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Schweitzer-Mauduit Announces Third Quarter 2008 Results 

Schweitzer-Mauduit International, Inc. (NYSE: SWM) today reported third quarter 2008 net income of $6.7 million compared with a net loss of $4.3 million during the third quarter of 2007. Diluted earnings per share were $0.43 compared with a diluted loss per share of $0.27 in the prior-year quarter. Restructuring expenses decreased earnings per share during the third quarters of 2008 and 2007 by $0.11 and $0.73, respectively. Excluding restructuring expenses, earnings per share increased 17 percent to $0.54 for the third quarter of 2008 from $0.46 during the third quarter of 2007.

Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer, commented that, "The third quarter 2008 financial results for Schweitzer-Mauduit improved as expected relative to both the second quarter of 2008 and the third quarter of 2007. Earnings increased primarily due to higher sales volumes for reconstituted tobacco leaf, or RTL, and cigarette paper used in lower ignition propensity, or LIP, cigarettes. We also benefited from the January 2008 purchase of the 28 percent minority interest of LTR Industries, S.A., or LTRI. Operation of the rebuilt paper machine at our Papeteries de Mauduit, or PdM, mill in France, improved during the third quarter, but still contributed to an increase in production cost versus last year. We continue to experience significant inflationary cost increases, especially energy, and unfavorable currency impacts. As a result of increased earnings benefiting cash generation and continued reductions in capital spending, we lowered debt during the third quarter."

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