October 10, 2005

MANUFACTURERS MAY BE COSTING PRODUCT AT THE TIME OF ARRIVAL

Dear Heritage Customer,

Our industry is operating in an unprecedented supply environment. The continuing supply disruption throughout the Gulf Coast is forcing all suppliers of resin and petrochemical based products to make immediate supply and cost decisions.

“From our assessment, this storm has resulted in the largest precautionary shutdown of petrochemical and refinery related assets in the history of the U.S. industry due to the size of the storm and the uncertainty of its landfall location.” - Chemical Market Associates, Inc. (CMAI)

Manufacturers continue to announce Force Majeure and/or allocations on a daily basis. Prices will continue to escalate and may get to a point when manufactures are costing product at time of arrival. Heritage is doing everything possible to keep you informed and your business operating in the most efficient manner possible. Your sales representative will be working with you closely to identify both a short and long term supply strategy. We will keep you informed as we receive additional communication from our suppliers and regret any difficulty this causes.

Heritage Paper is committed to providing you with as consistent a source of supply as possible during these times. As always, please contact your Heritage sales representative if you have any questions.

Sincerely,
Scott A. Henderson, General Manager