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PRYOR, Okla., April 17, 2017 -- On April 11, 2017, Orchids Paper Products Company (NYSE MKT: TIS) (the "Company") entered into Amendment No. 4 (the "Credit Agreement Amendment") to its Second Amended and Restated Credit Agreement dated June 25, 2015 by and among the Company, U.S. Bank National Association ("U.S. Bank") and the other lenders party thereto (the "Credit Agreement").

Details of the amendments include:

The maximum twelve-month rolling leverage ratio is waived in the first two quarters of 2017 and allowed to increase to 5.5:1 at September 30, 2017 prior to being decreased to 4.5:1 at December 31, 2017 and reverting to 3.5:1 as originally scheduled. These are attainable targets.

The funding-advance for the Barnwell, South Carolina, mill building was made concurrent with its actual completion in April of 2017, making approximately $6.7 million available to the Company.

The period during which funds may be drawn under the Draw Loan is extended to December 25, 2017 to support the continued development of the Barnwell, South Carolina project.

The maximum twelve-month rolling fixed charge coverage ratio is lowered to 1.0:1 and 1.05:1 for the quarters ended June 30, 2017 and September 30, 2017, respectively, prior to reverting to 1.2:1 as originally scheduled.

The Maintenance Capital Expenditure (as defined in the Credit Agreement) was reduced from approximately $6.0 million to $4.25 million, a more realistic figure and one that makes meeting the Fixed Charge Coverage Ratio covenant more attainable.

The definition of the Fixed Charge Coverage Ratio was modified. In combination with waivers and changes to the Leverage Ratios, these modifications provide the Company the time necessary to reduce its debt levels in an orderly manner through increased earnings from the new business previously announced, collection of certain outstanding receivables, and other potential actions which the Company is exploring.

"We are pleased to have the support of our lenders and appreciate their confidence in the Company's future," said Mr. Jeff Schoen, Chief Executive Officer. "The Company views the amendment as being supportive, particularly the waivers of the leverage-ratio covenants in the first and second quarters of 2017, bridging the period in 2017 when operations are ramping-up to meet new demand. These covenant changes allow Orchids to focus on its business plan to increase production and sales significantly in the second half of 2017. The new business we announced in January is on track to begin shipping in late May with full implementation by July 1."

The foregoing summaries are not complete and are qualified in their entirety by reference to the full text of the Amendments attached to the associated Form 8-K.


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