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P. H. Glatfelter Company Announces Tobacco Papers Price Increases

York, PA September 20, 1999: P. H. Glatfelter Company (NYSE: GLT), a global manufacturer of engineered papers and specialized printing papers, today announced it has notified its major tobacco paper customers that prices will be increased for certain tobacco paper products effective January 1, 2000.

"As one of three top-tier suppliers in this business, we provide the full complement of services required by our customers," said George H. Glatfelter II, President and Chief Executive Officer. "Our Ecusta and Schoeller & Hoesch Divisions have been reliable, innovative suppliers of tobacco papers for over 50 years. These price increases are necessary for us to remain a viable, high-quality supplier to our customers.

"We recognize this step creates near-term uncertainty regarding the level of sales for our company's tobacco paper products. While it is too early to speculate on our customers’ reaction, we have contingency plans which will be implemented if a reduction in demand occurs, including potentially shutting down capacity and further reducing costs," Mr. Glatfelter said.

The company said that if it becomes necessary to reduce capacity and costs due to lower demand for tobacco paper, it believes it can re-deploy some assets over time into some of its other paper markets.

P. H. Glatfelter Company manufactures a broad product line of engineered papers and specialized printing papers in the U.S., Germany and France, and has other production facilities in Canada, Australia and the Philippines. In addition to tobacco papers, the company holds a leading market share in book publishing papers and tea bag papers. Net sales for the four quarters ended June 30, 1999 were $661 million.

Certain statements set forth in this press release with respect to the possible effect of the announced price increases and the Company’s ability to re-deploy assets and reduce costs may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company makes such statements based on assumptions, which it believes to be reasonable, there can be no assurance that actual results will not differ materially from the Company’s expectations. Factors that could cause or contribute to actual results differing materially from such forward-looking statements include, but are not limited to, the inability of the Company to re-deploy assets or reduce costs sufficiently to offset the effect of any reduction in demand for its tobacco paper products, as well as those factors discussed in the Company’s Securities and Exchange Commission filings.


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