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Schweitzer-Mauduit Announces First Quarter 2007 Results 

Schweitzer-Mauduit International, Inc. (NYSE: SWM) today reported a first quarter 2007 net income of $4.2 million compared with net income of $4.6 million during the first quarter of 2006. The first quarter of 2007 and 2006 included pre-tax restructuring expenses of $2.7 million and $0.5 million, respectively. The diluted earnings per share were $0.27 compared with diluted earnings per share of $0.30 in the prior-year quarter, a decrease of 10 percent. The restructuring expenses reduced first quarter 2007 and 2006 earnings per share by $0.11 and $0.02, respectively. The diluted earnings per share excluding restructuring expenses would have been $0.38 for the first quarter of 2007 and $0.32 for the first quarter of 2006, an increase of 19 percent.

Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer, commented that, "Schweitzer-Mauduit experienced improvement during the first quarter of 2007 in several areas of our business. Less production downtime occurred in our French reconstituted tobacco leaf business, we realized improved results from the production and sale of cigarette paper used in lower ignition propensity cigarettes, average selling prices increased somewhat and progress was made with the restructuring activities initiated in 2006.

"We are encouraged by the first quarter results which benefited from the implementation of our business plans. We remain committed to our previously announced strategies for restructuring our French and U.S. businesses to better balance capacity to available demand. An accelerating pace of sales growth is expected for cigarette paper used in lower ignition propensity cigarettes and increased demand has been experienced for reconstituted tobacco leaf products. Additional progress is anticipated in cost reduction activities underway across our business units and the benefits from these actions are expected to further offset the continuing, but reduced, unfavorable impacts of lower production volumes and inflationary cost increases that have been experienced during the last several years."

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