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Glatfelter Increases Price of Airlaid

December 16, 2010

Move curtails increasing raw material prices.

Glatfelter's Advanced Airlaid Materials Business Unit (AMBU) has begun implementing price increases on a global basis in response to rising raw material costs. Price increases of AMBU's main supplies, such as pulp and bico fiber have risen in excess of 40% since mid-2009, and, despite forecasts to the contrary, will remain at high levels in the fourth quarter of this year. The rise in prices has been driven by increased demand and curtailment of capacities within the supplier's industry.

Petroleum based raw materials such as bico fiber, PE powders, and super absorbent powders have also seen their prices increase by close to 40% in the same period, in line with crude oil price increases, and show no signs of abating.

"We have witnessed historically high and rapid price increases of our our input costs in 2010 and whereas we were anticipating a decrease in Q4, this has not occurred and are now obliged to pass-on these increases to our
customers," said Dante Parrini, COO of Glatfelter. "This is not an AMBU specific issue, as the raw material prices have been in inflationary mode for the past four quarters and has affected the entire industry. These price increases are necessary in order to support our investment initiatives that will continue to ensure that Glatfelter remains the global supplier of choice."

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