and other risk factors listed from time to time in the Corporation's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information, which are qualified in their entirety by this cautionary statement. Fortress Paper does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.FOR FURTHER INFORMATION PLEASE CONTACT: Fortress Paper Ltd. Chadwick Wasilenkoff 604-904-2328