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PRESS RELEASE
 FOR IMMEDIATE RELEASE
 August 13, 2007
    
    
    Contact: Keith SchroederChief Financial Officer andInterim President and CEO(918) 825-0616
 ORCHIDS PAPER PRODUCTS COMPANY REPORTS FINANCIAL RESULTS
FOR SECOND QUARTER AND FIRST SIX MONTHS OF 2007
    -35-




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-36-




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About Orchids Paper Products Company
 http://www.orchidspaper.com
  
    
    the Companys business strategy;
    
    the market opportunity for the Companys products, including expected demand for its
products;
    
    productivity and cost effectiveness; and
    
    any of the Companys other plans, objectives, expectations and intentions contained in
this release that are not historical facts.
   -37-




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The Companys actual results may be materially different from what it expects. The Company does
not undertake any duty to update these forward-looking statements after the date hereof, even
though the Companys situation may change in the future. All of the forward-looking statements
herein are qualified by these cautionary statements.
 -38-




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Orchids Paper Products Company
Selected Financial Data
(in thousands, except net selling price per ton, tonnage, cost per ton and per share data)
 Three Months Ended June 30,
    
    
    Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net Sales
    
    $
    18,515
    
    
    $
    13,675
    
    
    $
    35,152
    
    
    $
    27,774Cost of Sales
    
    
    15,567
    
    
    
    12,669
    
    
    
    30,334
    
    
    
    25,205Gross Profit
    
    
    2,948
    
    
    
    1,006
    
    
    
    4,818
    
    
    
    2,569Selling, General and Administrative Expenses
    
    
    1,365
    
    
    
    1,281
    
    
    
    2,562
    
    
    
    2,529Operating Income (Loss)
    
    
    1,583
    
    
    
    (275
    )
    
    
    2,256
    
    
    
    40Interest Expense
    
    
    708
    
    
    
    243
    
    
    
    1,581
    
    
    
    290Other (Income) Expense, net
    
    
    (7
    )
    
    
    (51
    )
    
    
    (27
    )
    
    
    (63
    )Income (Loss) Before Income Taxes
    
    
    882
    
    
    
    (467
    )
    
    
    702
    
    
    
    (187
    )Provision (Benefit) for Income Taxes
    
    
    139
    
    
    
    (174
    )
    
    
    90
    
    
    
    (76
    )Net Income (Loss)
    
    $
    743
    
    
    $
    (293
    )
    
    $
    612
    
    
    $
    (111
    )Net income (loss) per share:Basic
    
    $
    0.12
    
    
    $
    (0.05
    )
    
    $
    0.10
    
    
    $
    (0.02
    )Diluted
    
    $
    0.12
    
    
    $
    (0.05
    )(1)
    
    $
    0.10
    
    
    $
    (0.02
    )(1)Other Income Statement Data:Depreciation
    
    $
    749
    
    
    $
    393
    
    
    $
    1,498
    
    
    $
    786Commission Expense
    
    $
    256
    
    
    $
    193
    
    
    $
    478
    
    
    $
    391Earnings Before Interest, Income Taxes,
Depreciation and Amortization (EBITDA)
    
    $
    2,339
    
    
    $
    169
    
    
    $
    3,781
    
    
    $
    889Operating Data:Total Tons Shipped
    
    
    12,816
    
    
    
    8,756
    
    
    
    23,977
    
    
    
    17,974Net Selling Price per Ton
    
    $
    1,445
    
    
    $
    1,562
    
    
    $
    1,466
    
    
    $
    1,545Total Paper Cost per Ton Consumed
    
    $
    735
    
    
    $
    862
    
    
    $
    756
    
    
    $
    865Total Paper Cost
    
    $
    9,418
    
    
    $
    7,549
    
    
    $
    18,115
    
    
    $
    15,540Cash Flow Data:Cash Flow Provided by (Used in):Operating Activities
    
    $
    979
    
    
    $
    1,260
    
    
    $
    1,909
    
    
    $
    1,297Investing Activities
    
    $
    1,357
    
    
    $
    (6,329
    )
    
    $
    1,280
    
    
    $
    (15,105
    )Financing Activities
    
    $
    (2,335
    )
    
    $
    5,070
    
    
    $
    (3,188
    )
    
    $
    13,435
 Balance Sheet Data:
 As ofJune 30,
    
    December 31,2007
    
    2006Working Capital
    
    $
    4,142
    
    
    $
    5,025Net Property, Plant and Equipment
    
    $
    56,761
    
    
    $
    58,039Total Assets
    
    $
    69,341
    
    
    $
    71,028Long-Term Debt, net of current portion
    
    $
    28,559
    
    
    $
    31,575Total Stockholders Equity
    
    $
    25,485
    
    
    $
    24,704
 
 (1)
    
    Due to net loss, warrant and option shares are anti-dilutive, thus not considered. -39-