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EXHIBIT 99
PRESS RELEASE
Contact: Bill Foust Paul Roberts
770-569-4203 770-569-4277
SCHWEITZER-MAUDUIT INITIATES BANDED CIGARETTE PAPER
CAPITAL PROJECT
Alpharetta, GA, June 16, 2000. Schweitzer-Mauduit International, Inc. (NYSE:SWM)
today announced that it has reached agreement with Philip Morris to proceed with
the modification of some paper machines and related manufacturing equipment at
Schweitzer-Mauduit's Spotswood, New Jersey mill to produce commercial quantities
of a proprietary banded cigarette paper for Philip Morris. This new cigarette
paper was jointly developed by Philip Morris and Schweitzer-Mauduit and may make
a cigarette less likely to ignite certain fabrics.
Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer of
Schweitzer-Mauduit stated, "The agreement to proceed with conversion of the
Spotswood mill to produce this innovative product is a significant milestone in
the multi-year joint development effort with Philip Morris to design, develop
and produce this special patented cigarette paper. It is further evidence of the
value that Schweitzer-Mauduit brings to its customer relationships and the type
of significant innovation that its partnership with Philip Morris permits."
The Company made no projections concerning the impact this new product may have
on its operations and financial results. The timing and pace at which equipment
will be converted to produce this new product are in the process of being
finalized. The capital cost to implement the banded cigarette paper project will
depend upon the equipment conversion plan which, if fully implemented at
Spotswood, could result in a capital investment in excess of $40 million.
Schweitzer-Mauduit does not expect the banded cigarette paper project to impair
its ability to pursue other appropriate business opportunities. Funding for the
Spotswood mill conversion and increased working capital requirements will come
from internal sources and from advance payments by Philip Morris against future
product purchases.
Schweitzer-Mauduit is a diversified producer of premium specialty papers and the
world's largest supplier of fine papers to the tobacco industry. It also
manufactures specialty papers for use in alkaline batteries, vacuum cleaner
bags, overlay products, business forms and printing and packaging applications.
Schweitzer-Mauduit and its subsidiaries conduct business in over 90 countries
and employ 3,400 people worldwide, with operations in the United States, France,
Brazil and Canada.
Certain comments contained in this news release concerning the business outlook
and anticipated financial and operating results of the Company constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 and are subject to the safe harbor created by that
Act. The forward-looking statements are based upon management's expectations and
beliefs concerning future events impacting the Company. There can be no
assurances that such events will occur or that the Company's results will be as
estimated. Many factors outside the control of the Company also could impact the
realization of such estimates. Such factors are discussed in more detail in the
Company's SEC reports, including the Company's Annual Report on Form 10-K for
the year ended December 31, 1999.
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