SAN FRANCISCO, CA. – Meriturn Partners announced the merger of its two specialty paper companies, Valentine Paper, based in Lockport, Louisiana, and Dunn Paper, located in Port Huron, Michigan. The combined company has the capacity to produce over 150,000 of annualized tons of specialty coated, machine glazed, and waxed papers. The combined entity brings together significant technical expertise in MG, MF, coated, uncoated, latex saturated, and waxed specialty grades to meet the unique needs of a very large customer base worldwide. While the mills share many customers, they share relatively few products, as each mill offers a very different and unique technical expertise. Consolidating the two mills provides greater critical mass in the marketplace for both sales and purchasing, better service for customers, as well as increasing the operating and administrative synergies and cost savings between the operations.

Meriturn’s Partner and Chairman of Dunn and Valentine, Mark Kehaya commented: “We are excited to bring these complementary specialty paper companies onto one platform. An integrated management team and sales force greatly increases efficiency and service for our customers, while consolidated purchasing, R&D, and administrative synergies dramatically improves our cost structure and profitability. From all sides, this is a win-win transaction.”

As part of the merger, Meriturn structured a new financing package with CIT Commercial Services to provide incremental working capital to fund the continued growth of the two mills and to return some of Meriturn’s and management’s capital.

About Meriturn Partners, LLC

Meriturn Partners manages the Meriturn Fund, which invests in corporate recapitalizations, restructurings and turnarounds where its capital, financial restructuring, and operational initiatives can improve the profitability and growth of businesses. Meriturn targets investments in companies operating in basic industries (manufacturing, services, distribution, etc.) with $25-$250 million of revenue and based in the U.S. and Canada. Meriturn has invested in 7 companies, with combined annual revenues of approximately $300 million and over 1,000 employees. Meriturn was founded in 2001 and has offices in San Francisco, CA and Raleigh, NC. For more information visit Meriturn’s website at www.meriturn.com.

About Dunn Paper, Inc.

Dunn Paper is a producer of specialty coated and uncoated machine-glazed papers, which are used in flexible packaging, grease and mold resistant, metalized base, wet-strength, medical, foodservice, and bag paper applications worldwide. Dunn operates four Fourdrinier / Yankee paper machines in Port Huron, Michigan that produce over 250 tons per day of light papers ranging from 10-80 lb. basis weights, and employs nearly 200 employees. Meriturn acquired the assets of the mill through an out-of-court liquidation in October, 2003 in cooperation with management, and implemented an aggressive turnaround which improved profitability by over $5 million within the first year. For more information visit Dunn’s website at www.dunnpaper.com.

About Valentine Paper, Inc.

Valentine Paper is a producer of specialty coated and latex-saturated papers, which are converted and used as wallpaper, water-resistant poster-board, masking tapes, veneer backing, and other unique applications. Valentine operates two Fourdrinier paper machines at its mill in Lockport, Louisiana with capacity to produce over 200 tons per day of papers ranging from 40-130 lb. basis weights. Valentine employs approximately 80 employees. Meriturn purchased the assets of Valentine in December, 2005 through a 363 bankruptcy sale process and since that time Meriturn has executed a turnaround plan which has significantly improved the operations of the business. For more information visit Valentine’s website at www.valentinepaper.com.

Contact:
Franklin Staley
Meriturn Partners, LLC
415-616-9803
franklin@meriturn.com