Neenah Paper increases annual dividend by 13% to US$1.08/share, paid quarterly at rate of US$0.27/share

ALPHARETTA, Georgia , May 22, 2014 (press release) – Neenah Paper, Inc. (NP) announced today that its Board of Directors approved a 13 percent increase in the regular dividend on the Company's common stock. The annual dividend will increase from $0.96 to $1.08 per share and will continue to be paid in four equal quarterly installments. The first payment at the new quarterly rate of $0.27 per share is scheduled to be paid on September 3, 2014 to shareholders of record as of August 15, 2014.

In addition, the Company announced today that its Board of Directors has authorized a program that would allow the Company to repurchase up to $25 million of its outstanding common stock over the next twelve months. Purchases by the Company under the program would be made from time to time in the open market or in privately negotiated transactions in accordance with the requirements of applicable law. The timing and amount of any purchases will depend on share price, market conditions and other factors. The program does not require the Company to purchase any specific number of shares and may be suspended or discontinued at any time.

"With continued strong business performance and cash flow generation, we are pleased to be in a position not only to prioritize investments for organic growth and acquisitions, but also to increase cash returns to our shareholders," said John O'Donnell, Chief Executive Officer. "This latest dividend increase marks our fourth in the past 18 months as we continue to move towards our targeted dividend yield of over three percent. At the same time, we continue to have ample capacity to allocate a portion of our cash flow to share buybacks if this provides attractive returns. These actions reinforce the flexibility we have to pursue multiple paths as a result of our financial strength and the confidence we have in our future."

About Neenah Paper, Inc.

Neenah is a leader in premium image and performance-based products, including filtration, specialized substrates used for tapes, labels and other products, and high-end printing papers. Products are marketed under well-known brands such as CLASSIC®, ASTROBRIGHTS®, ENVIRONMENT®, CRANE®, ROYAL SUNDANCE®, SOUTHWORTH® KIMDURA®, Gessner®, JET-PRO® SofStretch™ and varitess®. Neenah is headquartered in Alpharetta, Georgia and its products are sold in over 70 countries worldwide from manufacturing operations in the United States and Germany. Additional information can be found at the company's web site, www.neenah.com.

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