Finch Sells Hydro Facility; Will Continue to Use Clean, “Green” Power

Finch Paper announced today that it has sold its hydroelectric facility on the Hudson River to Brookfield Power in a sale that will help strengthen Finch’s competitive position and ensure the continued availability of low-cost, clean hydropower to the Finch Paper facilities.

Finch Paper will purchase all of the electricity generated by the facility through a long-term contract with Brookfield.

The sale, which was completed on Wednesday, August 1, 2007, includes Finch Paper’s portion of the Glens Falls NY, dam, and the hydroelectric power-generation equipment located inside the Finch Paper mill. Terms of the sale were not disclosed. The sale will not affect employment levels at Finch Paper.

“This is a sound strategic move that allows us to further concentrate our resources on our core business of making quality printing paper, while ensuring a long-term supply of low-cost, environmentally friendly energy to help keep our mill competitive,” said Finch Paper Chairman, President & CEO Richard J. Carota.

“Finch Paper adopted the use of clean, green non-fossil fuel hydropower more than a century ago, and we’re pleased that this power will continue to flow directly to our facilities,” Mr. Carota added.

The hydro facility produces approximately 60 gigawatt hours (GWh) of energy annually — or approximately 30 percent of Finch Paper’s energy needs. Finch Paper generates approximately 60 percent of its other energy needs through its on-site co-generation facility.

For more information, please contact Finch Paper National Sales Manager Mike Bean at extension 5616.