Exhibit 99.1

KAPSTONE REPORTS RECORD NET SALES

Third Quarter Operating Income Climbs over 13%

NORTHBROOK, IL — November 2, 2011 — KapStone Paper and Packaging Corporation (NYSE: KS) today reported results for the third quarter ended September 30, 2011.

·                  Record net sales of $216 million, up 4 percent versus 2010

·                  Adjusted EBITDA  of  $42.3 million, up $3.6 million versus 2010

·                  Diluted EPS of $0.35, down $0.47, or 57 percent versus 2010

·                  Adjusted diluted EPS of $0.39 equal to 2010

·                  Free cash flow of $0.79 per share, up $0.26 per share versus 2010

Roger W. Stone, Chairman and Chief Executive Officer, stated, “KapStone’s strong production in the third quarter of 2011 enabled us to achieve record net sales of $216 million and generate $38 million of free cash flow.  Our mills produced nearly 329,000 tons of paper, and we improved operating margins year-over-year with pricing and productivity improvements. We are  implementing a $50 per ton price increase for our kraft paper grades which will be fully realized in early 2012. Our order backlog remains strong.”

Third Quarter Operating Highlights

Net sales for the quarter ended September 30, 2011 were $215.8 million, an increase of 4.0 percent, when compared to third quarter of 2010 net sales of $207.5 million. The increase in net sales was attributable primarily to higher unit selling prices. Average revenue per ton increased to $639 in 2011 versus $614 during the third quarter of 2010 and accounted for $7.3 million of the improvement in sales. The higher average unit selling prices reflect full realization of price increases effective in 2010 and in the first half of 2011. Sales revenues in the third quarter of 2011 benefited by $1.5 million from favorable exchange rates. Offsetting the increase in net sales was $0.5 million due to Hurricane Irene in August 2011.

Operating income of $30.1 million for the 2011 quarter exceeded prior year’s results by $3.5 million. The primary reasons for the improved results were higher unit pricing and improved mix which contributed $7.9 million and productivity improvements of $1.7 million.  The stronger Euro, up 10 percent on the third quarter average, improved operating income by $1.5 million.

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However, operating income was negatively impacted by $5.1 million of inflation on input costs, mainly for caustic soda, higher wages, and freight-in for wood and $1.2 million for higher maintenance work at our Charleston mill.  In addition, KapStone incurred $1.1 million of expenses related to the USC acquisition.

Interest expense and amortization of debt issuance costs was $1.0 million for the third quarter of 2011, which decreased by $0.3 million versus the comparable quarter in 2010 as a result of year over year outstanding net debt reduction of $60.4 million. Net debt at September 30, 2011, is $18.3 million, and the interest rate on the majority of the Company’s debt is 1.74 percent.

The effective tax rate for the 2011 third quarter was 42.3 percent compared to negative 49.9 percent for the 2010 third quarter. The 2011 effective tax rate includes a $0.7 million discrete adjustment as 2010 income tax returns were filed during the quarter and a $0.6 million reduction in the expected benefit from the 2011 domestic manufacturing deduction. The 2010 effective tax rate included a $20.7 million benefit from the cellulosic biofuel producer’s credit. KapStone expects a 39.5 percent effective tax rate for the fourth quarter of 2011.

In August 2011, the Internal Revenue Service advised us that our tax returns for the years 2007 through 2009 have been forwarded to the Joint Committee on Taxation for final review and approval.

Cash Flow and Working Capital

Cash and cash equivalents increased by $17.5 million in the quarter ended September 30, 2011, reflecting $51.0 million provided by operating activities offset by $28.3 million used in investing activities and $5.1 million used in financing activities. Cash used for investing activities includes a $15.0 million deposit associated with the U.S. Corrugated Acquisition (“USC”) which was paid in conjunction with signing the definitive agreement on September 22, 2011.

Total net debt outstanding as of September 30, 2011, was $18.3 million and was reduced by $38.4 million during the third quarter of 2011.

At September 30, 2011, the Company had approximately $82.3 million of cash (including $15.0 million deposit for USC), $114.7 million of working capital and $91.7 million of revolver borrowing capacity.

USC Acquisition

In conjunction with our consummation of the USC acquisition on October 31, 2011, we entered into a new credit agreement with Bank of America. As we previously reported, the new credit agreement includes a $375.0 million five year, LIBOR based, term loan and a $150.0 million revolving credit facility. At closing, we retired our remaining $100.8 million due under our old credit agreement and paid $12.5 million in bank fees.

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Conclusion

Stone concluded, “Our legacy KapStone operations are performing very well, and we are now thoroughly engaged in welcoming and integrating U.S. Corrugated into the KapStone family.”

Conference Call

KapStone will host a conference call at 11 a.m. ET, Thursday, November 3, 2011, to discuss the Company’s financial results for the 2011 third quarter.  All interested parties are invited to listen and may do so by either accessing a simultaneous broadcast webcast on KapStone’s website, http://www.kapstonepaper.com, or for those unable to access the webcast, the following dial-in numbers are available:

Domestic: 800.591.6944

International: 617.614.4910

Participant Passcode: 88117705

A presentation to be viewed in conjunction with the call will also be available on our website, http://www.kapstonepaper.com, in the “Investors” section.

The webcast is also being distributed through the Thomson StreetEvents Network.  Individual investors can listen to the call at http://earnings.com, Thomson’s individual investor portal, powered by StreetEvents.  Institutional investors can access the call via Thomson StreetEvents (http://streetevents.com) a password-protected event management site.

Replay of the webcast will be available for 30 days on the Company’s website following the call.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper products, linerboard and shipping containers.   The Company is the parent company of KapStone Kraft Paper Corporation which includes paper mills in Roanoke Rapids, NC, North Charleston, SC, and Cowpens, SC, fourteen converting locations in the east and midwest, and a lumber mill in Summerville, SC. The business employs approximately 2,700 people.

Non-GAAP Financial Measures

In addition to our audited consolidated financial statements presented in accordance with U.S. GAAP, management uses certain non-GAAP measures, including “EBITDA”, “Adjusted EBITDA”, “Adjusted Net Income”, and “Adjusted Diluted EPS” to measure our operating performance.  Investors are cautioned that EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS are not financial measures under U.S. GAAP.  Management uses these measures to focus on the on-going operations, and believes that they are useful to investors because they enable them to perform meaningful comparisons of past and present operating results. The Company believes that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency to key measures used to evaluate the performance and liquidity

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of the Company.  Management uses EBITDA for evaluating the Company’s performance against competitors and as a primary measure for employees’ incentive programs.  Reconciliations of net income to EBITDA, EBITDA to Adjusted EBITDA, net income to Adjusted Net Income, and diluted EPS to Adjusted Diluted EPS are included in the financial schedules contained in this press release.  In addition, these measures should not be construed as alternatives to any other measures of performance determined in accordance with GAAP.

Forward-Looking Statements

Statements in this news release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by words such as  “may,” “will,” “should,” “would,’ “expect,” “project,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “outlook,” or “continue,” the negative of these terms or other similar expressions.   These statements reflect management’s current views and are subject to risks, uncertainties and assumptions, many of which are beyond the Company’s control that could cause actual results to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially include, but are not limited to: (1) industry conditions, including changes in cost, competition, changes in the Company’s product mix and demand and pricing for the Company’s products; (2) market and economic factors, including changes in raw material and healthcare costs, exchange rates and interest rates; (3) results of legal proceedings and compliance costs, including unanticipated expenditures related to the cost of compliance with environmental and other governmental regulations; (4) the ability to achieve and effectively manage growth; (5) the ability to pay the Company’s debt obligations;  (6) the ability to carry out the Company’s strategic initiatives and manage associated costs including the acquisition of U.S Corrugated; and (7) the tax impact of the federal incentive program for alternative fuel mixtures.  Further information on these and other risks and uncertainties is provided under Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 and elsewhere in reports that the Company files or furnishes with the SEC. These filings can be found on KapStone’s Web site at www.kapstonepaper.com and the SEC’s Web site at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and the Company disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.

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KapStone Paper and Packaging Corporation

Consolidated Statements of Income

(In thousands, except share and per share amounts)

(unaudited)

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Consolidated Balance Sheets

(In thousands)

KapStone Paper and Packaging Corporation

Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

KapStone Paper and Packaging Corporation

Supplemental Information

GAAP to Non-GAAP Reconciliations

($ in thousands, except share and per share amounts)

(unaudited)

KapStone Paper and Packaging Corporation

Supplemental Information

Net Debt and Debt to Equity Ratio

(In thousands)

(unaudited)

KapStone Paper and Packaging Corporation

Supplemental Information

Cash Flow From Operations and Adjusted Free Cash Flow

(In thousands)

(unaudited)