Packaging Dynamics Corporation and Thilmany, LLC Complete Merger

Chicago, Illinois, and Kaukauna, Wisconsin, USA, 12 June 2006 -- /PRNewswire/ -- Packaging Dynamics Corporation, a leading flexible packaging company, and Thilmany, LLC, a leading manufacturer and converter of specialty lightweight and pressure sensitive papers, announced the completion of their merger following the acquisition of Packaging Dynamics by Thilmany, an affiliate of Kohlberg & Company, a private investment firm, on 09 June.

The New Packaging Dynamics Corporation

The combined company will have annual sales of approximately USD 750 million, making it one of the 10 largest flexible packaging companies in the United States. Going forward, the parent company will operate as Packaging Dynamics and will be comprised of three distinct business units, each of which will be a recognized leader in its respective markets:

-- BagcraftPapercon - A leading converter of value-added food packaging
products including a broad line of specialty bag, wrap, and sheeted
products. Key market segments served include restaurant, food service
distribution, supermarket, and food processor. BagcraftPapercon
operates facilities in Atlanta, Georgia; Baxter Springs, Kansas; Chicago, Illionois; Ft. Madison, Iowa; and Los Angeles, California.

-- International Converter (ICI)/Thilmany Packaging - This combination
creates a leading producer of adhesive and extrusion laminated
structures for use in retail, consumer, medical and industrial
packaging, and building materials applications. The business operates
facilities in Belpre and Caldwell, Ohio; Iuka, Mississippi; and Kaukauna, Wisconsin.

-- Thilmany Papers - A leading manufacturer of specialty lightweight
paper for packaging, pressure sensitive, and technical and industrial
applications. Thilmany Papers' operates mills in Kaukauna and De Pere,
Wisconsin, and also maintains an exclusive supply agreement with International
Paper for papers produced on its Androscoggin Mill No. 5 paper machine.

Frank Tannura will serve as chief executive officer, John Zuleger as president and chief operating officer, and Pat Chambliss as vice president and chief financial officer. Jack Rohrbach, Thilmany's Chairman, will continue in the role of non-executive Chairman for the combined company.

Packaging Dynamics is a leading flexible packaging and specialty papers company providing innovative solutions to customers in each of its three business units: BagcraftPapercon, International Converter/Thilmany Packaging, and Thilmany Papers. Packaging Dynamics is dual-headquartered in Chicago, Illinois, and Kaukauna, Wisconsin. For more information, visit the company Web sites at http://www.pkdy.com/ and http://www.thilmany.com/.

Source: Packaging Dynamics Corporation