Nashua Corporation Opens Facility in Cranbury, New Jersey

Nashua, New Hampshire, USA, 13 June 2006 -- Nashua Corporation (NASDAQ: NSHA), a manufacturer of labels and thermal and specialty papers, today announced the opening of a new manufacturing and distribution facility in Cranbury, New Jersey, USA.

This operation will address the growing demand for the company's wide-format specialty paper products used by architects and engineers and in the graphic and sign markets. The new facility expands Nashua's Dietzgen division's manufacturing capabilities and enhances its ability to provide high-quality products and services to customers in the mid-Atlantic and northeast regions.

"Our wide-format business has increased significantly in the past four years, and this new facility will enable us to build on the momentum we have in the marketplace. This investment offers expanded service and support to our customers on the east coast where we see excellent opportunities for growth," said Tom Brooker, CEO of Nashua Corporation.

"The opening coincides with the enhancement of our Magellan color line with new products that will be launched within the next few weeks," Brooker continued. "The Magellan products offer us an opportunity to enter into the growing markets for indoor and outdoor signage, point of purchase displays, tradeshow graphics, retail signage, and displays. We are very excited about these new opportunities to expand our business."

About Dietzgen

Nashua Corporation's Dietzgen Division is a leading North American converter of wide format media for digitally produced documents and graphics. Dietzgen engineers and converts quality paper, films, and specialty substrates to the reprographics and display graphics marketplace and services customers through a nationwide network of regional distribution centers. Nashua has manufacturing and distribution facilities in California, New Jersey, and Tennessee, as well as distribution centers located in Illinois, Texas, and Washington. Additional information about Dietzgen can be found at www.nashua.com/Dietzgen.

About Nashua

Nashua Corporation manufactures and markets a wide variety of specialty imaging products and services to industrial and commercial customers to meet various print application needs. The Company's products include thermal coated papers, pressure-sensitive labels, bond, point of sale, ATM and wide format papers, entertainment tickets, and ribbons for use in imaging devices. Additional information about Nashua Corporation can be found at www.nashua.com.