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EXHIBIT 99.1
[LETTERHEAD OF CROWN VANTAGE]
News Release
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Release: For Immediate Release
For Further Information Contact:
At the Company:
Tom Deutsch 513-588-1750
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Tuesday, August 22, 2000
CROWN VANTAGE HALTING PRODUCTION AT MICHIGAN PLANT;
LAYOFFS ANNOUNCED
Cincinnati--Crown Vantage Inc. (OTCBB: CVANQ) today announced it will be idling
its entire Parchment, Mich., paper production operation indefinitely. This
action will result in the permanent layoff of 249 salaried and hourly employees
effective October 21 through November 3, 2000.
"We made several attempts to turn the Parchment facility around over the years;
however, we now believe that idling this plant is the most appropriate action
and will provide a greater benefit to our remaining employees, customers and
stakeholders in the long run," said Bob Olah, chief executive officer. "Halting
production at our Parchment facility is the latest in a series of strategic
moves to improve overall operating performance. This, and other initiatives,
which have included a comprehensive product line/price rationalization, recent
management restructuring and a headquarters move with corporate-staff
reductions, are intended to return the business to a more profitable base from
which to grow."
Management said that capacity available in the company's active mills is
expected to absorb the production no longer being scheduled on the Parchment
machines.
Crown Vantage is a leading manufacturer of value-added papers for printing,
publishing and specialty packaging. The Company's diverse products are tailored
for the special needs of target markets. End users include specialty magazines
and catalogs, financial printing and corporate communications, packaging and
product labels, coffee filters and disposable medical garments--and hundreds
more. For more information, visit www.crownvantage.com.
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Safe Harbor Statement: This news release contains certain forward-looking
statements concerning Crown Vantage's positioning for the future. As required
by the Private Securities Litigation Reform Act of 1995, the company advises
that forward-looking statements are subject to risks and uncertainties that
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could cause actual results to differ materially from those stated or inferred.
These could include successful transfer of production to other Crown Vantage
locations, the return of the business to profitability, the inability to improve
overall operating performance or other uncertainties listed from time to time in
the company's filings with the SEC.
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