Mr. Francois Paroyan reports

KP TISSUE INCREASES QUARTERLY DIVIDEND TO $0.21 PER COMMON SHARE DUE TO THE CHANGE IN TAX DESIGNATION

KP Tissue Inc.'s board of directors has declared a quarterly dividend of 21 cents per common share, payable on July 15, 2026, to shareholders of record at the close of business on June 30, 2026, subject to applicable law.

The dividend is being declared in connection with the declaration of a corresponding quarterly dividend by Kruger Products Inc. (Kruger Products) in which KP Tissue holds a minority interest.

KP Tissue has increased this quarterly dividend, payable on July 15, 2026, from the historical amount of 18 cents per common share to 21 cents per common share (and Kruger Products has made a corresponding increase to its quarterly dividend), due to the change in designation from an eligible dividend to a non-eligible dividend for purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation, and the impact that this may have on certain of KP Tissue's shareholders. The other shareholders of Kruger Products (13582141 Canada Inc. and KPGP Inc., collectively) have elected to waive their right to a portion of the dividend payable by Kruger Products to its shareholders on July 15, 2026, such that, despite such increase to the common share dividend declared by Kruger Products, they will only receive the historical amount of 18 cents per common share. This change in designation is expected to continue with the next quarterly dividend (expected for payment in October, 2026) while KP Tissue and Kruger Products work toward being in a position to again designate dividends as eligible as soon as possible.

Dividend reinvestment plan

KP Tissue has a dividend reinvestment plan (the DRIP) under which eligible shareholders may elect to have their cash dividends reinvested in additional common shares of KP Tissue. Under the DRIP, KP Tissue will automatically reinvest for participating shareholders the cash dividends of KP Tissue in newly issued common shares at a price per common share equal to 100 per cent of the five-day weighted average trading price of the common shares prior to the dividend payment date.

Only Canadian shareholders are eligible to participate in the DRIP and the DRIP is subject to additional limitations and restrictions. Interested shareholders are encouraged to review the full text of the DRIP, available on KP Tissue's website.

Shareholders who wish to participate in the DRIP should contact their broker, financial institution or other nominee through which their common shares are held to determine their eligibility and provide appropriate enrolment instructions, and to ensure any deadlines or other requirements that such broker, financial institution, or nominee may impose or be subject to are met.

About KP Tissue Inc.

KP Tissue was created to acquire, and its business is limited to holding, a limited equity interest in Kruger Products, which is accounted for as an investment on the equity basis. KP Tissue currently holds a 12.0-per-cent interest in Kruger Products.

About Kruger Products Inc.

Kruger Products is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products serves the Canadian consumer market with such well-known brands as Cashmere, Purex, SpongeTowels, Scotties, White Swan and Bonterra. In the United States, Kruger Products manufactures the White Cloud brand, as well as many private label products. The away-from-home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. Kruger Products has approximately 3,000 employees and operates 10 FSC COC-certified (FSC C-104904) production facilities in North America.