| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------------|
|   | For the quarterly period ended June 30, 2012                                            |

| o      | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|
|   | For the transition period from __________ to __________                                  |

----

| Delaware                                |   | 001-34056                |   | 75-3217389                          |
|-----------------------------------------|--------|--------------------------|--------|-------------------------------------|
| (State of Incorporationor Organization) |   | (Commission File Number) |   | (IRS EmployerIdentification Number) |

----

----

| Delaware                                |   | 333-142283               |   | 56-2597634                          |
|-----------------------------------------|--------|--------------------------|--------|-------------------------------------|
| (State of Incorporationor Organization) |   | (Commission File Number) |   | (IRS EmployerIdentification Number) |

----

|   | Verso Paper Corp.        | þ Yes o No     |
|--------|--------------------------|-----------------------------------------|
|   | Verso Paper Holdings LLC | þ Yes o No     |

|   | Verso Paper Corp.        | þ Yes o No     |
|--------|--------------------------|-----------------------------------------|
|   | Verso Paper Holdings LLC | þ Yes o No     |

----

| Verso Paper Corp.              |                     |                                          |                       |
|--------------------------------|--------------------------|-----------------------------------------------|----------------------------|
| Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ             | Smaller reporting companyo |
|                           |                     | (Do not check if a smaller reporting company) |
|                           |                     |                                          |                       |
| Verso Paper Holdings LLC       |                     |                                          |                       |
| Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ             | Smaller reporting companyo |
|                 |                     | (Do not check if a smaller reporting company) |

|   | Verso Paper Corp.        | o Yes þ No     |
|--------|--------------------------|-----------------------------------------|
|   | Verso Paper Holdings LLC | o Yes þ No     |

----

----

| PART I. FINANCIAL INFORMATION | Page                                                                                                        |
|-------------------------------|-------------------------------------------------------------------------------------------------------------|
|                          |                                                                                                        |   |
| Item 1.                       | Financial Statements                                                                                        |   |
|                          |                                                                                                        |   |
|                          | Unaudited Condensed Consolidated Balance Sheets                                                             | 4 |
|                          |                                                                                                        |   |
|                          | Unaudited Condensed Consolidated Statements of Operations of Verso Paper Corp.                              | 5 |
|                          |                                                                                                        |   |
|                          | Unaudited Condensed Consolidated Statements of Comprehensive Income of Verso Paper Corp.                    | 5 |
|                          |                                                                                                        |   |
|                          | Unaudited Condensed Consolidated Statements of Operations of Verso Paper Holdings LLC                       | 6 |
|                          |                                                                                                        |   |
|                          | Unaudited Condensed Consolidated Statements of Comprehensive Income of Verso Paper Holdings LLC             | 6 |
|                          |                                                                                                        |   |
|                          | Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity of Verso Paper Corp.   | 7 |
|                          |                                                                                                        |   |
|                          | Unaudited Condensed Consolidated Statements of Changes in Member’s Equity of Verso Paper Holdings LLC | 7 |
|                          |                                                                                                        |   |
|                          | Unaudited Condensed Consolidated Statements of Cash Flows                                                   | 8 |
|                          |                                                                                                        |   |
|                          | Notes to Unaudited Condensed Consolidated Financial Statements                                              | 9 |
|                          |                                                                                                        |   |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations                 | 32 |
|                          |                                                                                                        |   |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk                                                  | 43 |
|                          |                                                                                                        |   |
| Item 4.                       | Controls and Procedures                                                                                     | 45 |
|                          |

| PART II. OTHER INFORMATION |
|----------------------------|
|                       |   |   |
| Item 1.                    | Legal Proceedings | 46 |
|                       |   |   |
| Item 1A.                   | Risk Factors | 46 |
|                       |   |   |
| Item 2.                    | Unregistered Sales of Equity Securities and Use of Proceeds | 46 |
|                       |   |   |
| Item 3.                    | Defaults Upon Senior Securities | 46 |
|                       |   |   |
| Item 4.                    | Mine Safety Disclosures | 46 |
|                       |   |   |
| Item 5.                    | Other Information | 46 |
|                       |   |   |
| Item 6                     | Exhibits | 47 |
|                       |   |
| SIGNATURES                 | 49 |
|                       |   |
| EXHIBIT INDEX              | 50 |

----

| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS                     |   |
|---------------------------------------------------------------------|--------|
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | VERSO PAPER |   |   | VERSO HOLDINGS |   |
|                                                                |   | June 30, |   |   | December 31, |   |   | June 30, |   |   | December 31, |   |
| (Dollars in thousands, except per share amounts)                    |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| ASSETS                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Current assets:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                           |   | $ | 21,154 |   |   | $ | 94,869 |   |   | $ | 21,080 |   |   | $ | 94,795 |   |
| Accounts receivable, net                                            |   |   | 112,107 |   |   |   | 128,086 |   |   |   | 112,233 |   |   |   | 128,213 |   |
| Inventories                                                         |   |   | 170,185 |   |   |   | 166,876 |   |   |   | 170,185 |   |   |   | 166,876 |   |
| Prepaid expenses and other assets                                   |   |   | 3,523 |   |   |   | 3,239 |   |   |   | 3,313 |   |   |   | 3,238 |   |
| Total current assets                                                |   |   | 306,969 |   |   |   | 393,070 |   |   |   | 306,811 |   |   |   | 393,122 |   |
| Property, plant, and equipment, net                                 |   |   | 897,624 |   |   |   | 934,699 |   |   |   | 897,624 |   |   |   | 934,699 |   |
| Reforestation                                                       |   |   | 12,932 |   |   |   | 13,671 |   |   |   | 12,932 |   |   |   | 13,671 |   |
| Intangibles and other assets, net                                   |   |   | 96,231 |   |   |   | 80,035 |   |   |   | 119,537 |   |   |   | 102,950 |   |
| Total assets                                                        |   | $ | 1,313,756 |   |   | $ | 1,421,475 |   |   | $ | 1,336,904 |   |   | $ | 1,444,442 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                                    |   | $ | 107,108 |   |   | $ | 109,683 |   |   | $ | 107,831 |   |   | $ | 110,589 |   |
| Accrued liabilities                                                 |   |   | 96,770 |   |   |   | 140,756 |   |   |   | 95,814 |   |   |   | 139,682 |   |
| Current maturities of long-term debt                                |   |   | 87,662 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total current liabilities                                           |   |   | 291,540 |   |   |   | 250,439 |   |   |   | 203,645 |   |   |   | 250,271 |   |
| Long-term debt                                                      |   |   | 1,203,483 |   |   |   | 1,262,459 |   |   |   | 1,226,788 |   |   |   | 1,201,077 |   |
| Other liabilities                                                   |   |   | 60,558 |   |   |   | 62,465 |   |   |   | 52,458 |   |   |   | 54,278 |   |
| Total liabilities                                                   |   |   | 1,555,581 |   |   |   | 1,575,363 |   |   |   | 1,482,891 |   |   |   | 1,505,626 |   |
| Commitments and contingencies (Note 12)                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Equity:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock -- par value $0.01 (20,000,000 shares authorized,   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| no shares issued)                                                   |   |   | - |   |   |   | - |   |   |   | n/a |   |   |   | n/a |   |
| Common stock -- par value $0.01 (250,000,000 shares authorized      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| with 52,951,379 shares issued and 52,907,984 outstanding            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on June 30, 2012, and 52,630,965 shares issued and                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 52,605,314 outstanding on December 31, 2011)                        |   |   | 530 |   |   |   | 526 |   |   |   | n/a |   |   |   | n/a |   |
| Treasury stock -- at cost (43,395 shares on June 30, 2012 and       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 25,651 shares on December 31, 2011)                                 |   |   | (64 | ) |   |   | (53 | ) |   |   | n/a |   |   |   | n/a |   |
| Paid-in-capital                                                     |   |   | 218,128 |   |   |   | 216,485 |   |   |   | 322,757 |   |   |   | 321,110 |   |
| Retained deficit                                                    |   |   | (436,799 | ) |   |   | (342,188 | ) |   |   | (445,124 | ) |   |   | (353,636 | ) |
| Accumulated other comprehensive loss                                |   |   | (23,620 | ) |   |   | (28,658 | ) |   |   | (23,620 | ) |   |   | (28,658 | ) |
| Total deficit                                                       |   |   | (241,825 | ) |   |   | (153,888 | ) |   |   | (145,987 | ) |   |   | (61,184 | ) |
| Total liabilities and equity                                        |   | $ | 1,313,756 |   |   | $ | 1,421,475 |   |   | $ | 1,336,904 |   |   | $ | 1,444,442 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to unaudited condensed consolidated financial statements. |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| VERSO PAPER CORP.                                                   |   |
|---------------------------------------------------------------------|--------|
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS           |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   | Three Months Ended |   |   | Six Months Ended |   |
|                                                                |   |   | June 30, |   |   | June 30, |   |
| (Dollars in thousands, except per share amounts)                    |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Net sales                                                           |   | $ | 365,262 |   |   | $ | 398,779 |   |   | $ | 740,557 |   |   | $ | 815,371 |   |
| Costs and expenses:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of products sold - (exclusive of depreciation, amortization,   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        and depletion)            |   |   | 323,185 |   |   |   | 338,480 |   |   |   | 660,465 |   |   |   | 691,008 |   |
| Depreciation, amortization, and depletion                           |   |   | 31,777 |   |   |   | 31,645 |   |   |   | 63,200 |   |   |   | 62,992 |   |
| Selling, general, and administrative expenses                       |   |   | 19,930 |   |   |   | 21,667 |   |   |   | 38,748 |   |   |   | 40,301 |   |
| Restructuring and other charges                                     |   |   |   | (106 | ) |   |   | - |   |   |   | (21 | ) |   |   | - |   |
| Total operating expenses                                            |   |   | 374,786 |   |   |   | 391,792 |   |   |   | 762,392 |   |   |   | 794,301 |   |
| Operating income (loss)                                             |   |   | (9,524 | ) |   |   | 6,987 |   |   |   | (21,835 | ) |   |   | 21,070 |   |
| Interest income                                                     |   |   | (2 | ) |   |   | (33 | ) |   |   | (4 | ) |   |   | (67 | ) |
| Interest expense                                                    |   |   | 33,228 |   |   |   | 31,552 |   |   |   | 65,347 |   |   |   | 63,941 |   |
| Other (income) loss, net                                       |   |   | (22,077 | ) |   |   | (236 | ) |   |   | 7,493 |   |   |   | 26,091 |   |
| Loss before income taxes                                            |   |   | (20,673 | ) |   |   | (24,296 | ) |   |   | (94,671 | ) |   |   | (68,895 | ) |
| Income tax expense (benefit)                                        |   |   | 9 |   |   |   | - |   |   |   | (60 | ) |   |   | (2 | ) |
| Net loss                                                            |   | $ | (20,682 | ) |   | $ | (24,296 | ) |   | $ | (94,611 | ) |   | $ | (68,893 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss per common share                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                               |   | $ | (0.39 | ) |   | $ | (0.46 | ) |   | $ | (1.79 | ) |   | $ | (1.31 | ) |
| Diluted                                                             |   |   | (0.39 | ) |   |   | (0.46 | ) |   |   | (1.79 | ) |   |   | (1.31 | ) |
| Weighted average common shares outstanding (in thousands)           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                               |   |   | 52,908 |   |   |   | 52,623 |   |   |   | 52,797 |   |   |   | 52,577 |   |
| Diluted                                                             |   |   | 52,908 |   |   |   | 52,623 |   |   |   | 52,797 |   |   |   | 52,577 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to unaudited condensed consolidated financial statements. |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                         |   |               |    |   |             |   |    |   |   |   |    |   |
|------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|---------|--------|--------|--------|---------|--------|
| VERSO PAPER CORP.                                                            |   |
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME          |   |
|                                                                         |   |               |    |   |             |   |    |   |   |   |    |   |
|                                                                         |   | Three Months Ended |    |   | Six Months Ended |   |
|                                                                         |   | June 30,           |    |   | June 30,         |   |
| (Dollars in thousands)                                                       |   | 2012               |    |   | 2011             |   |    | 2012   |   |   | 2011    |   |
| Net Loss                                                                     |   | $                  | (20,682 | )      |             | $      | (24,296 | )      |   | $      | (94,611 | )      |   | $ | (68,893 | ) |
| Other comprehensive income (loss):                                           |   |               |    |   |             |   |    |   |   |   |    |   |   |   |   |   |
| Derivative financial instruments:                                            |   |               |    |   |             |   |    |   |   |   |    |   |   |   |   |   |
| Effective portion of net unrealized losses                                   |   |               | -       |   |             |   | (1,171  | )      |   |   | (1,365  | )      |   |   | (1,337 | ) |
| Reclassification from accumulated other comprehensive loss to net loss       |   |               | 515     |   |             |   | 584     |   |   |   | 5,155   |   |   |   | 1,855 |   |
| Defined benefit pension plan amortization of net loss and prior service cost |   |               | 564     |   |             |   | 393     |   |   |   | 1,129   |   |   |   | 785 |   |
| Other                                                                        |   |               | -       |   |             |   | (5      | )      |   |   | 119     |   |   |   | 3 |   |
| Other comprehensive income (loss)                                            |   |               | 1,079   |   |             |   | (199    | )      |   |   | 5,038   |   |   |   | 1,306 |   |
| Comprehensive loss                                                           |   | $                  | (19,603 | )      |             | $      | (24,495 | )      |   | $      | (89,573 | )      |   | $ | (67,587 | ) |
|                                                                         |   |               |    |   |             |   |    |   |   |   |    |   |   |   |   |   |
| See notes to unaudited condensed consolidated financial statements.          |   |               |    |   |             |   |    |   |   |   |    |   |   |   |   |   |

----

| VERSO PAPER HOLDINGS LLC                                            |   |
|---------------------------------------------------------------------|--------|
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS           |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   | Three Months Ended |   |   | Six Months Ended |   |
|                                                                |   |   | June 30, |   |   | June 30, |   |
| (Dollars in thousands, except per share amounts)                    |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Net sales                                                           |   | $ | 365,262 |   |   | $ | 398,779 |   |   | $ | 740,557 |   |   | $ | 815,371 |   |
| Costs and expenses:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of products sold - (exclusive of depreciation, amortization,   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       and depletion)                       |   |   | 323,185 |   |   |   | 338,480 |   |   |   | 660,465 |   |   |   | 691,008 |   |
| Depreciation, amortization, and depletion                           |   |   | 31,777 |   |   |   | 31,645 |   |   |   | 63,200 |   |   |   | 62,992 |   |
| Selling, general, and administrative expenses                       |   |   | 19,930 |   |   |   | 21,667 |   |   |   | 38,697 |   |   |   | 40,250 |   |
| Restructuring and other charges                                     |   |   |   | (106 | ) |   |   | - |   |   |   | (21 | ) |   |   | - |   |
| Total operating expenses                                            |   |   | 374,786 |   |   |   | 391,792 |   |   |   | 762,341 |   |   |   | 794,250 |   |
| Operating income (loss)                                             |   |   | (9,524 | ) |   |   | 6,987 |   |   |   | (21,784 | ) |   |   | 21,121 |   |
| Interest income                                                     |   |   | (382 | ) |   |   | (412 | ) |   |   | (762 | ) |   |   | (824 | ) |
| Interest expense                                                    |   |   | 31,993 |   |   |   | 30,471 |   |   |   | 62,910 |   |   |   | 61,815 |   |
| Other (income) loss, net                                       |   |   | (22,077 | ) |   |   | (236 | ) |   |   | 7,493 |   |   |   | 25,940 |   |
| Net loss                                                            |   | $ | (19,058 | ) |   | $ | (22,836 | ) |   | $ | (91,425 | ) |   | $ | (65,810 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to unaudited condensed consolidated financial statements. |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                         |   |               |    |   |             |   |    |   |   |   |    |   |
|------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|---------|--------|--------|--------|---------|--------|
| VERSO PAPER HOLDINGS LLC                                                     |   |
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME          |   |
|                                                                         |   |               |    |   |             |   |    |   |   |   |    |   |
|                                                                         |   | Three Months Ended |    |   | Six Months Ended |   |
|                                                                         |   | June 30,           |    |   | June 30,         |   |
| (Dollars in thousands)                                                       |   | 2012               |    |   | 2011             |   |    | 2012   |   |   | 2011    |   |
| Net Loss                                                                     |   | $                  | (19,058 | )      |             | $      | (22,836 | )      |   | $      | (91,425 | )      |   | $ | (65,810 | ) |
| Other comprehensive income (loss):                                           |   |               |    |   |             |   |    |   |   |   |    |   |   |   |   |   |
| Derivative financial instruments:                                            |   |               |    |   |             |   |    |   |   |   |    |   |   |   |   |   |
| Effective portion of net unrealized losses                                   |   |               | -       |   |             |   | (1,171  | )      |   |   | (1,365  | )      |   |   | (1,337 | ) |
| Reclassification from accumulated other comprehensive loss to net loss       |   |               | 515     |   |             |   | 584     |   |   |   | 5,155   |   |   |   | 1,855 |   |
| Defined benefit pension plan amortization of net loss and prior service cost |   |               | 564     |   |             |   | 393     |   |   |   | 1,129   |   |   |   | 785 |   |
| Other                                                                        |   |               | -       |   |             |   | (5      | )      |   |   | 119     |   |   |   | 3 |   |
| Other comprehensive income (loss)                                            |   |               | 1,079   |   |             |   | (199    | )      |   |   | 5,038   |   |   |   | 1,306 |   |
| Comprehensive loss                                                           |   | $                  | (17,979 | )      |             | $      | (23,035 | )      |   | $      | (86,387 | )      |   | $ | (64,504 | ) |
|                                                                         |   |               |    |   |             |   |    |   |   |   |    |   |   |   |   |   |
| See notes to unaudited condensed consolidated financial statements.          |   |               |    |   |             |   |    |   |   |   |    |   |   |   |   |   |

----

| VERSO PAPER CORP.                                                              |   |
|--------------------------------------------------------------------------------|--------|
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY |   |
| FOR THE PERIODS ENDED JUNE 30, 2012 AND 2011                                   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Other |   |   | Total |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Total |   |   | Comprehensive |   |   | Stockholders' |   |
|                                                                           |   | Common |   |   | Common |   |   | Treasury |   |   | Treasury |   |   | Paid-in- |   |   | Retained |   |   | Income |   |   | Equity |   |
| (Dollars and shares in thousands)                                              |   | Shares |   |   | Stock |   |   | Shares |   |   | Stock |   |   | Capital |   |   | Deficit |   |   | (Loss) |   |   | (Deficit) |   |
| Balance - December 31, 2010                                                    |   |   | 52,467 |   |   | $ | 525 |   |   |   | - |   |   | $ | - |   |   | $ | 214,050 |   |   | $ | (205,127 | ) |   | $ | (16,254 | ) |   | $ | (6,806 | ) |
| Net loss                                                                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (68,893 | ) |   |   | - |   |   |   | (68,893 | ) |
| Other comprehensive income                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,306 |   |   |   | 1,306 |   |
| Common stock issued for restricted stock                                       |   |   | 158 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | (2 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Stock option exercise                                                          |   |   | 6 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15 |   |   |   | - |   |   |   | - |   |   |   | 15 |   |
| Cancellation of restricted stock                                               |   |   | (10 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Equity award expense                                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,293 |   |   |   | - |   |   |   | - |   |   |   | 1,293 |   |
| Balance - June 30, 2011                                                        |   |   | 52,621 |   |   | $ | 527 |   |   |   | - |   |   | $ | - |   |   | $ | 215,356 |   |   | $ | (274,020 | ) |   | $ | (14,948 | ) |   | $ | (73,085 | ) |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance - December 31, 2011                                                    |   |   | 52,631 |   |   | $ | 526 |   |   |   | (26 | ) |   | $ | (53 | ) |   | $ | 216,485 |   |   | $ | (342,188 | ) |   | $ | (28,658 | ) |   | $ | (153,888 | ) |
| Net loss                                                                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (94,611 | ) |   |   | - |   |   |   | (94,611 | ) |
| Other comprehensive income                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,038 |   |   |   | 5,038 |   |
| Common stock issued for restricted stock, net                                  |   |   | 320 |   |   |   | 4 |   |   |   | (17 | ) |   |   | (11 | ) |   |   | (4 | ) |   |   | - |   |   |   | - |   |   |   | (11 | ) |
| Equity award expense                                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,647 |   |   |   | - |   |   |   | - |   |   |   | 1,647 |   |
| Balance - June 30, 2012                                                        |   |   | 52,951 |   |   | $ | 530 |   |   |   | (43 | ) |   | $ | (64 | ) |   | $ | 218,128 |   |   | $ | (436,799 | ) |   | $ | (23,620 | ) |   | $ | (241,825 | ) |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to unaudited condensed consolidated financial statements.            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| VERSO PAPER HOLDINGS LLC                                                  |   |
|---------------------------------------------------------------------------|--------|
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY |   |
| FOR THE PERIODS ENDED JUNE 30, 2012 AND 2011                              |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   | Other |   |   | Total |   |
|                                                                      |   |   |   |   |   |   |   | Comprehensive |   |   | Member's |   |
|                                                                      |   | Paid-in- |   |   | Retained |   |   | Income |   |   | Equity |   |
| (Dollars in thousands)                                                    |   | Capital |   |   | Deficit |   |   | (Loss) |   |   | (Deficit) |   |
| Balance - December 31, 2010                                               |   | $ | 318,690 |   |   | $ | (231,019 | ) |   | $ | (16,254 | ) |   | $ | 71,417 |   |
| Net loss                                                                  |   |   | - |   |   |   | (65,810 | ) |   |   | - |   |   |   | (65,810 | ) |
| Other comprehensive income                                                |   |   | - |   |   |   | - |   |   |   | 1,306 |   |   |   | 1,306 |   |
| Equity award expense                                                      |   |   | 1,293 |   |   |   | - |   |   |   | - |   |   |   | 1,293 |   |
| Balance - June 30, 2011                                                   |   | $ | 319,983 |   |   | $ | (296,829 | ) |   | $ | (14,948 | ) |   | $ | 8,206 |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance - December 31, 2011                                               |   | $ | 321,110 |   |   | $ | (353,636 | ) |   | $ | (28,658 | ) |   | $ | (61,184 | ) |
| Cash distributions                                                        |   |   | - |   |   |   | (63 | ) |   |   | - |   |   |   | (63 | ) |
| Net loss                                                                  |   |   | - |   |   |   | (91,425 | ) |   |   | - |   |   |   | (91,425 | ) |
| Other comprehensive income                                                |   |   | - |   |   |   | - |   |   |   | 5,038 |   |   |   | 5,038 |   |
| Equity award expense                                                      |   |   | 1,647 |   |   |   | - |   |   |   | - |   |   |   | 1,647 |   |
| Balance - June 30, 2012                                                   |   | $ | 322,757 |   |   | $ | (445,124 | ) |   | $ | (23,620 | ) |   | $ | (145,987 | ) |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to unaudited condensed consolidated financial statements.       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                   |   |
|-----------------------------------------------------------------------------|--------|
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   | VERSO PAPER |   |   | VERSO HOLDINGS |   |
|                                                                        |   | Six Months Ended |   |   | Six Months Ended |   |
|                                                                        |   | June 30, |   |   | June 30, |   |
| (Dollars in thousands)                                                      |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Cash Flows From Operating Activities:                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                    |   | $ | (94,611 | ) |   | $ | (68,893 | ) |   | $ | (91,425 | ) |   | $ | (65,810 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation, amortization, and depletion                                   |   |   | 63,200 |   |   |   | 62,992 |   |   |   | 63,200 |   |   |   | 62,992 |   |
| Amortization of debt issuance costs                                         |   |   | 2,603 |   |   |   | 2,740 |   |   |   | 2,423 |   |   |   | 2,560 |   |
| Accretion of discount on long-term debt                                     |   |   | 1,157 |   |   |   | 2,038 |   |   |   | 1,157 |   |   |   | 2,038 |   |
| Loss on early extinguishment of debt, net                                   |   |   | 8,244 |   |   |   | 26,091 |   |   |   | 8,244 |   |   |   | 26,091 |   |
| Loss (gain) on disposal of fixed assets                                     |   |   | (728 | ) |   |   | 215 |   |   |   | (728 | ) |   |   | 215 |   |
| Equity award expense                                                        |   |   | 1,647 |   |   |   | 1,293 |   |   |   | 1,647 |   |   |   | 1,293 |   |
| Other - net                                                                 |   |   | 1,191 |   |   |   | (439 | ) |   |   | 1,191 |   |   |   | (439 | ) |
| Changes in assets and liabilities:                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                                         |   |   | 15,979 |   |   |   | (28,004 | ) |   |   | 15,979 |   |   |   | (28,126 | ) |
| Inventories                                                                 |   |   | (8,086 | ) |   |   | (53,225 | ) |   |   | (8,086 | ) |   |   | (53,225 | ) |
| Prepaid expenses and other assets                                           |   |   | 6,627 |   |   |   | (423 | ) |   |   | 6,627 |   |   |   | (400 | ) |
| Accounts payable                                                            |   |   | (4,092 | ) |   |   | 2,534 |   |   |   | (4,274 | ) |   |   | 2,477 |   |
| Accrued liabilities                                                         |   |   | (39,635 | ) |   |   | (7,074 | ) |   |   | (42,407 | ) |   |   | (9,806 | ) |
| Net cash used in operating activities                                       |   |   | (46,504 | ) |   |   | (60,155 | ) |   |   | (46,452 | ) |   |   | (60,140 | ) |
| Cash Flows From Investing Activities:                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from sale of fixed assets                                          |   |   | 1,452 |   |   |   | 182 |   |   |   | 1,452 |   |   |   | 182 |   |
| Transfers (to) from restricted cash, net                                    |   |   | (559 | ) |   |   | 9,624 |   |   |   | (559 | ) |   |   | 9,624 |   |
| Capital expenditures                                                        |   |   | (31,072 | ) |   |   | (40,006 | ) |   |   | (31,072 | ) |   |   | (40,006 | ) |
| Net cash used in investing activities                                       |   |   | (30,179 | ) |   |   | (30,200 | ) |   |   | (30,179 | ) |   |   | (30,200 | ) |
| Cash Flows From Financing Activities:                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings on revolving credit facilities                                   |   |   | 90,000 |   |   |   | - |   |   |   | 90,000 |   |   |   | - |   |
| Payments on revolving credit facilities                                     |   |   | (50,000 | ) |   |   | - |   |   |   | (50,000 | ) |   |   | - |   |
| Proceeds from long-term debt                                                |   |   | 341,191 |   |   |   | 394,618 |   |   |   | 341,191 |   |   |   | 394,618 |   |
| Debt issuance costs                                                         |   |   | (23,228 | ) |   |   | (10,667 | ) |   |   | (23,228 | ) |   |   | (10,667 | ) |
| Repayments of long-term debt                                                |   |   | (354,984 | ) |   |   | (389,998 | ) |   |   | (354,984 | ) |   |   | (389,998 | ) |
| Cash distributions                                                          |   |   | - |   |   |   | - |   |   |   | (63 | ) |   |   |   |   |
| Acquisition of treasury stock                                               |   |   | (11 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Proceeds from issuance of common stock                                      |   |   | - |   |   |   | 15 |   |   |   | - |   |   |   | - |   |
| Net cash provided by (used in) financing activities                         |   |   | 2,968 |   |   |   | (6,032 | ) |   |   | 2,916 |   |   |   | (6,047 | ) |
| Change in cash and cash equivalents                                         |   |   | (73,715 | ) |   |   | (96,387 | ) |   |   | (73,715 | ) |   |   | (96,387 | ) |
| Cash and cash equivalents at beginning of period                            |   |   | 94,869 |   |   |   | 152,780 |   |   |   | 94,795 |   |   |   | 152,706 |   |
| Cash and cash equivalents at end of period                                  |   | $ | 21,154 |   |   | $ | 56,393 |   |   | $ | 21,080 |   |   | $ | 56,319 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to unaudited condensed consolidated financial statements.         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2012, AND DECEMBER 31, 2011, AND FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2012 AND 2011
 

----

| 1.  | BACKGROUND AND BASIS OF PRESENTATION |
|----------|--------------------------------------|

| 2.  | RECENT ACCOUNTING DEVELOPMENTS |
|----------|--------------------------------|

----

| 3.  | SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION |
|----------|----------------------------------------------|

|                                                 |   |               |    |   |             |   |    |   |   |   |    |   |
|------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|---------|--------|--------|--------|---------|--------|
|                                                 |   | VERSO PAPER        |    |
|                                                 |   | Three Months Ended |    |   | Six Months Ended |   |
|                                                 |   | June 30,           |    |   | June 30,         |   |
| (In thousands, except per share data)                |   | 2012               |    |   | 2011             |   |    | 2012   |   |   | 2011    |   |
| Net loss available to common shareholders            |   | $                  | (20,682 | )      |             | $      | (24,296 | )      |   | $      | (94,611 | )      |   | $ | (68,893 | ) |
|                                                 |   |               |    |   |             |   |    |   |   |   |    |   |   |   |   |   |
| Weighted average common stock outstanding            |   |               | 52,351  |   |             |   | 52,163  |   |   |   | 52,326  |   |   |   | 52,162 |   |
| Weighted average restricted stock                    |   |               | 557     |   |             |   | 460     |   |   |   | 471     |   |   |   | 415 |   |
| Weighted average common shares outstanding - basic   |   |               | 52,908  |   |             |   | 52,623  |   |   |   | 52,797  |   |   |   | 52,577 |   |
| Dilutive shares from stock options                   |   |               | -       |   |             |   | -       |   |   |   | -       |   |   |   | - |   |
| Weighted average common shares outstanding - diluted |   |               | 52,908  |   |             |   | 52,623  |   |   |   | 52,797  |   |   |   | 52,577 |   |
|                                                 |   |               |    |   |             |   |    |   |   |   |    |   |   |   |   |   |
| Basic loss per share                                 |   | $                  | (0.39   | )      |             | $      | (0.46   | )      |   | $      | (1.79   | )      |   | $ | (1.31 | ) |
|                                                 |   |               |    |   |             |   |    |   |   |   |    |   |   |   |   |   |
| Diluted loss per share                               |   | $                  | (0.39   | )      |             | $      | (0.46   | )      |   | $      | (1.79   | )      |   | $ | (1.31 | ) |

----

|                                 |   |     |    |   |         |   |
|--------------------------------------|--------|----------|---------|--------|--------------|--------|
|                                 |   | June 30, |    |   | December 31, |   |
| (Dollars in thousands)               |   | 2012     |    |   | 2011         |   |
| Raw materials                        |   | $        | 32,450  |   |         | $      | 27,953 |   |
| Woodyard logs                        |   |     | 8,902   |   |         |   | 5,931 |   |
| Work-in-process                      |   |     | 15,334  |   |         |   | 19,120 |   |
| Finished goods                       |   |     | 85,078  |   |         |   | 87,585 |   |
| Replacement parts and other supplies |   |     | 28,421  |   |         |   | 26,287 |   |
| Inventories                          |   | $        | 170,185 |   |         | $      | 166,876 |   |
|                                 |   |     |    |   |         |   |   |   |

----

|                                    |   | Six Months Ended June 30, |   |
|-----------------------------------------|--------|---------------------------|--------|
| (Dollars in thousands)                  |   | 2012                      |   |   | 2011 |   |
| Asset retirement obligations, January 1 |   | $                         | 11,233 |   |   | $ | 13,660 |   |
| Accretion expense                       |   |                      | 406    |   |   |   | 417 |   |
| Settlement of existing liabilities      |   |                      | (106   | ) |   |   | (104 | ) |
| Adjustment to existing liabilities      |   |                      | 419    |   |   |   | (1,032 | ) |
| Asset retirement obligations, June 30   |   | $                         | 11,952 |   |   | $ | 12,941 |   |

----

|                                                                                           |   | VERSO PAPER |   |   | VERSO HOLDINGS |   |
|------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|----------------|--------|
|                                                                                           |   | June 30,    |   |   | December 31,   |   |   | June 30, |   |   | December 31, |   |
| (Dollars in thousands)                                                                         |   | 2012        |   |   | 2011           |   |   | 2012 |   |   | 2011 |   |
| Amortizable intangible assets:                                                                 |   |        |   |   |           |   |   |   |   |   |   |   |
| Customer relationships, net of accumulated amortization of $7.1 million                        |   |        |   |   |           |   |   |   |   |   |
|    on June 30, 2012, and $6.7 million on December 31, 2011                      |   | $           | 6,220  |   |           | $      | 6,620 |   |   | $ | 6,220 |   |   | $ | 6,620 |   |
| Patents, net of accumulated amortization of $0.7 million on                                    |   |        |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|     June 30, 2012, and $0.6 million on December 31, 2011                   |   |        | 469    |   |           |   | 526 |   |   |   | 469 |   |   |   | 526 |   |
| Total amortizable intangible assets                                                            |   |        | 6,689  |   |           |   | 7,146 |   |   |   | 6,689 |   |   |   | 7,146 |   |
| Unamortizable intangible assets:                                                               |   |        |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Trademarks                                                                                     |   |        | 21,473 |   |           |   | 21,473 |   |   |   | 21,473 |   |   |   | 21,473 |   |
| Other assets:                                                                                  |   |        |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Financing costs, net of accumulated amortization of $5.7 million on                            |   |        |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    June 30, 2012, and $17.8 million on December 31, 2011, for                   |   |        |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Verso Paper, and net of accumulated amortization of $5.7 million             |   |        |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    on June 30, 2012, and $16.1 million on December 31, 2011,                    |   |        |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    for Verso Holdings                                                           |   |        | 36,517 |   |           |   | 24,483 |   |   |   | 36,517 |   |   |   | 24,093 |   |
| Deferred major repair                                                                          |   |        | 15,025 |   |           |   | 12,294 |   |   |   | 15,025 |   |   |   | 12,294 |   |
| Replacement parts, net                                                                         |   |        | 3,717  |   |           |   | 4,257 |   |   |   | 3,717 |   |   |   | 4,257 |   |
| Loan to affiliate                                                                              |   |        | -      |   |           |   | - |   |   |   | 23,305 |   |   |   | 23,305 |   |
| Restricted cash                                                                                |   |        | 4,120  |   |           |   | 3,560 |   |   |   | 4,120 |   |   |   | 3,560 |   |
| Other                                                                                          |   |        | 8,690  |   |           |   | 6,822 |   |   |   | 8,691 |   |   |   | 6,822 |   |
| Total other assets                                                                             |   |        | 68,069 |   |           |   | 51,416 |   |   |   | 91,375 |   |   |   | 74,331 |   |
| Intangibles and other assets                                                                   |   | $           | 96,231 |   |           | $      | 80,035 |   |   | $ | 119,537 |   |   | $ | 102,950 |   |
| Certain previously reported amounts have been reclassified to agree with current presentation. |   |        |   |   |           |   |   |   |   |   |   |   |   |

| (Dollars in thousands) |   |   |   |
|------------------------|--------|--------|--------|
| 2012                   |   | $      | 457    |   |
| 2013                   |   |   | 815    |   |
| 2014                   |   |   | 715    |   |
| 2015                   |   |   | 615    |   |
| 2016                   |   |   | 567    |   |

----

|                                                              |       |   | June 30, 2012 |   |   | December 31, 2011 |      |
|-------------------------------------------------------------------|------------|--------|---------------|--------|--------|-------------------|-----------|
|                                                              | Original   |   | Interest      |   |   |              |      |   | Fair |   |   |   |   |   | Fair |   |
| (Dollars in thousands)                                            | Maturity   |   | Rate          |   |   | Balance           |      |   | Value |   |   | Balance |   |   | Value |   |
| Verso Paper Holdings LLC                                          |       |   |          |   |   |              |      |   |   |   |   |   |   |   |   |   |
| Revolving Credit Facilities                                       | 5/4/2017   |   |          | 2.25   | %      |              | $         | 40,000 |   |   | $ | 40,000 |   |   | $ | - |   |   | $ | - |   |
| 11.5% Senior Secured Notes (1)                                    | 7/1/2014   |   |          | 11.50  | %      |              |      | - |   |   |   | - |   |   |   | 302,820 |   |   |   | 316,260 |   |
| 11.75% Senior Secured Notes (2)                                   | 1/15/2019  |   |          | 11.75  | %      |              |      | 341,298 |   |   |   | 355,350 |   |   |   | - |   |   |   | - |   |
| 11.75% Secured Notes                                              | 1/15/2019  |   |          | 11.75  | %      |              |      | 271,573 |   |   |   | 209,111 |   |   |   | - |   |   |   | - |   |
| 8.75% Second Priority Senior Secured Notes (3)                    | 2/1/2019   |   |          | 8.75   | %      |              |      | 394,802 |   |   |   | 158,515 |   |   |   | 394,736 |   |   |   | 257,063 |   |
| Second Priority Senior Secured Floating Rate Notes                | 8/1/2014   |   |          | 4.22   | %      |              |      | 13,310 |   |   |   | 9,650 |   |   |   | 180,216 |   |   |   | 112,635 |   |
| 11.38% Senior Subordinated Notes                                  | 8/1/2016   |   |          | 11.38  | %      |              |      | 142,500 |   |   |   | 71,606 |   |   |   | 300,000 |   |   |   | 122,550 |   |
| Chase NMTC Verso Investment Fund LLC                              |       |   |          |   |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan from Verso Paper Finance Holdings LLC                        | 12/29/2040 |   |          | 6.50   | %      |              |      | 23,305 |   |   |   | 23,305 |   |   |   | 23,305 |   |   |   | 23,305 |   |
| Total long-term debt for Verso Paper Holdings LLC                 |       |   |          |   |   |              | 1,226,788 |   |   |   | 867,537 |   |   |   | 1,201,077 |   |   |   | 831,813 |   |
| Verso Paper Finance Holdings LLC                                  |       |   |          |   |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior Unsecured Term Loan                                        | 2/1/2013   |   |          | 6.88   | %      |              |      | 87,662 |   |   |   | 84,156 |   |   |   | 84,687 |   |   |   | 46,578 |   |
| Loan from Verso Paper Holdings LLC                                | 12/29/2040 |   |          | 6.50   | %      |              |      | 23,305 |   |   |   | 23,305 |   |   |   | 23,305 |   |   |   | 23,305 |   |
| Less current maturities of long-term debt                         | 2/1/2013   |   |          | 6.88   | %      |              |      | (87,662 | ) |   |   | (84,156 | ) |   |   | - |   |   |   | - |   |
| Less loans from affiliates                                        | 12/29/2040 |   |          | 6.50   | %      |              |      | (46,610 | ) |   |   | (46,610 | ) |   |   | (46,610 | ) |   |   | (46,610 | ) |
| Total long-term debt for Verso Paper Corp.                        |       |   |          |   |   |              | $         | 1,203,483 |   |   | $ | 844,232 |   |   | $ | 1,262,459 |   |   | $ | 855,086 |   |
| (1) Par value of $315,000 on December 31, 2011.                   |       |   |          |   |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (2) Par value of $345,000 on June 30, 2012.                       |       |   |          |   |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (3) Par value of $396,000 on June 30, 2012 and December 31, 2011. |       |   |          |   |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                    |   | VERSO PAPER        |   |
|-------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                    |   | Three Months Ended |   |   | Six Months Ended |   |
|                                                                    |   | June 30,           |   |   | June 30, |   |
| (Dollars in thousands)                                                  |   | 2012               |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Interest expense                                                        |   | $                  | 33,050 |   |   | $ | 30,946 |   |   | $ | 64,523 |   |   | $ | 62,593 |   |
| Cash interest paid                                                      |   |               | 7,864  |   |   |   | 2,294 |   |   |   | 69,757 |   |   |   | 57,850 |   |
| Debt issuance cost amortization(1)                                      |   |               | 1,280  |   |   |   | 1,272 |   |   |   | 2,603 |   |   |   | 2,740 |   |
|                                                                    |   | VERSO HOLDINGS     |   |
|                                                                    |   | Three Months Ended |   |   | Six Months Ended |   |
|                                                                    |   | June 30,           |   |   | June 30, |   |
| (Dollars in thousands)                                                  |   |               | 2012   |   |   |   | 2011 |   |   |   | 2012 |   |   |   | 2011 |   |
| Interest expense                                                        |   | $                  | 31,904 |   |   | $ | 29,954 |   |   | $ | 62,266 |   |   | $ | 60,647 |   |
| Cash interest paid                                                      |   |               | 8,242  |   |   |   | 2,673 |   |   |   | 70,514 |   |   |   | 58,485 |   |
| Debt issuance cost amortization(1)                                      |   |               | 1,190  |   |   |   | 1,182 |   |   |   | 2,423 |   |   |   | 2,560 |   |
| (1) Amortization of debt issuance cost is included in interest expense. |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| 6.  | RETIREMENT PLANS |
|----------|------------------|

----

|                                     |   | Three Months Ended |   |   | Six Months Ended |   |
|------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                     |   | June 30,           |   |   | June 30,         |   |
| (Dollars in thousands)                   |   | 2012               |   |   | 2011             |   |   | 2012 |   |   | 2011 |   |
| Components of net periodic benefit cost: |   |               |   |   |             |   |   |   |   |   |   |   |
| Service cost                             |   | $                  | 1,770  |   |             | $      | 1,673 |   |   | $ | 3,541 |   |   | $ | 3,347 |   |
| Interest cost                            |   |               | 719    |   |             |   | 630 |   |   |   | 1,438 |   |   |   | 1,261 |   |
| Expected return on plan assets           |   |               | (698   | )      |             |   | (644 | ) |   |   | (1,396 | ) |   |   | (1,289 | ) |
| Amortization of prior service cost       |   |               | 196    |   |             |   | 294 |   |   |   | 392 |   |   |   | 588 |   |
| Amortization of actuarial loss           |   |               | 369    |   |             |   | 99 |   |   |   | 738 |   |   |   | 197 |   |
| Net periodic benefit cost                |   | $                  | 2,356  |   |             | $      | 2,052 |   |   | $ | 4,713 |   |   | $ | 4,104 |   |

----

| (Dollars in thousands)                                                                         |   | Total  |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|------------------------------------------------------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| June 30, 2012                                                                                  |   |   |   |   |    |   |   |    |   |   |    |   |
| Fixed income funds                                                                             |   | $      | 29,322 |   |    | $      | -      |    |   | $      | 29,322  |   |   | $ | - |   |
| Domestic equity funds - large cap                                                              |   |   | 9,191  |   |    |   | -      |    |   |   | 9,191   |   |   |   | - |   |
| Domestic equity funds - small cap                                                              |   |   | 1,751  |   |    |   | -      |    |   |   | 1,751   |   |   |   | - |   |
| International equity funds                                                                     |   |   | 1,313  |   |    |   | -      |    |   |   | 1,313   |   |   |   | - |   |
| Money market funds                                                                             |   |   | 1,313  |   |    |   | -      |    |   |   | 1,313   |   |   |   | - |   |
| Other funds                                                                                    |   |   | 875    |   |    |   | -      |    |   |   | 875     |   |   |   | - |   |
| Total assets at fair value                                                                     |   | $      | 43,765 |   |    | $      | -      |    |   | $      | 43,765  |   |   | $ | - |   |
| December 31, 2011                                                                              |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Fixed income funds                                                                             |   | $      | 25,274 |   |    | $      | -      |    |   | $      | 25,274  |   |   | $ | - |   |
| Domestic equity funds - large cap                                                              |   |   | 8,165  |   |    |   | -      |    |   |   | 8,165   |   |   |   | - |   |
| Domestic equity funds - small cap                                                              |   |   | 1,555  |   |    |   | -      |    |   |   | 1,555   |   |   |   | - |   |
| International equity funds                                                                     |   |   | 1,555  |   |    |   | -      |    |   |   | 1,555   |   |   |   | - |   |
| Money market funds                                                                             |   |   | 1,167  |   |    |   | -      |    |   |   | 1,167   |   |   |   | - |   |
| Other funds                                                                                    |   |   | 1,167  |   |    |   | -      |    |   |   | 1,167   |   |   |   | - |   |
| Total assets at fair value                                                                     |   | $      | 38,883 |   |    | $      | -      |    |   | $      | 38,883  |   |   | $ | - |   |
| Fair value is determined based on the net asset value of units held by the plan at period end. |   |   |   |   |    |   |   |    |   |   |    |   |   |

| 7.  | DERIVATIVE INSTRUMENTS AND HEDGES |
|----------|-----------------------------------|

----

|                                                       |   | June 30, 2012 |      |   | December 31, 2011 |   |
|------------------------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                                                       |   |          |      |   | Fair Value        |   |   |   |   |   | Fair Value |   |
|                                                       |   |          |      |   | Assets/           |   |   |   |   |   | Assets/ |   |
| (Dollars in thousands)                                     |   | MMBtu's       |      |   | (Liabilities)     |   |   | MMBtu's |   |   | (Liabilities) |   |
| Derivative contracts designated as hedging instruments     |   |          |      |   |              |   |   |   |   |   |   |   |
| Fixed price energy swaps                                   |   |          |      |   |              |   |   |   |   |   |   |   |
| Notional amount                                            |   |          | -         |   |              |   |   |   |   | 2,988,107 |   |   |   |   |
| Accrued liabilities                                        |   |          |      |   |              | $      | - |   |   |   |   |   |   | $ | (3,803 | ) |
| Other liabilities                                          |   |          |      |   |              |   | - |   |   |   |   |   |   |   | (877 | ) |
| Derivative contracts not designated as hedging instruments |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Fixed price energy swaps                                   |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Notional amount                                            |   |          | 5,716,097 |   |              |   |   |   |   |   | 4,891,187 |   |   |   |   |   |
| Prepaid expenses and other assets                          |   |          |      |   |              | $      | 26 |   |   |   |   |   |   | $ | - |   |
| Accrued liabilities                                        |   |          |      |   |              |   | (7,824 | ) |   |   |   |   |   |   | (6,244 | ) |
| Other liabilities                                          |   |          |      |   |              |   | (818 | ) |   |   |   |   |   |   | (1,419 | ) |

----

|                                                                                                                                       |   | Loss Recognized             |   |   | Loss Reclassified        |   |   | Gain (Loss) Recognized |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|--------------------------|--------|--------|------------------------|--------|
|                                                                                                                                       |   | in Accumulated OCI          |   |   | from Accumulated OCI (1) |   |   | on Derivatives (1)     |   |
|                                                                                                                                       |   | Three Months Ended June 30, |   |
| (Dollars in thousands)                                                                                                                     |   | 2012                        |   |   | 2011                     |   |   | 2012                   |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Derivative contracts designated as                                                                                                         |   |                        |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |
|    hedging instruments                                                                                                      |   |                        |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |
| Fixed price energy swaps                                                                                                                   |   | $                           | -      |   |                     | $      | (1,171 | )                      |   | $ | - |   |   | $ | (584 | ) |   | $ | - |   |   | $ | (108 | ) |
| Derivative contracts not designated                                                                                                        |   |                        |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    as hedging instruments                                                                                                   |   |                        |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed price energy swaps                                                                                                                   |   |                        |   |   |                     |   |   |                   |   | $ | (798 | ) |   | $ | - |   |   | $ | 1,242 |   |   | $ | - |   |
|                                                                                                                                       |   |                        |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                       |   | Loss Recognized             |   |   | Loss Reclassified        |   |   | Loss Recognized        |   |
|                                                                                                                                       |   | in Accumulated OCI          |   |   | from Accumulated OCI (1) |   |   | on Derivatives (1)     |   |
|                                                                                                                                       |   | Six Months Ended June 30,   |   |
| (Dollars in thousands)                                                                                                                     |   |                        | 2012   |   |                     |   | 2011   |                   |   |   | 2012 |   |   |   | 2011 |   |   |   | 2012 |   |   |   | 2011 |   |
| Derivative contracts designated as                                                                                                         |   |                        |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    hedging instruments                                                                                                      |   |                        |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed price energy swaps                                                                                                                   |   | $                           | (1,365 | )      |                     | $      | (1,337 | )                      |   | $ | (283 | ) |   | $ | (1,855 | ) |   | $ | (50 | ) |   | $ | (458 | ) |
| Derivative contracts not designated                                                                                                        |   |                        |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    as hedging instruments                                                                                                   |   |                        |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed price energy swaps                                                                                                                   |   |                        |   |   |                     |   |   |                   |   | $ | (5,155 | ) |   | $ | - |   |   | $ | (2,317 | ) |   | $ | - |   |
| Net losses of $0.9 million at June 30, 2012, are expected to be reclassified from Accumulated OCI into earnings within the next 12 months. |   |

| (1) | Loss reclassified from Accumulated OCI to earnings and gain (loss) recognized on derivatives is included in Cost of products sold. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| 8.  | FAIR VALUE OF FINANCIAL INSTRUMENTS |
|----------|-------------------------------------|

|   | ▪ Level 1:       | Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.                                                                                                                     |
|--------|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ▪ Level 2:       | Observable inputs other than those included in Level 1.  For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. |
|   | ▪ Level 3:  | Unobservable inputs reflecting management’s own assumption about the inputs used in pricing the asset or liability at the measurement date.                                                                           |

----

| (Dollars in thousands)                            |   | Total  |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|---------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| June 30, 2012                                     |   |   |   |   |    |   |   |    |   |   |    |   |
| Assets:                                           |   |   |   |   |    |   |   |    |   |   |    |   |
| Deferred compensation assets                      |   | $      | 2,719  |   |    | $      | 2,719  |    |   | $      | -       |   |   | $ | - |   |
| Commodity swaps                                   |   |   | 26     |   |    |   | -      |    |   |   | 26      |   |   |   | - |   |
| Liabilities:                                      |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Commodity swaps                                   |   | $      | 8,642  |   |    | $      | -      |    |   | $      | 8,642   |   |   | $ | - |   |
| Deferred compensation liabilities                 |   |   | 2,719  |   |    |   | 2,719  |    |   |   | -       |   |   |   | - |   |
| December 31, 2011                                 |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Assets:                                           |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Deferred compensation assets                      |   | $      | 2,672  |   |    | $      | 2,672  |    |   | $      | -       |   |   | $ | - |   |
| Regional Greenhouse Gas Initiative carbon credits |   |   | 425    |   |    |   | -      |    |   |   | 425     |   |   |   | - |   |
| Liabilities:                                      |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Commodity swaps                                   |   | $      | 12,343 |   |    | $      | -      |    |   | $      | 12,343  |   |   | $ | - |   |
| Deferred compensation liabilities                 |   |   | 2,672  |   |    |   | 2,672  |    |   |   | -       |   |   |   | - |   |
| Fair values are based on observable market data.  |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |

| 9.  | RELATED PARTY TRANSACTIONS |
|----------|----------------------------|

----

| (Dollars in thousands)                                    |   | Total Restructuring Charges |   |   | Recognized and/or paid as of June 30, 2012 |   |   | Remaining Costs to be Paid |   |
|-----------------------------------------------------------|--------|----------------------------------|--------|--------|-------------------------------------------------|--------|--------|----------------------------|--------|
| Severance and benefit costs                               |   | $                                | 15,146 |   |                                            | $      | 14,858 |                       |   | $ | 288 |   |
| Accelerated depreciation of property, plant and equipment |   |                             | 7,068  |   |                                            |   | 7,068  |                       |   |   | - |   |
| Write-off of related spare parts and inventory            |   |                             | 2,043  |   |                                            |   | 2,043  |                       |   |   | - |   |
| Other miscellaneous costs                                 |   |                             | 255    |   |                                            |   | 233    |                       |   |   | 22 |   |
| Total restructuring costs                                 |   | $                                | 24,512 |   |                                            | $      | 24,202 |                       |   | $ | 310 |   |

----

|                                    |   | Six Months    |    |
|-----------------------------------------|--------|---------------|---------|
|                                    |   | Ended         |    |
| (Dollars in thousands)                  |   | June 30, 2012 |    |
| Balance of reserve at December 31, 2011 |   | $             | 10,763  |   |
| Reduce reserve for spare parts utilized |   |          | (37     | ) |
| Purchase obligations payments           |   |          | (31     | ) |
| Severance and benefit payments          |   |          | (10,385 | ) |
| Balance of reserve at June 30, 2012     |   | $             | 310     |   |

|                                                 |   | Three Months  |   |   | Six Months |   |
|------------------------------------------------------|--------|---------------|--------|--------|------------|--------|
|                                                 |   | Ended         |   |   | Ended      |   |
| (Dollars in thousands)                               |   | June 30, 2012 |   |
| Severance and benefit costs                          |   | $             | (77    | )      |       | $      | 65 |   |
| Adjustment to valuation of spare parts and inventory |   |          | (30    | )      |       |   | (228 | ) |
| Other miscellaneous costs                            |   |          | 1      |   |       |   | 142 |   |
| Total restructuring costs                            |   | $             | (106   | )      |       | $      | (21 | ) |

----

|                                                                                                                           |   | VERSO PAPER |   |   | VERSO HOLDINGS |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|----------------|--------|
|                                                                                                                           |   | June 30,    |   |   | December 31,   |   |   | June 30, |   |   | December 31, |   |
| (Dollars in thousands)                                                                                                         |   | 2012        |   |   | 2011           |   |   | 2012 |   |   | 2011 |   |
| Current assets                                                                                                                 |   | $           | 56     |   |           | $      | 81 |   |   | $ | 56 |   |   | $ | 81 |   |
| Non-current assets                                                                                                             |   |        | 85     |   |           |   | 85 |   |   |   | 23,390 |   |   |   | 23,390 |   |
| Total assets                                                                                                                   |   | $           | 141    |   |           | $      | 166 |   |   | $ | 23,446 |   |   | $ | 23,471 |   |
| Current liabilities                                                                                                            |   |        | 55     |   |           |   | 79 |   |   |   | 181 |   |   |   | 205 |   |
| Long-term debt                                                                                                                 |   |        | -      |   |           |   | - |   |   |   | 23,305 |   |   |   | 23,305 |   |
| Other non-current liabilities                                                                                                  |   |        | 7,923  |   |           |   | 7,923 |   |   |   | 7,923 |   |   |   | 7,923 |   |
| Total liabilities                                                                                                              |   | $           | 7,978  |   |           | $      | 8,002 |   |   | $ | 31,409 |   |   | $ | 31,433 |   |
| Amounts presented in the condensed consolidated balance sheets and the table above are adjusted for intercompany eliminations. |   |

----

|                                       |   | VERSO PAPER CORP.  |    |
|--------------------------------------------|--------|--------------------|---------|
|                                       |   | Three Months Ended |    |   | Six Months Ended |   |
|                                       |   | June 30,           |    |   | June 30, |   |
| (Dollars in thousands)                     |   | 2012               |    |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Net Sales:                                 |   |               |    |   |   |   |   |   |   |   |   |   |
| Coated papers                              |   | $                  | 284,967 |   |   | $ | 320,652 |   |   | $ | 588,182 |   |   | $ | 672,342 |   |
| Hardwood market pulp                       |   |               | 36,263  |   |   |   | 36,206 |   |   |   | 69,133 |   |   |   | 71,943 |   |
| Other                                      |   |               | 44,032  |   |   |   | 41,921 |   |   |   | 83,242 |   |   |   | 71,086 |   |
| Total                                      |   | $                  | 365,262 |   |   | $ | 398,779 |   |   | $ | 740,557 |   |   | $ | 815,371 |   |
| Operating Income (Loss):                   |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Coated papers                              |   | $                  | (6,289  | ) |   | $ | 4,630 |   |   | $ | (15,151 | ) |   | $ | 12,803 |   |
| Hardwood market pulp                       |   |               | 3,291   |   |   |   | 7,051 |   |   |   | 4,252 |   |   |   | 16,315 |   |
| Other                                      |   |               | (6,526  | ) |   |   | (4,694 | ) |   |   | (10,936 | ) |   |   | (8,048 | ) |
| Total                                      |   | $                  | (9,524  | ) |   | $ | 6,987 |   |   | $ | (21,835 | ) |   | $ | 21,070 |   |
| Depreciation, Amortization, and Depletion: |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Coated papers                              |   | $                  | 24,180  |   |   | $ | 24,803 |   |   | $ | 48,800 |   |   | $ | 49,919 |   |
| Hardwood market pulp                       |   |               | 4,525   |   |   |   | 4,194 |   |   |   | 8,798 |   |   |   | 8,477 |   |
| Other                                      |   |               | 3,072   |   |   |   | 2,648 |   |   |   | 5,602 |   |   |   | 4,596 |   |
| Total                                      |   | $                  | 31,777  |   |   | $ | 31,645 |   |   | $ | 63,200 |   |   | $ | 62,992 |   |
| Capital Spending:                          |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Coated papers                              |   | $                  | 11,849  |   |   | $ | 18,396 |   |   | $ | 27,299 |   |   | $ | 27,561 |   |
| Hardwood market pulp                       |   |               | 1,293   |   |   |   | 8,237 |   |   |   | 2,212 |   |   |   | 12,098 |   |
| Other                                      |   |               | 940     |   |   |   | 131 |   |   |   | 1,561 |   |   |   | 347 |   |
| Total                                      |   | $                  | 14,082  |   |   | $ | 26,764 |   |   | $ | 31,072 |   |   | $ | 40,006 |   |

----

|                                       |   | VERSO PAPER HOLDINGS LLC |    |
|--------------------------------------------|--------|--------------------------|---------|
|                                       |   | Three Months Ended       |    |   | Six Months Ended |   |
|                                       |   | June 30,                 |    |   | June 30, |   |
| (Dollars in thousands)                     |   | 2012                     |    |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Net Sales:                                 |   |                     |    |   |   |   |   |   |   |   |   |   |
| Coated papers                              |   | $                        | 284,967 |   |   | $ | 320,652 |   |   | $ | 588,182 |   |   | $ | 672,342 |   |
| Hardwood market pulp                       |   |                     | 36,263  |   |   |   | 36,206 |   |   |   | 69,133 |   |   |   | 71,943 |   |
| Other                                      |   |                     | 44,032  |   |   |   | 41,921 |   |   |   | 83,242 |   |   |   | 71,086 |   |
| Total                                      |   | $                        | 365,262 |   |   | $ | 398,779 |   |   | $ | 740,557 |   |   | $ | 815,371 |   |
| Operating Income (Loss):                   |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Coated papers                              |   | $                        | (6,289  | ) |   | $ | 4,630 |   |   | $ | (15,100 | ) |   | $ | 12,854 |   |
| Hardwood market pulp                       |   |                     | 3,291   |   |   |   | 7,051 |   |   |   | 4,252 |   |   |   | 16,315 |   |
| Other                                      |   |                     | (6,526  | ) |   |   | (4,694 | ) |   |   | (10,936 | ) |   |   | (8,048 | ) |
| Total                                      |   | $                        | (9,524  | ) |   | $ | 6,987 |   |   | $ | (21,784 | ) |   | $ | 21,121 |   |
| Depreciation, Amortization, and Depletion: |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Coated papers                              |   | $                        | 24,180  |   |   | $ | 24,803 |   |   | $ | 48,800 |   |   | $ | 49,919 |   |
| Hardwood market pulp                       |   |                     | 4,525   |   |   |   | 4,194 |   |   |   | 8,798 |   |   |   | 8,477 |   |
| Other                                      |   |                     | 3,072   |   |   |   | 2,648 |   |   |   | 5,602 |   |   |   | 4,596 |   |
| Total                                      |   | $                        | 31,777  |   |   | $ | 31,645 |   |   | $ | 63,200 |   |   | $ | 62,992 |   |
| Capital Spending:                          |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Coated papers                              |   | $                        | 11,849  |   |   | $ | 18,396 |   |   | $ | 27,299 |   |   | $ | 27,561 |   |
| Hardwood market pulp                       |   |                     | 1,293   |   |   |   | 8,237 |   |   |   | 2,212 |   |   |   | 12,098 |   |
| Other                                      |   |                     | 940     |   |   |   | 131 |   |   |   | 1,561 |   |   |   | 347 |   |
| Total                                      |   | $                        | 14,082  |   |   | $ | 26,764 |   |   | $ | 31,072 |   |   | $ | 40,006 |   |

----

| Verso Paper Holdings LLC                                                                                                   |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed Consolidating Balance Sheet                                                                                      |   |
| June 30, 2012                                                                                                              |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   | Non- |   |   | Non- |   |   |   |   |   |   |   |
|                                                                                                                       |   | Parent |   |   | Subsidiary |   |   | Guarantor |   |   | Guarantor |   |   | Guarantor |   |   |   |   |   |   |   |
| (Dollars in thousands)                                                                                                     |   | Issuer |   |   | Issuer |   |   | Subsidiaries |   |   | Subsidiary |   |   | Affiliate |   |   | Eliminations |   |   | Consolidated |   |
| ASSETS                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                  |   | $ | - |   |   | $ | - |   |   | $ | 21,031 |   |   | $ | - |   |   | $ | 49 |   |   | $ | - |   |   | $ | 21,080 |   |
| Accounts receivable, net                                                                                                   |   |   | - |   |   |   | - |   |   |   | 112,233 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 112,233 |   |
| Inventories                                                                                                                |   |   | - |   |   |   | - |   |   |   | 170,185 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 170,185 |   |
| Prepaid expenses and other assets                                                                                          |   |   | - |   |   |   | - |   |   |   | 3,306 |   |   |   | - |   |   |   | 7 |   |   |   | - |   |   |   | 3,313 |   |
| Current assets                                                                                                             |   |   | - |   |   |   | - |   |   |   | 306,755 |   |   |   | - |   |   |   | 56 |   |   |   | - |   |   |   | 306,811 |   |
| Property, plant, and equipment, net                                                                                        |   |   | - |   |   |   | - |   |   |   | 877,128 |   |   |   | 20,784 |   |   |   | - |   |   |   | (288 | ) |   |   | 897,624 |   |
| Intercompany/affiliate receivable                                                                                          |   |   | 1,276,261 |   |   |   | - |   |   |   | - |   |   |   | 9,061 |   |   |   | 31,153 |   |   |   | (1,316,475 | ) |   |   | - |   |
| Investment in subsidiaries                                                                                                 |   |   | (181,701 | ) |   |   | - |   |   |   | (217 | ) |   |   | - |   |   |   | - |   |   |   | 181,918 |   |   |   | - |   |
| Other non-current assets(1)                                                                                                |   |   | - |   |   |   | - |   |   |   | 131,293 |   |   |   | 1,091 |   |   |   | 3 |   |   |   | 82 |   |   |   | 132,469 |   |
| Total assets                                                                                                               |   | $ | 1,094,560 |   |   | $ | - |   |   | $ | 1,314,959 |   |   | $ | 30,936 |   |   | $ | 31,212 |   |   | $ | (1,134,763 | ) |   | $ | 1,336,904 |   |
| LIABILITIES AND MEMBER'S EQUITY                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                                           |   | $ | - |   |   | $ | - |   |   | $ | 107,776 |   |   | $ | 7 |   |   | $ | 55 |   |   | $ | (7 | ) |   | $ | 107,831 |   |
| Accrued liabilities                                                                                                        |   |   | 37,064 |   |   |   | - |   |   |   | 58,624 |   |   |   | - |   |   |   | 126 |   |   |   | - |   |   |   | 95,814 |   |
| Current liabilities                                                                                                        |   |   | 37,064 |   |   |   | - |   |   |   | 166,400 |   |   |   | 7 |   |   |   | 181 |   |   |   | (7 | ) |   |   | 203,645 |   |
| Intercompany/affiliate payable                                                                                             |   |   | - |   |   |   | - |   |   |   | 1,285,322 |   |   |   | 31,146 |   |   |   | - |   |   |   | (1,316,468 | ) |   |   | - |   |
| Long-term debt(2)                                                                                                          |   |   | 1,203,483 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 23,305 |   |   |   | - |   |   |   | 1,226,788 |   |
| Other long-term liabilities                                                                                                |   |   | - |   |   |   | - |   |   |   | 44,535 |   |   |   | - |   |   |   | 7,923 |   |   |   | - |   |   |   | 52,458 |   |
| Member's (deficit) equity                                                                                                  |   |   | (145,987 | ) |   |   | - |   |   |   | (181,298 | ) |   |   | (217 | ) |   |   | (197 | ) |   |   | 181,712 |   |   |   | (145,987 | ) |
| Total liabilities and equity                                                                                               |   | $ | 1,094,560 |   |   | $ | - |   |   | $ | 1,314,959 |   |   | $ | 30,936 |   |   | $ | 31,212 |   |   | $ | (1,134,763 | ) |   | $ | 1,336,904 |   |
| (1) Non-current assets of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. |   |
| (2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance.                                                 |   |

----

| Verso Paper Holdings LLC                                                                                                         |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed Consolidating Balance Sheet                                                                                            |   |
| December 31, 2011                                                                                                                |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |   |   |   |   | Non- |   |   | Non- |   |   |   |   |   |   |   |
|                                                                                                                             |   | Parent |   |   | Subsidiary |   |   | Guarantor |   |   | Guarantor |   |   | Guarantor |   |   |   |   |   |   |   |
| (Dollars in thousands)                                                                                                           |   | Issuer |   |   | Issuer |   |   | Subsidiaries |   |   | Subsidiary |   |   | Affiliate |   |   | Eliminations |   |   | Consolidated |   |
| ASSETS                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                        |   | $ | - |   |   | $ | - |   |   | $ | 94,722 |   |   | $ | - |   |   | $ | 73 |   |   | $ | - |   |   | $ | 94,795 |   |
| Accounts receivable, net                                                                                                         |   |   | - |   |   |   | - |   |   |   | 128,213 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 128,213 |   |
| Inventories                                                                                                                      |   |   | - |   |   |   | - |   |   |   | 166,876 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 166,876 |   |
| Prepaid expenses and other assets                                                                                                |   |   | - |   |   |   | - |   |   |   | 3,230 |   |   |   | - |   |   |   | 8 |   |   |   | - |   |   |   | 3,238 |   |
| Current assets                                                                                                                   |   |   | - |   |   |   | - |   |   |   | 393,041 |   |   |   | - |   |   |   | 81 |   |   |   | - |   |   |   | 393,122 |   |
| Property, plant, and equipment, net                                                                                              |   |   | - |   |   |   | - |   |   |   | 904,901 |   |   |   | 30,086 |   |   |   | - |   |   |   | (288 | ) |   |   | 934,699 |   |
| Intercompany/affiliate receivable                                                                                                |   |   | 1,249,306 |   |   |   | - |   |   |   | - |   |   |   | 340 |   |   |   | 31,153 |   |   |   | (1,280,799 | ) |   |   | - |   |
| Investment in subsidiaries                                                                                                       |   |   | (84,459 | ) |   |   | - |   |   |   | 356 |   |   |   | - |   |   |   | - |   |   |   | 84,103 |   |   |   | - |   |
| Other non-current assets(1)                                                                                                      |   |   | - |   |   |   | - |   |   |   | 115,461 |   |   |   | 1,076 |   |   |   | 30 |   |   |   | 54 |   |   |   | 116,621 |   |
| Total assets                                                                                                                     |   | $ | 1,164,847 |   |   | $ | - |   |   | $ | 1,413,759 |   |   | $ | 31,502 |   |   | $ | 31,264 |   |   | $ | (1,196,930 | ) |   | $ | 1,444,442 |   |
| LIABILITIES AND MEMBER'S EQUITY                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                                                 |   | $ | - |   |   | $ | - |   |   | $ | 110,517 |   |   | $ | - |   |   | $ | 79 |   |   | $ | (7 | ) |   | $ | 110,589 |   |
| Accrued liabilities                                                                                                              |   |   | 48,259 |   |   |   | - |   |   |   | 91,297 |   |   |   | - |   |   |   | 126 |   |   |   | - |   |   |   | 139,682 |   |
| Current liabilities                                                                                                              |   |   | 48,259 |   |   |   | - |   |   |   | 201,814 |   |   |   | - |   |   |   | 205 |   |   |   | (7 | ) |   |   | 250,271 |   |
| Intercompany/affiliate payable                                                                                                   |   |   | - |   |   |   | - |   |   |   | 1,249,646 |   |   |   | 31,146 |   |   |   | - |   |   |   | (1,280,792 | ) |   |   | - |   |
| Long-term debt(2)                                                                                                                |   |   | 1,177,772 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 23,305 |   |   |   | - |   |   |   | 1,201,077 |   |
| Other long-term liabilities                                                                                                      |   |   | - |   |   |   | - |   |   |   | 46,355 |   |   |   | - |   |   |   | 7,923 |   |   |   | - |   |   |   | 54,278 |   |
| Member's (deficit) equity                                                                                                        |   |   | (61,184 | ) |   |   | - |   |   |   | (84,056 | ) |   |   | 356 |   |   |   | (169 | ) |   |   | 83,869 |   |   |   | (61,184 | ) |
| Total liabilities and equity                                                                                                     |   | $ | 1,164,847 |   |   | $ | - |   |   | $ | 1,413,759 |   |   | $ | 31,502 |   |   | $ | 31,264 |   |   | $ | (1,196,930 | ) |   | $ | 1,444,442 |   |
| (1) Other non-current assets of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. |   |
| (2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance.                                                       |   |

| Verso Paper Holdings LLC                                                  |   |
|---------------------------------------------------------------------------|--------|
| Condensed Consolidating Statements of Operations and Comprehensive Income |   |
| Three Months Ended June 30, 2012                                          |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   | Non- |   |   | Non- |   |   |   |   |   |   |   |
|                                                                      |   | Parent |   |   | Subsidiary |   |   | Guarantor |   |   | Guarantor |   |   | Guarantor |   |   |   |   |   |   |   |
| (Dollars in thousands)                                                    |   | Issuer |   |   | Issuer |   |   | Subsidiaries |   |   | Subsidiary |   |   | Affiliate |   |   | Eliminations |   |   | Consolidated |   |
| Net sales                                                                 |   | $ | - |   |   | $ | - |   |   | $ | 365,262 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 365,262 |   |
| Cost of products sold (exclusive of                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   depreciation, amortization, and depletion)                    |   |   | - |   |   |   | - |   |   |   | 323,185 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 323,185 |   |
| Depreciation, amortization, and depletion                                 |   |   | - |   |   |   | - |   |   |   | 31,509 |   |   |   | 268 |   |   |   | 13 |   |   |   | (13 | ) |   |   | 31,777 |   |
| Selling, general, and administrative expenses                             |   |   | - |   |   |   | - |   |   |   | 20,354 |   |   |   | (433 | ) |   |   | 9 |   |   |   | - |   |   |   | 19,930 |   |
| Restructuring and other charges                                           |   |   | - |   |   |   | - |   |   |   | (106 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (106 | ) |
| Interest income                                                           |   |   | (32,698 | ) |   |   | - |   |   |   | (382 | ) |   |   | - |   |   |   | (386 | ) |   |   | 33,084 |   |   |   | (382 | ) |
| Interest expense                                                          |   |   | 32,698 |   |   |   | - |   |   |   | 31,608 |   |   |   | 393 |   |   |   | 378 |   |   |   | (33,084 | ) |   |   | 31,993 |   |
| Other income, net                                                         |   |   | (21,727 | ) |   |   | - |   |   |   | (350 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (22,077 | ) |
| Equity in net loss of subsidiaries                                        |   |   | (40,785 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 40,785 |   |   |   | - |   |
| Net loss                                                                  |   | $ | (19,058 | ) |   | $ | - |   |   | $ | (40,556 | ) |   | $ | (228 | ) |   | $ | (14 | ) |   | $ | 40,798 |   |   | $ | (19,058 | ) |
| Other comprehensive income                                                |   |   | 1,079 |   |   |   | - |   |   |   | 1,079 |   |   |   | - |   |   |   | - |   |   |   | (1,079 | ) |   |   | 1,079 |   |
| Comprehensive loss                                                        |   | $ | (17,979 | ) |   | $ | - |   |   | $ | (39,477 | ) |   | $ | (228 | ) |   | $ | (14 | ) |   | $ | 39,719 |   |   | $ | (17,979 | ) |

----

| Verso Paper Holdings LLC                                                  |   |
|---------------------------------------------------------------------------|--------|
| Condensed Consolidating Statements of Operations and Comprehensive Income |   |
| Six Months Ended June 30, 2012                                            |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   | Non- |   |   | Non- |   |   |   |   |   |   |   |
|                                                                      |   | Parent |   |   | Subsidiary |   |   | Guarantor |   |   | Guarantor |   |   | Guarantor |   |   |   |   |   |   |   |
| (Dollars in thousands)                                                    |   | Issuer |   |   | Issuer |   |   | Subsidiaries |   |   | Subsidiary |   |   | Affiliate |   |   | Eliminations |   |   | Consolidated |   |
| Net sales                                                                 |   | $ | - |   |   | $ | - |   |   | $ | 740,557 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 740,557 |   |
| Cost of products sold (exclusive of                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   depreciation, amortization, and depletion)                    |   |   | - |   |   |   | - |   |   |   | 660,465 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 660,465 |   |
| Depreciation, amortization, and depletion                                 |   |   | - |   |   |   | - |   |   |   | 62,573 |   |   |   | 627 |   |   |   | 27 |   |   |   | (27 | ) |   |   | 63,200 |   |
| Selling, general, and administrative expenses                             |   |   | - |   |   |   | - |   |   |   | 39,521 |   |   |   | (841 | ) |   |   | 17 |   |   |   | - |   |   |   | 38,697 |   |
| Restructuring and other charges                                           |   |   | - |   |   |   | - |   |   |   | (21 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (21 | ) |
| Interest income                                                           |   |   | (63,886 | ) |   |   | - |   |   |   | (762 | ) |   |   | - |   |   |   | (773 | ) |   |   | 64,659 |   |   |   | (762 | ) |
| Interest expense                                                          |   |   | 63,886 |   |   |   | - |   |   |   | 62,139 |   |   |   | 787 |   |   |   | 757 |   |   |   | (64,659 | ) |   |   | 62,910 |   |
| Other loss (income), net                                                  |   |   | 8,244 |   |   |   | - |   |   |   | (751 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,493 |   |
| Equity in net loss of subsidiaries                                        |   |   | (83,181 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 83,181 |   |   |   | - |   |
| Net loss                                                                  |   | $ | (91,425 | ) |   | $ | - |   |   | $ | (82,607 | ) |   | $ | (573 | ) |   | $ | (28 | ) |   | $ | 83,208 |   |   | $ | (91,425 | ) |
| Other comprehensive income                                                |   |   | 5,038 |   |   |   | - |   |   |   | 5,038 |   |   |   | - |   |   |   | - |   |   |   | (5,038 | ) |   |   | 5,038 |   |
| Comprehensive loss                                                        |   | $ | (86,387 | ) |   | $ | - |   |   | $ | (77,569 | ) |   | $ | (573 | ) |   | $ | (28 | ) |   | $ | 78,170 |   |   | $ | (86,387 | ) |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Verso Paper Holdings LLC                                                  |   |
| Condensed Consolidating Statements of Operations and Comprehensive Income |   |
| Three Months Ended June 30, 2011                                          |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   | Non- |   |   | Non- |   |   |   |   |   |   |   |   |   |
|                                                                      |   | Parent |   |   | Subsidiary |   |   | Guarantor |   |   | Guarantor |   |   | Guarantor |   |   |   |   |   |   |   |   |   |
| (Dollars in thousands)                                                    |   | Issuer |   |   | Issuer |   |   | Subsidiaries |   |   | Subsidiary |   |   | Affiliate |   |   | Eliminations |   |   | Consolidated |   |
| Net sales                                                                 |   | $ | - |   |   | $ | - |   |   | $ | 398,779 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 398,779 |   |
| Cost of products sold (exclusive of                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   depreciation, amortization, and depletion)                    |   |   | - |   |   |   | - |   |   |   | 338,480 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 338,480 |   |
| Depreciation, amortization, and depletion                                 |   |   | - |   |   |   | - |   |   |   | 31,639 |   |   |   | 6 |   |   |   | 13 |   |   |   | (13 | ) |   |   | 31,645 |   |
| Selling, general, and administrative expenses                             |   |   | - |   |   |   | - |   |   |   | 21,696 |   |   |   | (37 | ) |   |   | 8 |   |   |   | - |   |   |   | 21,667 |   |
| Interest income                                                           |   |   | (30,736 | ) |   |   | - |   |   |   | (386 | ) |   |   | (26 | ) |   |   | (386 | ) |   |   | 31,122 |   |   |   | (412 | ) |
| Interest expense                                                          |   |   | 30,736 |   |   |   | - |   |   |   | 30,352 |   |   |   | 126 |   |   |   | 379 |   |   |   | (31,122 | ) |   |   | 30,471 |   |
| Other income, net                                                         |   |   | (1 | ) |   |   | - |   |   |   | (235 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (236 | ) |
| Equity in net loss of subsidiaries                                        |   |   | (22,837 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,837 |   |   |   | - |   |
| Net loss                                                                  |   | $ | (22,836 | ) |   | $ | - |   |   | $ | (22,767 | ) |   | $ | (69 | ) |   | $ | (14 | ) |   | $ | 22,850 |   |   | $ | (22,836 | ) |
| Other comprehensive loss                                                  |   |   | (199 | ) |   |   | - |   |   |   | (199 | ) |   |   | - |   |   |   | - |   |   |   | 199 |   |   |   | (199 | ) |
| Comprehensive loss                                                        |   | $ | (23,035 | ) |   | $ | - |   |   | $ | (22,966 | ) |   | $ | (69 | ) |   | $ | (14 | ) |   | $ | 23,049 |   |   | $ | (23,035 | ) |

|                                                                      |   |
|---------------------------------------------------------------------------|--------|
| Verso Paper Holdings LLC                                                  |   |
| Condensed Consolidating Statements of Operations and Comprehensive Income |
| Six Months Ended June 30, 2011                                            |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   | Non- |   |   | Non- |   |   |   |   |   |   |   |
|                                                                      |   | Parent |   |   | Subsidiary |   |   | Guarantor |   |   | Guarantor |   |   | Guarantor |   |   |   |   |   |   |   |
| (Dollars in thousands)                                                    |   | Issuer |   |   | Issuer |   |   | Subsidiaries |   |   | Subsidiary |   |   | Affiliate |   |   | Eliminations |   |   | Consolidated |   |
| Net sales                                                                 |   | $ | - |   |   | $ | - |   |   | $ | 815,371 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 815,371 |   |
| Cost of products sold (exclusive of                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   depreciation, amortization, and depletion)                    |   |   | - |   |   |   | - |   |   |   | 691,008 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 691,008 |   |
| Depreciation, amortization, and depletion                                 |   |   | - |   |   |   | - |   |   |   | 62,980 |   |   |   | 12 |   |   |   | 27 |   |   |   | (27 | ) |   |   | 62,992 |   |
| Selling, general, and administrative expenses                             |   |   | - |   |   |   | - |   |   |   | 40,202 |   |   |   | (61 | ) |   |   | 109 |   |   |   | - |   |   |   | 40,250 |   |
| Interest income                                                           |   |   | (62,517 | ) |   |   | - |   |   |   | (782 | ) |   |   | (42 | ) |   |   | (773 | ) |   |   | 63,290 |   |   |   | (824 | ) |
| Interest expense                                                          |   |   | 62,517 |   |   |   | - |   |   |   | 61,310 |   |   |   | 520 |   |   |   | 758 |   |   |   | (63,290 | ) |   |   | 61,815 |   |
| Other loss (income), net                                                  |   |   | 26,091 |   |   |   | - |   |   |   | (151 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 25,940 |   |
| Equity in net loss of subsidiaries                                        |   |   | (39,719 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 39,719 |   |   |   | - |   |
| Net loss                                                                  |   | $ | (65,810 | ) |   | $ | - |   |   | $ | (39,196 | ) |   | $ | (429 | ) |   | $ | (121 | ) |   | $ | 39,746 |   |   | $ | (65,810 | ) |
| Other comprehensive income                                                |   |   | 1,306 |   |   |   | - |   |   |   | 1,306 |   |   |   | - |   |   |   | - |   |   |   | (1,306 | ) |   |   | 1,306 |   |
| Comprehensive loss                                                        |   | $ | (64,504 | ) |   | $ | - |   |   | $ | (37,890 | ) |   | $ | (429 | ) |   | $ | (121 | ) |   | $ | 38,440 |   |   | $ | (64,504 | ) |

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| Verso Paper Holdings LLC                         |   |
|--------------------------------------------------|--------|
| Condensed Consolidating Statements of Cash Flows |   |
| Six Months Ended June 30, 2012                   |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   |   |   |   | Non- |   |   | Non- |   |   |   |   |   |   |   |
|                                             |   | Parent |   |   | Subsidiary |   |   | Guarantor |   |   | Guarantor |   |   | Guarantor |   |   |   |   |   |   |   |
| (Dollars in thousands)                           |   | Issuer |   |   | Issuer |   |   | Subsidiaries |   |   | Subsidiary |   |   | Affiliate |   |   | Eliminations |   |   | Consolidated |   |
| Net cash used in operating activities            |   | $ | - |   |   | $ | - |   |   | $ | (37,783 | ) |   | $ | (8,645 | ) |   | $ | (24 | ) |   | $ | - |   |   | $ | (46,452 | ) |
| Cash flows from investing activities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from sale of fixed assets               |   |   | - |   |   |   | - |   |   |   | 1,452 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,452 |   |
| Transfers to (from) restricted cash              |   |   | - |   |   |   | - |   |   |   | (529 | ) |   |   | (30 | ) |   |   | - |   |   |   | - |   |   |   | (559 | ) |
| Return of investment in subsidiaries             |   |   | 63 |   |   |   | - |   |   |   | (63 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Capital expenditures                             |   |   | - |   |   |   | - |   |   |   | (39,747 | ) |   |   | 8,675 |   |   |   | - |   |   |   | - |   |   |   | (31,072 | ) |
| Net cash used in investing activities            |   |   | 63 |   |   |   | - |   |   |   | (38,887 | ) |   |   | 8,645 |   |   |   | - |   |   |   | - |   |   |   | (30,179 | ) |
| Cash flows from financing activities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings on revolving credit facilities        |   |   | 90,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 90,000 |   |
| Payments on revolving credit facilities          |   |   | (50,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (50,000 | ) |
| Proceeds from long-term debt                     |   |   | 341,191 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 341,191 |   |
| Repayments of long-term debt                     |   |   | (354,984 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (354,984 | ) |
| Debt issuance costs                              |   |   | (23,228 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (23,228 | ) |
| Cash distributions                               |   |   | (63 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (63 | ) |
| Repayment of advances to subsidiaries            |   |   | 354,984 |   |   |   | - |   |   |   | (354,984 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Advances to subsidiaries                         |   |   | (357,963 | ) |   |   | - |   |   |   | 357,963 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net cash provided by financing activities        |   |   | (63 | ) |   |   | - |   |   |   | 2,979 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,916 |   |
| Change in cash and cash equivalents              |   |   | - |   |   |   | - |   |   |   | (73,691 | ) |   |   | - |   |   |   | (24 | ) |   |   | - |   |   |   | (73,715 | ) |
| Cash and cash equivalents at beginning of period |   |   | - |   |   |   | - |   |   |   | 94,722 |   |   |   | - |   |   |   | 73 |   |   |   | - |   |   |   | 94,795 |   |
| Cash and cash equivalents at end of period       |   | $ | - |   |   | $ | - |   |   | $ | 21,031 |   |   | $ | - |   |   | $ | 49 |   |   | $ | - |   |   | $ | 21,080 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Verso Paper Holdings LLC                         |   |
| Condensed Consolidating Statements of Cash Flows |   |
| Six Months Ended June 30, 2011                   |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |   | Non- |   |   | Non- |   |   |   |   |   |   |   |   |   |
|                                             |   | Parent |   |   | Subsidiary |   |   | Guarantor |   |   | Guarantor |   |   | Guarantor |   |   |   |   |   |   |   |   |   |
| (Dollars in thousands)                           |   | Issuer |   |   | Issuer |   |   | Subsidiaries |   |   | Subsidiary |   |   | Affiliate |   |   | Eliminations |   |   | Consolidated |   |
| Net cash used in operating activities            |   | $ | - |   |   | $ | - |   |   | $ | (58,815 | ) |   | $ | (1,345 | ) |   | $ | 20 |   |   | $ | - |   |   | $ | (60,140 | ) |
| Cash flows from investing activities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from sale of fixed assets               |   |   | - |   |   |   | - |   |   |   | 182 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 182 |   |
| Transfers to (from) restricted cash              |   |   | - |   |   |   | - |   |   |   | (310 | ) |   |   | 9,934 |   |   |   | - |   |   |   | - |   |   |   | 9,624 |   |
| Capital expenditures                             |   |   | - |   |   |   | - |   |   |   | (31,654 | ) |   |   | (8,352 | ) |   |   | - |   |   |   | - |   |   |   | (40,006 | ) |
| Net cash used in investing activities            |   |   | - |   |   |   | - |   |   |   | (31,782 | ) |   |   | 1,582 |   |   |   | - |   |   |   | - |   |   |   | (30,200 | ) |
| Cash flows from financing activities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from long-term debt                     |   |   | 394,618 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 394,618 |   |
| Repayments of long-term debt                     |   |   | (389,998 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (389,998 | ) |
| Debt issuance costs                              |   |   | (10,582 | ) |   |   | - |   |   |   | 152 |   |   |   | (237 | ) |   |   | - |   |   |   | - |   |   |   | (10,667 | ) |
| Repayment of advances to subsidiaries            |   |   | 389,998 |   |   |   | - |   |   |   | (389,998 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Advances to subsidiaries                         |   |   | (384,036 | ) |   |   | - |   |   |   | 384,036 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net cash used in financing activities            |   |   | - |   |   |   | - |   |   |   | (5,810 | ) |   |   | (237 | ) |   |   | - |   |   |   | - |   |   |   | (6,047 | ) |
| Change in cash and cash equivalents              |   |   | - |   |   |   | - |   |   |   | (96,407 | ) |   |   | - |   |   |   | 20 |   |   |   | - |   |   |   | (96,387 | ) |
| Cash and cash equivalents at beginning of period |   |   | - |   |   |   | - |   |   |   | 152,702 |   |   |   | - |   |   |   | 4 |   |   |   | - |   |   |   | 152,706 |   |
| Cash and cash equivalents at end of period       |   | $ | - |   |   | $ | - |   |   | $ | 56,295 |   |   | $ | - |   |   | $ | 24 |   |   | $ | - |   |   | $ | 56,319 |   |

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| VERSO PAPER CORP.                                                 |   |
|-------------------------------------------------------------------|--------|
|                                                              |   |   | Three Months Ended |   |   | Six Months Ended |   |
|                                                              |   |   | June 30, |   |   | June 30, |   |
| (Dollars in thousands)                                            |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Net sales                                                         |   | $ | 365,262 |   |   | $ | 398,779 |   |   | $ | 740,557 |   |   | $ | 815,371 |   |
| Costs and expenses:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of products sold - (exclusive of depreciation, amortization, |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     and depletion)                                 |   |   | 323,185 |   |   |   | 338,480 |   |   |   | 660,465 |   |   |   | 691,008 |   |
| Depreciation, amortization, and depletion                         |   |   | 31,777 |   |   |   | 31,645 |   |   |   | 63,200 |   |   |   | 62,992 |   |
| Selling, general, and administrative expenses                     |   |   | 19,930 |   |   |   | 21,667 |   |   |   | 38,748 |   |   |   | 40,301 |   |
| Restructuring and other charges                                   |   |   |   | (106 | ) |   |   | - |   |   |   | (21 | ) |   |   | - |   |
| Total operating expenses                                          |   |   |   | 374,786 |   |   |   | 391,792 |   |   |   | 762,392 |   |   |   | 794,301 |   |
| Operating income (loss)                                           |   |   | (9,524 | ) |   |   | 6,987 |   |   |   | (21,835 | ) |   |   | 21,070 |   |
| Interest income                                                   |   |   | (2 | ) |   |   | (33 | ) |   |   | (4 | ) |   |   | (67 | ) |
| Interest expense                                                  |   |   | 33,228 |   |   |   | 31,552 |   |   |   | 65,347 |   |   |   | 63,941 |   |
| Other loss (income), net                                          |   |   |   | (22,077 | ) |   |   | (236 | ) |   |   | 7,493 |   |   |   | 26,091 |   |
| Loss before income taxes                                          |   |   | (20,673 | ) |   |   | (24,296 | ) |   |   | (94,671 | ) |   |   | (68,895 | ) |
| Income tax expense (benefit)                                      |   |   | 9 |   |   |   | - |   |   |   | (60 | ) |   |   | (2 | ) |
| Net loss                                                          |   | $ | (20,682 | ) |   | $ | (24,296 | ) |   | $ | (94,611 | ) |   | $ | (68,893 | ) |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| VERSO PAPER HOLDINGS LLC                                          |   |
|                                                              |   |   | Three Months Ended |   |   | Six Months Ended |   |
|                                                              |   |   | June 30, |   |   | June 30, |   |
| (Dollars in thousands)                                            |   |   | 2012 |   |   |   | 2011 |   |   |   | 2012 |   |   |   | 2011 |   |
| Net sales                                                         |   | $ | 365,262 |   |   | $ | 398,779 |   |   | $ | 740,557 |   |   | $ | 815,371 |   |
| Costs and expenses:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of products sold - (exclusive of depreciation, amortization, |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     and depletion)                                      |   |   | 323,185 |   |   |   | 338,480 |   |   |   | 660,465 |   |   |   | 691,008 |   |
| Depreciation, amortization, and depletion                         |   |   | 31,777 |   |   |   | 31,645 |   |   |   | 63,200 |   |   |   | 62,992 |   |
| Selling, general, and administrative expenses                     |   |   | 19,930 |   |   |   | 21,667 |   |   |   | 38,697 |   |   |   | 40,250 |   |
| Restructuring and other charges                                   |   |   | (106 | ) |   |   | - |   |   |   | (21 | ) |   |   | - |   |
| Total operating expenses                                          |   |   | 374,786 |   |   |   | 391,792 |   |   |   | 762,341 |   |   |   | 794,250 |   |
| Operating income (loss)                                           |   |   | (9,524 | ) |   |   | 6,987 |   |   |   | (21,784 | ) |   |   | 21,121 |   |
| Interest income                                                   |   |   | (382 | ) |   |   | (412 | ) |   |   | (762 | ) |   |   | (824 | ) |
| Interest expense                                                  |   |   | 31,993 |   |   |   | 30,471 |   |   |   | 62,910 |   |   |   | 61,815 |   |
| Other loss (income), net                                          |   |   | (22,077 | ) |   |   | (236 | ) |   |   | 7,493 |   |   |   | 25,940 |   |
| Net loss                                                          |   | $ | (19,058 | ) |   | $ | (22,836 | ) |   | $ | (91,425 | ) |   | $ | (65,810 | ) |

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|                                                              |   |   |        |   |   |         |   |   |     |   |   |     |   |
|-------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------------|--------|--------|----------|--------|--------|----------|--------|
|                                                              |   |   | Verso Paper |   |
|                                                              |   |   | Six         |   |   |         |   |   | Six      |   |   | Twelve   |   |
|                                                              |   |   | Months      |   |   | Year         |   |   | Months   |   |   | Months   |   |
|                                                              |   |   | Ended       |   |   | Ended        |   |   | Ended    |   |   | Ended    |   |
|                                                              |   |   | June 30,    |   |   | December 31, |   |   | June 30, |   |   | June 30, |   |
| (Dollars in millions)                                             |   | 2011   |        |   | 2011   |         |   | 2012   |     |   | 2012   |     |
| Cash flows from operating activities                              |   | $      | (60.2       | )      |   | $            | 14.5   |   |     | $      | (46.5  | )        |   | $ | 28.2 |   |
| Income tax expense                                                |   |   | -           |   |   |         | 0.2    |   |     |   | (0.1   | )        |   |   | 0.1 |   |
| Amortization of debt issuance costs                               |   |   | (2.7        | )      |   |         | (5.4   | )      |     |   | (2.6   | )        |   |   | (5.3 | ) |
| Accretion of discount on long-term debt                           |   |   | (2.0        | )      |   |         | (4.1   | )      |     |   | (1.2   | )        |   |   | (3.3 | ) |
| Loss on early extinguishment of debt, net                         |   |   | (26.1       | )      |   |         | (26.1  | )      |     |   | (8.2   | )        |   |   | (8.2 | ) |
| Goodwill impairment                                               |   |   | -           |   |   |         | (18.7  | )      |     |   | -      |     |   |   | (18.7 | ) |
| Equity award expense                                              |   |   | (1.3        | )      |   |         | (2.4   | )      |     |   | (1.6   | )        |   |   | (2.7 | ) |
| Interest income                                                   |   |   | (0.1        | )      |   |         | (0.1   | )      |     |   | -      |     |   |   | - |   |
| Interest expense                                                  |   |   | 64.0        |   |   |         | 126.6  |   |     |   | 65.4   |     |   |   | 128.0 |   |
| Other, net                                                        |   |   | 0.2         |   |   |         | (1.3   | )      |     |   | (0.5   | )        |   |   | (2.0 | ) |
| Changes in assets and liabilities, net                            |   |   | 86.2        |   |   |         | 31.7   |   |     |   | 29.2   |     |   |   | (25.3 | ) |
| EBITDA                                                            |   |   | 58.0        |   |   |         | 114.9  |   |     |   | 33.9   |     |   |   | 90.8 |   |
| Loss on early extinguishment of debt, net(1)                      |   |   | 26.1        |   |   |         | 26.1   |   |     |   | 8.2    |     |   |   | 8.2 |   |
| Goodwill impairment(2)                                            |   |   | -           |   |   |         | 18.7   |   |     |   | -      |     |   |   | 18.7 |   |
| Restructuring and other charges(3)                                |   |   | -           |   |   |         | 24.5   |   |     |   | -      |     |   |   | 24.5 |   |
| Hedge losses(4)                                                   |   |   | -           |   |   |         | 7.5    |   |     |   | 0.1    |     |   |   | 7.6 |   |
| Equity award expense(5)                                           |   |   | 1.3         |   |   |         | 2.4    |   |     |   | 1.6    |     |   |   | 2.7 |   |
| Other items, net(6)                                               |   |   | 5.2         |   |   |         | 8.4    |   |     |   | 5.0    |     |   |   | 8.2 |   |
| Adjusted EBITDA before pro forma effects of profitability program |   |   | 90.6        |   |   |         | 202.5  |   |     |   | 48.8   |     |   |   | 160.7 |   |

| (1) | Represents net losses related to debt refinancing.                              |
|-----|---------------------------------------------------------------------------------|
| (2) | Represents impairment of goodwill allocated to the coated paper segment.        |
| (3) | Represents costs associated with the shut-down of three paper machines.         |
| (4) | Represents unrealized losses on energy-related derivative contracts.            |
| (5) | Represents amortization of non-cash incentive compensation.                     |
| (6) | Represents miscellaneous non-cash and other non-recurring earnings adjustments. |

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|                                    |                 |   | VERSO PAPER      |    |   | VERSO HOLDINGS   |    |
|-----------------------------------------|----------------------|--------|------------------|---------|--------|------------------|---------|
|                                    |                 |   | Six Months Ended |    |   | Six Months Ended |    |
|                                    |                 |   | June 30,         |    |   | June 30,         |    |
| (Dollars in thousands)                  |                 | 2012   |             |    | 2011   |             |    | 2012 |   |   | 2011 |   |
| Net cash provided by (used in):         |                 |   |             |    |   |             |    |   |   |   |   |   |
|                                    | Operating activities |   | $                | (46,504 | )      |             | $       | (60,155 | ) |   | $ | (46,452 | ) |   | $ | (60,140 | ) |
|                                    | Investing activities |   |             | (30,179 | )      |             |    | (30,200 | ) |   |   | (30,179 | ) |   |   | (30,200 | ) |
|                                    | Financing activities |   |             | 2,968   |   |             |    | (6,032 | ) |   |   | 2,916 |   |   |   | (6,047 | ) |
| Net change in cash and cash equivalents |                 | $      | (73,715          | )       |   | $                | (96,387 | ) |   | $ | (73,715 | ) |   | $ | (96,387 | ) |

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ITEM 4.  CONTROLS AND PROCEDURES

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ITEM 1.   LEGAL PROCEEDINGS

ITEM 1A.   RISK FACTORS

ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

ITEM 4.   MINE SAFETY DISCLOSURES

ITEM 5.   OTHER INFORMATION

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ITEM 6.   EXHIBITS

| Exhibit |                                                                                                                                                                                                            |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  | Description                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                            |
| 3.1     | Amended and Restated Certificate of Incorporation of Verso Paper Corp.(1)                                                                                                                                       |
|    |                                                                                                                                                                                                            |
| 3.2     | Amended and Restated Bylaws of Verso Paper Corp.(2)                                                                                                                                                             |
|    |                                                                                                                                                                                                            |
| 3.3     | Certificate of Formation, as amended, of Verso Paper Holdings LLC.(3)                                                                                                                                           |
|    |                                                                                                                                                                                                            |
| 3.4     | Amended and Restated Limited Liability Company Agreement of Verso Paper Holdings LLC.(3)                                                                                                                        |
|    |                                                                                                                                                                                                            |
| 12      | Computation of Ratio of Earnings to Fixed Charges.                                                                                                                                                              |
|    |                                                                                                                                                                                                            |
| 31.1    | Certification of Principal Executive Officer of Verso Paper Corp. pursuant to Rule 13a-14(a) under Securities Exchange Act of 1934.                                                                             |
|    |                                                                                                                                                                                                            |
| 31.2    | Certification of Principal Financial Officer of Verso Paper Corp. pursuant to Rule 13a-14(a) under Securities Exchange Act of 1934.                                                                             |
|    |                                                                                                                                                                                                            |
| 31.3    | Certification of Principal Executive Officer of Verso Paper Holdings LLC pursuant to Rule 13a-14(a) under Securities Exchange Act of 1934.                                                                      |
|    |                                                                                                                                                                                                            |
| 31.4    | Certification of Principal Financial Officer of Verso Paper Holdings LLC pursuant to Rule 13a-14(a) under Securities Exchange Act of 1934.                                                                      |
|    |                                                                                                                                                                                                            |
| 32.1    | Certification of Principal Executive Officer of Verso Paper Corp. pursuant to Rule 13a-14(b) under Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code.        |
|    |                                                                                                                                                                                                            |
| 32.2    | Certification of Principal Financial Officer of Verso Paper Corp. pursuant to Rule 13a-14(b) under Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code.        |
|    |                                                                                                                                                                                                            |
| 32.3    | Certification of Principal Executive Officer of Verso Paper Holdings LLC pursuant to Rule 13a-14(b) under Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code. |
|    |                                                                                                                                                                                                            |
| 32.4    | Certification of Principal Financial Officer of Verso Paper Holdings LLC pursuant to Rule 13a-14(b) under Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code. |

----

| (1) | Incorporated by reference to Amendment No. 5 to Verso Paper Corp.’s Registration Statement on Form S-1 (Registration Statement No. 333-148201), filed with the Securities and Exchange Commission (the "SEC") on May 8, 2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2) | Incorporated by reference to Amendment No. 3 to Verso Paper Corp.’s Registration Statement on Form S-1 (Registration Statement No. 333-148201), filed with the SEC on April 28, 2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference to Verso Paper Holding LLC’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC on March 12, 2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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SIGNATURES

| Date:  August 9, 2012 |   |                    |   |                                                   |
|---------------------------------|--------|-------------------------|--------|--------------------------------------------------------|
|                            |   | VERSO PAPER CORP.  |
|                            |   |                    |
|                            |   | By:                     |   | /s/ David J. Paterson                                  |
|                            |   |                    |   | David J. PatersonPresident and Chief Executive Officer |

|   |   |   |
|--------|--------|--------|
|   |   |   |
|   |   | By:    |   | /s/ Robert P. Mundy |
|   |   |   |   | Robert P. MundySenior Vice President and Chief Financial Officer  |

| Date:  August 9, 2012 |   |                           |   |                                                   |
|---------------------------------|--------|--------------------------------|--------|--------------------------------------------------------|
|                            |   | VERSO PAPER HOLDINGS LLC  |
|                            |   |                           |
|                            |   | By:                            |   | /s/ David J. Paterson                                  |
|                            |   |                           |   | David J. PatersonPresident and Chief Executive Officer |

|   |   |   |
|--------|--------|--------|
|   |   |   |
|   |   | By:    |   | /s/ Robert P. Mundy |
|   |   |   |   | Robert P. MundySenior Vice President and Chief Financial Officer  |

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EXHIBIT INDEX

| Exhibit |                                                                                                                                                                                                            |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  | Description                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                            |
| 3.1     | Amended and Restated Certificate of Incorporation of Verso Paper Corp.(1)                                                                                                                                       |
|    |                                                                                                                                                                                                            |
| 3.2     | Amended and Restated Bylaws of Verso Paper Corp.(2)                                                                                                                                                             |
|    |                                                                                                                                                                                                            |
| 3.3     | Certificate of Formation, as amended, of Verso Paper Holdings LLC.(3)                                                                                                                                           |
|    |                                                                                                                                                                                                            |
| 3.4     | Amended and Restated Limited Liability Company Agreement of Verso Paper Holdings LLC.(3)                                                                                                                        |
|    |                                                                                                                                                                                                            |
| 12      | Computation of Ratio of Earnings to Fixed Charges.                                                                                                                                                              |
|    |                                                                                                                                                                                                            |
| 31.1    | Certification of Principal Executive Officer of Verso Paper Corp. pursuant to Rule 13a-14(a) under Securities Exchange Act of 1934.                                                                             |
|    |                                                                                                                                                                                                            |
| 31.2    | Certification of Principal Financial Officer of Verso Paper Corp. pursuant to Rule 13a-14(a) under Securities Exchange Act of 1934.                                                                             |
|    |                                                                                                                                                                                                            |
| 31.3    | Certification of Principal Executive Officer of Verso Paper Holdings LLC pursuant to Rule 13a-14(a) under Securities Exchange Act of 1934.                                                                      |
|    |                                                                                                                                                                                                            |
| 31.4    | Certification of Principal Financial Officer of Verso Paper Holdings LLC pursuant to Rule 13a-14(a) under Securities Exchange Act of 1934.                                                                      |
|    |                                                                                                                                                                                                            |
| 32.1    | Certification of Principal Executive Officer of Verso Paper Corp. pursuant to Rule 13a-14(b) under Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code.        |
|    |                                                                                                                                                                                                            |
| 32.2    | Certification of Principal Financial Officer of Verso Paper Corp. pursuant to Rule 13a-14(b) under Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code.        |
|    |                                                                                                                                                                                                            |
| 32.3    | Certification of Principal Executive Officer of Verso Paper Holdings LLC pursuant to Rule 13a-14(b) under Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code. |
|    |                                                                                                                                                                                                            |
| 32.4    | Certification of Principal Financial Officer of Verso Paper Holdings LLC pursuant to Rule 13a-14(b) under Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code. |

----

| (1) | Incorporated by reference to Amendment No. 5 to Verso Paper Corp.’s Registration Statement on Form S-1 (Registration Statement No. 333-148201), filed with the Securities and Exchange Commission (the "SEC") on May 8, 2008.  |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2) | Incorporated by reference to Amendment No. 3 to Verso Paper Corp.’s Registration Statement on Form S-1 (Registration Statement No. 333-148201), filed with the SEC on April 28, 2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference to Verso Paper Holding LLC’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC on March 12, 2008.  |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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