York, PA, February 2, 2001 – P. H. Glatfelter Company today announced its financial results for the fourth quarter and year ended December 31, 2000.

Fourth quarter net income and earnings per share were $12.1 million and $.29, respectively, compared with net income and earnings per share of $14.3 million and $.34, respectively, in the quarter a year earlier. Net sales in the fourth quarter were $174.6 million versus $184.2 million in the period a year earlier.

For the year 2000, net income and earnings per share were $44.0 million and $1.04, respectively, compared with net income and earnings per share of $41.4 million and $.98, respectively, in the year-earlier period. Full-year 2000 results reflect the impact of an after-tax restructuring charge of $2.1 million, or $.05 per share, recorded during the first quarter. Net sales for the year 2000 were $724.7 million versus $705.5 million in 1999.

"Our fourth quarter results were reasonably good considering the slowed business environment," said George H. Glatfelter II, Chairman, President and Chief Executive Officer of P. H. Glatfelter Company. "We believe that due to the nature of our specialized products, our results are less sensitive to the cyclical swings that impact the broader paper industry. In addition, the implementation of our DRIVE process improvement and cost reduction efforts has begun to yield benefits. Like our competitors, we were negatively impacted in the fourth quarter by rising energy costs, particularly for natural gas, and we experienced a generally flat pricing climate for our products. Additionally, brief planned holiday shutdowns in late December also have a negative impact on our fourth quarter results.

"We are witnessing several developments that cause us to be encouraged as we look to the coming year. Among them is a reduction in production capacity for uncoated free sheet paper as competitors have shut down mills. Another is that no significant new production capacity is planned for the industry. We believe these developments are indicative of a more disciplined approach by the industry to balance supply with demand that will benefit us going forward.

"Despite these positive developments, our outlook is cautious, Mr. Glatfelter added, and we are approaching the year with discipline. Looking ahead, the economy’s strength is a big unknown, so we are hard at work implementing profit and business improvement initiatives that should help mitigate the potential effects of a weaker economy. We have begun to see the positive results of implementing our strategic initiatives. We remain on pace to achieve our DRIVE target of $50 million in sustainable, annual pre-tax cost savings and have already implemented projects that will result in more than $20 million in such on-going savings. All DRIVE initiatives will be fully implemented by late-2002. To continue to offset the threat of a weaker economy and rising energy costs, we are redoubling our efforts under our DRIVE initiative to identify further areas of process improvement and cost reduction. We are committed to continued improvement in the future."

Cash generation remained strong in the fourth quarter. The Company’s net debt/capital ratio was 34.5% at December 31 compared with 36.5% at September 30 and 41.5% at the end of 1999.

Any statements set forth in this press release with regard to the Company’s expectations as to industry conditions, demand for its products, its process improvements and cost reductions, its projected financial results or cash flow and other aspects of its business 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 that 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 are discussed in the Company’s Securities and Exchange Commission filings.

P. H. Glatfelter will hold a conference call today at 11 a.m. E.S.T. to discuss its fourth quarter results. The conference call may be accessed via the Internet at the Company’s website at http://www.glatfelter.com or at the Streetfusion website at http://www.streetfusion.com.

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P.H. Glatfelter Company Announces 12% Increase in 3rd Quarter Earnings Compared to 3rd Quarter 1999

York, PA October 16, 2000: P. H. Glatfelter Company announced today that net income and earnings per share for the three months ended September 30, 2000 were $7.2 million and $.17, respectively, as compared to $6.4 million and $.15, respectively, for the third quarter of 1999. Net sales for the three months ended September 30, 2000 were $170.5 million, slightly higher than the net sales for the third quarter of 1999.

Net income and earnings per share for the first nine months of 2000 were $31.9 million and $.75, respectively, as compared to $27.1 million and $.64, respectively, for the first nine months of 1999. Results for the nine months ended September 30, 2000 reflect the impact of an after-tax unusual charge of $2.1 million, or $.05 per share, recorded during the first quarter of 2000. Earnings per share for the first nine months of 2000, excluding this one-time charge, were $.80. Net sales for the nine months ended September 30, 2000 were $529.3 million, a 5% increase from $503.1 million in the first nine months of 1999.

"Our third quarter financial results are always negatively affected by the impact of scheduled annual maintenance shutdowns at our U.S. facilities," said George Glatfelter II, Chairman, CEO and President. "This quarter’s results were also hurt by the transitional costs of downsizing our Pisgah Forest mill. This transition is nearing completion, and more recent results for the mill are close to our initial projections. Although we are not satisfied with the third quarter financial results, we are pleased with the current strength of our markets, the operating performance of all of our mills and the outlook for the fourth quarter.

"We are beginning to implement the IMPACT project, which will ultimately provide the organizational design and information systems support necessary to implement our business strategy. We also continue to realize cost savings through the DRIVE initiative and remain on pace to achieve our target of $50 million in sustainable, annual pre-tax cost savings. We are currently realizing savings on projects that when fully implemented by the fourth quarter of 2001 will result in $40 million of expected annual savings. The remaining $10 million should be realized, on an annualized basis, by late-2002. Increased costs in certain areas of our business, primarily in energy and pulp, are currently negating a portion of our DRIVE savings."

The Company reported that cash generation remains strong. The Company’s net debt/capital ratio dropped to 36.5% as of September 30, 2000 from 41.5% at the end of 1999. The Company’s net debt/capital ratio was 48.3% at the end of the first quarter of 1998 following the acquisition of Schoeller and Hoesch.

Mr. Glatfelter added, "Our outlook for cash generation remains positive. We are fully committed to the IMPACT project and are excited about the business transformation that the project will generate. Despite a commitment to invest $49 million over the next two years in this initiative, our financial projections support the opportunity to re-institute disciplined share repurchases in the future."

Any statements set forth in this press release with regard to the Company’s expectations as to industry conditions, demand for its products, its cost reductions, its projected financial results or cash flow, share repurchases and other aspects of its business 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 that 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 are discussed in the Company’s Securities and Exchange Commission filings.

P. H. Glatfelter Company will hold a conference call today at 11 a.m. E.S.T. to discuss third quarter results. The conference call may be accessed via the internet at the Company’s website at http://www.glatfelter.com or at the Streetfusion website at http://www.streetfusion.com.

(a) After impact of a one-time, pre-tax charge of $3,336,000 primarily related to the previously announced decision to reconfigure the Company's tobacco papers business by reducing production capacity and associated salary and labor costs.

(b) After impact of a one-time, after-tax charge of $2,120,000, or $.05, related to the costs described in (a) above.

Net income and earnings per share for the first six months of 2000 were $24.7 million and $.58, respectively, as compared to $20.7 million and $.49, respectively, for the first six months of 1999. Results for the six months ended June 30, 2000 reflect the impact of an after-tax unusual charge of $2.1 million, or $.05 per share, during the first quarter of 2000. Earnings per share for the first six months of 2000, excluding this one-time charge, were $.63. Net sales for the six months ended June 30, 2000 were $358.8 million, an 8% increase from $333.1 million in the first six months of 1999.

“We are pleased with the results for the quarter and with the positive trend in our earnings per share over the previous quarter,” said George Glatfelter II, Chairman and CEO. “Although demand for most of our product lines was steady, market conditions were slightly weaker than we anticipated. We were able to sustain improved earnings through excellent productivity at our mills and by starting to realize cost savings through our DRIVE initiative. We remain on pace to achieve our DRIVE target of $50 million in sustainable, annual pre-tax cost savings. We are currently realizing savings on projects that when fully implemented by the fourth quarter of 2001 will result in $40 million of expected annual savings. The remaining $10 million should be realized, on an annualized basis, by mid-2002.”

The Company reported that cash generation remains strong. The Company’s net debt/capital ratio dropped to 38.5% as of June 30, 2000 from 41.5% at the end of 1999. The Company’s net debt/capital ratio was 48.3% at the end of the first quarter of 1998 following the acquisition of Schoeller and Hoesch.

Mr. Glatfelter added, “We are generating cash and making good progress in reducing our net debt/capital ratio and believe this situation will continue to improve over the balance of the year and beyond. Similar to previous years, results for the third quarter of 2000 will be negatively impacted by scheduled annual maintenance shutdowns at our domestic locations. Despite this impact, we expect our markets to remain steady for the third quarter and anticipate our markets will strengthen in the fourth quarter of 2000.”

“The fundamental economic conditions in our sector of the paper markets remain favorable. Worldwide growth in uncoated papermaking capacity is expected to be slight over the next several years. Modest worldwide growth in demand should result in demand for paper to increase at a faster rate than the increase in supply. We believe that such conditions should lead to favorable pricing for our papers which, together with the accomplishment of our DRIVE initiative, will improve our financial results.”

Any statements set forth in this press release with regard to the Company’s expectations as to industry conditions, demand for or pricing of its products, its cost reductions, its financial results and other aspects of its business 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 that 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 are discussed in the Company’s Securities and Exchange Commission filings.

(a) After impact of a one-time, pre-tax charge of $3,336,000 primarily related to the previously announced decision to reconfigure the Company's tobacco papers business by reducing production capacity and associated salary and labor costs.

(b) After impact of a one-time, after-tax chard of $2,120,000, or $.05, related to the costs described in (a) above. 

York, PA April 17, 2000: P. H. Glatfelter Company reported first quarter net income of $12.8 million, or $.30 per share, exclusive of a one-time, after-tax restructuring charge of $2.1 million, or $.05 per share, an increase of 57% compared to first quarter 1999 net income of $8.1 million, or $.19 per share. Net sales for the recently completed quarter were $181.3 million, an increase of 9% from $165.8 million in the first quarter of 1999. The restructuring charge is primarily the result of the previously announced decision to reconfigure the Company’s tobacco papers business by reducing production capacity and associated salary and labor costs.

“We are pleased with our financial results for the quarter,” stated George Glatfelter II, President and Chief Executive Officer. “Markets for our specialized printing and engineered papers continued to improve during the quarter as we experienced good demand and higher prices. We believe that recently implemented price increases will more than offset cost increases that we have experienced for fiber and energy. These price increases combined with strong demand should lead to good financial results in the second quarter.”

The Company also indicated that its first quarter results were negatively impacted by operational problems at its North Carolina location following scheduled maintenance downtime on certain equipment. Those problems were resolved during the first quarter.

The Company continues to focus on a number of strategic initiatives that it began during the first quarter of 2000. One of those is the “DRIVE” project, a comprehensive review of the Company’s operational processes with a goal of $50 million of sustainable annual cash cost savings. Progress to date is very encouraging, as the Company has identified approximately $40 million of potential savings. A number of initiatives to recognize cost savings are being implemented now, and others will be implemented throughout the next eighteen months. The realization of these cost savings will be a significant contributor toward reaching the Company’s goal of achieving a sustainable 17% average return on capital employed.

Other strategic initiatives addressing information technology, e-business models, customer focus, procurement and logistics strategy and organizational design are in their planning stages. The planning phase of these projects should be completed by mid-year with the implementation phase beginning immediately thereafter.

The Company is excited about the current state of the paper industry in general and the prospects for continued improvement for the foreseeable future. These improved market conditions, together with the benefits to be derived from the cost reduction efforts and the implementation of the other strategic initiatives, should provide an opportunity for enhanced financial results.

Any statements set forth in this press release with regard to the Company’s goals for cost reductions and return on capital employed, expectations as to industry conditions, operating results, demand for or pricing of its products and other aspects of its business 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 are discussed in the Company’s Securities and Exchange Commission filings.