MIAMISBURG, Ohio, May 12, 2011 /PRNewswire/ -- NewPage Corporation (NewPage) today announced its results of operations for the first quarter of 2011. Net sales were $904 million in the first quarter of 2011 compared to $817 million in the first quarter of 2010, an increase of $87 million, or 11 percent. The increase was primarily the result of higher sales volume of core paper and higher average core paper prices in the first quarter of 2011 compared to the first quarter of 2010. Gross margin (loss) for the first quarter of 2011 was 5.1 percent compared to (3.9) percent in the first quarter of 2010, primarily as a result of higher average core paper sales prices in the first quarter of 2011. During the first quarter of 2011, North American coated paper demand was flat compared to the first quarter of 2010.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization as further adjusted as shown in the attached reconciliation) was $85 million in the first quarter of 2011 compared to $15 million in the first quarter of 2010. The improvement was primarily the result of higher average paper prices and higher sales volume of core paper. Net income (loss) was $(88) million in the first quarter of 2011 compared to $(175) million in the first quarter of 2010.

"Overall our mill operations ran very well during the first quarter of 2011, and volume was in line with our seasonal expectations. We also saw continued price improvement in our core paper products during the quarter," said George F. Martin, president and chief executive officer for NewPage. "Our business also experienced significant increases in our input costs during the first quarter of 2011 due to higher prices for wood, purchased pulp, certain petroleum-based chemicals and transportation, and we expect this trend to continue throughout 2011."

During the first quarter of 2011, NewPage permanently closed the Whiting, Wisconsin mill. NewPage did not take any market-related downtime in the first quarter of 2011 compared to 39,000 tons in the first quarter of 2010.

The following schedule details key performance and cost metrics for the first quarter:

NewPage ended the first quarter with $170 million of liquidity, consisting of $9 million of cash and cash equivalents and $161 million available for borrowing under the revolving credit facility. "We continue to evaluate the sale of nonstrategic assets, such as the recently announced sale of our cogeneration energy assets in Rumford, Maine, which is expected to close in the second or third quarter of 2011," said Martin.

Additional Information

The NewPage Form 10-Q Quarterly Report to be filed with the U.S. Securities and Exchange Commission today can be found on the NewPage Web site. The company believes this information is sufficient to answer questions, and no conference call is planned.

About NewPage Corporation

Headquartered in Miamisburg, Ohio, NewPage Corporation is the largest coated paper manufacturer in North America, based on production capacity, with $3.6 billion in net sales for the year ended December 31, 2010. The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint and specialty papers. These papers are used for corporate collateral, commercial printing, magazines, catalogs, books, coupons, inserts, newspapers, packaging applications and direct mail advertising.

NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. As of March 31, 2011, these mills have a total annual production capacity of approximately 4.1 million tons of paper, including approximately 2.9 million tons of coated paper, approximately 1.0 million tons of uncoated paper and approximately 200,000 tons of specialty paper.

Forward-looking Statements

This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "anticipate," "expect," "estimate," "intend," "project," "plan," "will likely continue," "will likely result," or words or phrases with similar meaning. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include, among others, our substantial level of indebtedness; our ability to obtain additional financing or refinance our indebtedness may be limited; changes in the supply of, demand for, or prices of our products; general economic and business conditions in the United States and Canada and elsewhere; the ability of our customers to continue as a going concern, including our ability to collect accounts receivable according to customary business terms; the activities of competitors, including those that may be engaged in unfair trade practices; changes in significant operating expenses, including raw material and energy costs; changes in currency exchange rates; changes in the availability of capital; changes in the regulatory environment, including requirements for enhanced environmental compliance; and other risks and uncertainties that are detailed in our filings with the Securities and Exchange Commission. The company does not intend, and undertakes no obligation, to update any forward-looking statements.

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CONTACT: Amber Garwood, +1-937-242-9093