Dec. 16, 2011-- Wausau Paper (NYSE:WPP)today announced entry into definitive

agreements for the sale of its remaining timberland holdings, totaling approximately

80,200 acres located in Northern Wisconsin, for $42.9 million. Marketed and brokered

by LandVest Timberlands,Wausau Paper reached separate agreements to sell

approximately 72,800 acres to The Lyme Timber Company and approximately 7,400

acres to The Forestland Group. Both transactions are expected to close prior to the end

of 2011.

Income tax obligations resulting from the sale transactions are expected to be offset by

losses associated with the previously announced 2012 closure of the Paper unit’s

Brokaw, Wisconsin, manufacturing facility, bonus depreciation associated with recent

capital investments and remaining cellulosic biofuels tax credits. The available tax

offsets provide cash efficiency by effectively deferring the tax obligation associated

with the transactions for a period of up to six years.

“Sale of our remaining timberlands is consistent with our approach to support

investment and growth in our highly successful Tissue business,” stated Thomas J.

Howatt, president and chief executive officer. “Sales proceeds will allow us to reduce

financing requirements associated with the Tissue expansion project and, combined

with our recently-announced exit from the Print & Color markets, narrows our focus to

attractive away-from-home tissue and growth-oriented technical markets.”