For Immediate Release

January 24, 2012

Kruger Products AMAZING Year with

Five Prestigious CASSIES Awards 2012

Award-Winning Marketing and Communications Campaigns for Cashmere Bathroom Tissue and SpongeTowels Assert Category Leadership

Kruger Products LP, one of Canada’s most successful companies and a brand powerhouse with operations in Canada and the U.S., capped an amazing year of marketing innovation with the win of five coveted national awards at the CASSIES Gala 2012 on Monday, January 23, 2012 in Toronto.  Canada’s leading manufacturer and distributor of paper products won two Gold and three Silver CASSIES for SpongeTowels^® Paper Towels, and Cashmere^® Bathroom Tissue (BT), at Canada’s annual advertising competition — the most awards of any company.

“Our CASSIES awards are the product of incredible insight, teamwork, creativity and innovative marketing strategies, all focused on achieving measurable results,” says Nancy Marcus, Corporate Vice President, Consumer Marketing, Kruger Products. “We are so grateful to our English and French agency partners for developing original, integrated ad campaigns that push the creative envelope to engage consumers and build our brands.  It is truly an honour to be recognized for excellence in advertising by our industry peers.”

“The CASSIES are the Canadian ad industry’s ultimate test and are awarded based on proven effectiveness in meeting brand marketing objectives,” says Jani Yates, President, Institute of Communication Agencies (ICA Canada). “Kruger has always been an advocate for the CASSIES and believes in recognizing successful marketing tools to support brands. The company’s award-winning campaigns for SpongeTowels and Cashmere BT demonstrate creativity and innovation that break through the clutter to deliver incredible, year over year business results,” she says.

SpongeTowels Paper Towels

Gold, Sustained Success

Gold, Packaged Goods

Silver, Sustained Success (Quebec)

This highly creative, multi-year breakthrough advertising campaign supports the need to build brand equity and sustainable business results for SpongeTowels, following its brand name transition from ScotTowels in 2006.

The six-year English campaign features the symbolic Sponge Pocket army — a squad of white sponge-clad actors — always ready to soak-up household spills and clean up messes.  The campaign has propelled exponential case volume, outpacing category growth by a substantial margin; driving a 5-point share increase in the market with a 20% increase in advertising recall.

Cashmere Bathroom Tissue

Silver, Packaged Goods

Silver, Sustained Success

Cashmere, Canada’s best-selling Bathroom Tissue, has demonstrated some of the most unexpected and compelling advertising ever seen in the category, anywhere.

In 2004, Kruger (formerly Scott Paper Canada Limited) developed a multi-faceted marketing strategy to successfully transfer the Canadian brand equity earned over more than 35 years, from Cottonelle to an entirely new name, Cashmere Bathroom Tissue — without losing market share and leadership position. Cashmere’s new, premium luxury position was and remains…the softest feeling next to your skin; nothing feels like cashmere.

Kruger’s long-term strategy to transition, launch, grow and sustain Cashmere market share has been a resounding success.  Cashmere dominates as Canada’s best selling Bathroom Tissue despite only being sold in Eastern Canada, with unprecedented sales increases year over year, case volume has doubled; translating into an incremental $51 million in annual sales.

The SpongeTowels and Cashmere award-winning campaigns were a collaborative client-agency achievement with advertising partner john st., Advertising Agency of Record of 10 years; Quebec advertising partner Saint Jacques Vallée Y&R; and past associate PALM + HAVAS.

Since its inception in 1993, the CASSIES demonstrate by rigorous case study, that advertising is a prudent commercial investment that pays out against measurable criteria.  The CASSIES are Canada’s only advertising award show based on proven business effectiveness and are presented by the Institute of Communication Agencies (ICA), the Association des agences de Publicité du Québec (AAPQ) and Association des professionnels de la communication et du marketing (APCM).

International Recognition for Innovation and Creativity

Kruger Products has won 38 top marketing and communications awards in the last 10 years, including 25 national and international awards for its innovative PR programs to support Cashmere BT.

Created by Toronto PR firm, Strategic Objectives, the White Cashmere Collection: Fashion with Compassion™ is a unique showcase for Canada’s top design talent and was created to help launch new Cashmere Bathroom Tissue in 2004.

The White Cashmere BT Couture Collection is entirely crafted in Cashmere BT and has showcased more than 100 top Canadian designers to-date.  The first-of-its-kind program, is part of an enduring brand platform that permeates every aspect of Cashmere brand marketing from advertising to on-line; traditional and social media relations; partnerships; special events, exhibits and sponsorships; consumer, customer and employee communications; and a fully-integrated, annual fund-and awareness-raiser for The Canadian Breast Cancer Foundation.

Kruger Products is already heating-up Canada’s 2012 marketing scene with new and innovative campaigns to support its popular, best-selling brands. SpongeTowels will return this year as the “Official Paper Towel” for Season Two of Top Chef Canada on the Food Network; and Season 3 of Les Chefs on Radio-Canada. The brand is also augmenting its sponsorship of Top Chef, the Food Network’s #1 show, by awarding a $100,000 prize to the winning chef along with a consumer promotion featuring a meet and greet with Top Chef Canada judge, Mark McEwan, at one of his renowned restaurants.

And Cashmere is also set to take to the runway, for the ninth consecutive year, with a stunning vision of Fashion with Compassion, in Toronto this September.

“Our mission is to deliver exceptional products that continually fulfill and exceed our consumer and customer expectations, while creating highly effective communication and sponsorship programs that engage Canadians and drive success,” says Nancy Marcus.  “2012 is shaping up to be an exciting year, full of innovative marketing tools to support our brands!”

About Kruger Products L.P.

A subsidiary of Kruger Inc., Kruger Products L.P. is Canada’s leading manufacturer of quality tissue products for household, industrial and commercial use. The Company serves the Canadian consumer market with such well‐known brands as Cashmere^®, Purex^®, SpongeTowels^®, Scotties^® and White Swan^®. In the U.S., Kruger Products manufactures the White Cloud^® brand, as well as many private label products. The Company has 2,500 employees and operates five FSC^® CoC‐certified mills, four of which are located in Canada and one in the US. For more information, visit www.krugerproducts.ca.