The new, automated technology will increase efficiencies through innovation and quality.

Bala Cynwyd, Pa – August 19, 2020 —

PaperWorks is increasing its production capacity and capabilities, investing in new technology innovation and platforms in the Greensboro, North Carolina facility. The state-of-the-art equipment and new technology platforms will integrate well with PaperWorks’ highly-efficient business model by offering the most sophisticated automation geared towards in-line innovation and full-quality control. The new investment consists of:

• A new 41” Offset printing press from Komori (Japan) – GLX740 with seven colors and two coaters including automating logistics, in-line color control, in-line detection systems, automated changeovers, and in-line cold foil technology. This top-of-the-line technology platform will allow for the production of high-end cartons that will be highly sustainable and cost-efficient.
• Two new MasterFold folding gluing lines from Bobst (Switzerland) – 110A1 with 600Meters/Min line speed including end-to-end automation through a full batch turner, easy feed, and auto packer. These lines are made with a highly sophisticated servo controlled matic system and innovative technology used between job changeovers. They are equipped with a world-class, advanced gluing system and detection systems for full in-line quality and process control.

“We welcome the opportunity to improve on our current assets,” says Nirav Shah, Vice President of Strategic Accounts & New Technology Innovation. “We recognize this is the right time to invest in new technology to accommodate growing demand, delight our customers, and
surpass their needs and expectations.”

The new equipment will be installed in the Third Quarter 2020 and expected to be in production in the Fourth Quarter 2020.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements represent management’s current expectations and are based upon information available to the Company at the time of this press release. Statements in this press release that are not historical or current facts are “forward‑looking statements.” Such forward-looking statements include statements using words such as “anticipate,” “expect,” “believe,” “continue,” “will,” “may,” “estimate,” “assume,” “presume,” “pursue,” “outlook,” “plan,” “goal,” “milestone” and similar expressions. Such statements are subject to a number of risks, uncertainties, and assumptions that may cause actual results, developments, or achievements to differ materially from those projected or implied in these statements including, but not limited to, potential limitations on the Company’s ability to maintain contracts and other critical business relationships; risks associated with general economic and business conditions; requirements for adequate liquidity to fund its operations in the future, including obtaining sufficient financing on acceptable terms; other matters related to its indebtedness; and the risk factors and known trends and uncertainties described in the Company’s most recent periodic reports provided to Noteholders.

Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not intend to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.