SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-K


/ X / Annual  Report  Pursuant  to  Section  13 or 15(d)  of the  Securities
      Exchange Act of 1934 [Fee Required]

      For the fiscal year ended December 31, 1995 or

/   / Transition  report  pursuant  to Section 13 or 15(d) of the  Securities
      Exchange Act of 1934 [No Fee Required]

Commission file number 0-7163


                 AMERICAN FILTRONA CORPORATION
                         (Registrant)


           VIRGINIA                       54-0574583
          (State of                    (I.R.S. Employer
        Incorporation)                Identification No.)

3951 WESTERRE PARKWAY, SUITE 300
RICHMOND, VIRGINIA                             23233
(Executive Offices)                         (Zip Code)

Registrant's telephone number - (804) 346-2400

Securities registered pursuant to Section 12(g) of the Act:

               Common Stock, Par Value $1 per share
                         (Title of Class)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for at least the past 90 days.  Yes.  X   No.____
                                                 -----

Indicate by check mark if disclosure of delinquent  filings pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated  by  reference  in Part III of this Form 10-K for any  amendment to
this Form 10-K. ____


Aggregate market value of the Common Stock held by non-affiliates of the
registrant as of January 29, 1996:  $65,300,945*

Number of shares of Common Stock outstanding as of January 29, 1996:  3,736,292

------------------------

         *In determining this figure, an aggregate of 1,843,511 shares of Common
Stock reported in the  registrant's  proxy statement for the 1996 annual meeting
of stockholders  as beneficially  owned on January 29, 1996 by Rudolph H. Bunzl,
Frances B. Bunzl,  and the  co-trustees of certain trusts for the benefit of the
wife of Rudolph H. Bunzl and others and the  children of Rudolph H. Bunzl and of
Walter H. Bunzl have been excluded as held by affiliates.  Such exclusions shall
not  constitute  an  admission  that any of such  persons is an  affiliate.  The
aggregate  market  value has been  computed  based on the  closing  price in the
NASDAQ  Over-The-Counter  National Market as reported by The Wall Street Journal
for Monday, January 29, 1996.

<PAGE>

                      DOCUMENTS INCORPORATED BY REFERENCE


         1.       Portions of American Filtrona  Corporation's  Annual Report to
                  Shareholders for the year ended December 31, 1995 (the "Annual
                  Report") are  incorporated by reference into Parts I and II of
                  this Form 10-K.

         2.       Portions of American Filtrona Corporation's  definitive Proxy
                  Statement for its 1996 Annual Meeting of  Shareholders  filed
                  with  the  Securities  and Exchange  Commission  pursuant  to
                  Regulation 14A under the Securities  Exchange Act of 1934 (the
                  "Proxy Statement") are incorporated by reference into Part III
                  of this Form 10-K.


                                     PART I
Note:             Unless the context otherwise indicates, the term
                  "Company", as used hereafter, refers to American Filtrona
                  Corporation and its subsidiaries.


ITEM 1.           BUSINESS


                                    GENERAL

         American Filtrona  Corporation was incorporated in New York in 1954 and
in  1971  moved  its  domicile  from  New  York  to  Virginia,  where  it is now
incorporated.  The Company develops and  manufactures  various fiber products in
the United States and various plastic  products in the United States and Canada.
The Company's  principal  products are: fiber filters for cigarettes and cigars;
fiber ink reservoirs and tips for writing instruments and other bonded fiber
specialties;  and a variety of plastic  products,  converted  from plastic
resins and films and used in food packaging,  lighting  fixtures,  signs and
displays  and many  other  applications.  In 1995,  bonded  fiber  products
represented  35% of the Company's  consolidated  net sales and plastic  products
represented 65% of  consolidated  net sales.  The Company employs  approximately
1,150 persons.

<PAGE>

         The Company's business is described more fully below.

                             BONDED FIBER PRODUCTS

TOBACCO FILTERS

         At its Richmond, Virginia plants the Company manufactures from fibers a
variety of tobacco  filters for cigarettes  and cigars.  The Company sells these
filters  primarily to major cigarette  manufacturers  that either produce or are
capable of producing their own filters and have far greater financial resources.
Therefore,  to retain its relative  position in the industry the Company depends
upon its research to develop specialty or patented filters and upon its customer
service.

         The Company  believes  that it is  presently  one of three  independent
manufacturers  of tobacco  filters in the United  States.  The vast  majority of
filters are  manufactured by the cigarette  companies  themselves.  In 1995, the
Company's cigarette filters were used on only about 2% of all cigarettes sold in
the United States and only about 3% of cigarettes manufactured in the United
States.

<PAGE>

         The Company's  patented  FILTRONA(R) SCS filter has had good acceptance
since its  introduction in mid-1970 and accounted for about 13% of the Company's
1995 bonded fibers sales.  FILTRONA(R) SCS IV, the latest  generation of filters
resulting from specialized production equipment designed by the Company, is used
by R. J.  Reynolds  Tobacco  Company  ("Reynolds"),  a subsidiary of RJR Nabisco
Inc., on its "Vantage" brand cigarettes.  The "Vantage" cigarette,  which is the
main brand on which this filter is used, is one of the leading  cigarette brands
in the United States.

         The Company  produces  filters for "Merit Ultima" brand  cigarettes for
subsidiaries of Philip Morris Companies Inc.  (collectively,  "Philip  Morris"),
using Philip  Morris'  concept and design and utilizing  the  Company's  process
capabilities  and technology.  The Company also produces  filters for "Next" and
"Philip  Morris One" brand  cigarettes  that are sold by Philip Morris in Japan.
FILTRONA(R) TWA specialty  filters continue to be supplied and are used by Brown
& Williamson  Tobacco  Corporation on "Barclay",  "Kool Ultra" and "Capri" brand
cigarettes. FILTRONA(R) cigarette filters are also used on some smaller U.S. and
foreign  cigarette and cigar brands.  Charcoal dual filters are sold to domestic
cigarette manufacturers for export sales to the Far East, particularly Japan.

         During 1995, the Company had approximately 26 tobacco filter customers,
the largest of which was Philip Morris, with approximately  12% of the Company's
net  sales  and  approximately  35% of the Company's  bonded  fibers sales.  Any
significant  loss of the  Philip  Morris business  could have a materially
adverse  effect on the  Company's  sales and income.

         Reports and speculation  with respect to the alleged  harmful  physical
effect of cigarette  smoking have been published since the early 1950's.  In the
United  States,  cigarette  advertising  has been  restricted,  various  warning
statements  have  been  required  to be  placed on  cigarette  packaging  and in
advertising, prohibitions against smoking in public and certain non-public areas
have been  enacted and various  other  official and  unofficial  steps have been
taken to  discourage  cigarette  smoking.  In  addition,  litigation  is pending
against leading U.S.  manufacturers of consumer tobacco products seeking damages
for health problems  alleged to have resulted from the use of tobacco in various
forms. Also, sales and other taxes affecting  cigarettes,  levied by the federal
government and various states and municipalities, have been increasing in recent
years. In 1995, the Food and Drug  Administration  sought to assert jurisdiction
over the advertising and marketing of cigarettes.  A number of foreign countries
have also increased taxes and taken steps to restrict cigarette  advertising and
to  discourage  cigarette  smoking.  The  Company  believes,  however,  that its
emphasis on tobacco  filters with high  filtration  efficiency  or other special
properties   might  reduce  to  some  degree  any  adverse   effect  that  these
developments  might have on the  Company's  sales and  earnings.  Moreover,  any
increase in the Company's U.S. cigarette filter market share could further
counteract such adverse effects.

<PAGE>

WRITING INSTRUMENT PRODUCTS

         The Company  manufactures  ink reservoirs,  writing tips and wicks from
fibers at its primary Richmond,  Virginia plant, utilizing the same types of raw
materials and machinery as are used for the manufacture of tobacco filters.  Ink
reservoirs for marking pens,  markers and  highlighters are sold under the trade
name  TRANSORB(R).  Virtually all of the major  domestic  handwriting  reservoir
customers  using ink reservoirs  have converted to the TRANSORB(R) XPE reservoir
and the range of  applications  has been  expanded to include  highlighters  and
"pocket"  markers.  The  Company's  market share with the  Japanese  handwriting
instrument  manufacturers  has grown based on acceptance  of this  product.  The
Company has also introduced the TRANSORB(R) XPT reservoir,  a large diameter ink
reservoir.  Writing  tips for porous  point pens and  markers are sold under the
trade name  TRANSTIP(R).  Wicks for ink  transfer to the ball tip in roller ball
pens are sold under the trade name TRANSWICK(R).

         Approximately  77  writing  instrument   manufacturers  purchase  these
products  from the  Company,  generally  under  purchase  orders  and not  under
long-term contracts.  During 1995, the largest such customer accounted for about
4.1% of the Company's net sales.

         No published  data or  statistics  are available on domestic or foreign
competitors in supplying ink reservoirs and writing tips to the writing
instrument  industry  in the United  States.  However,  the Company believes  it
has about 16 such  competitors  and is the  leading  United  States supplier of
ink reservoirs to the felt tip and fine line pen market. The Company relies on
customer  service and know-how to maintain  its  relative  position in this
business.

<PAGE>

OTHER BONDED FIBER PRODUCTS

         The Company  produces  miscellaneous  other fiber  elements that can be
used in liquid reservoirs and applicators and various filtration applications in
the health care,  personal care and  household  products  industries,  including
wicks for diagnostic test devices and pipette tip filters.  Sales of these other
fiber products in 1995 were about 3.2% of the Company's net sales.

DISTRIBUTION AND PROMOTION

         All  of  the   Company's   domestic   sales  of  tobacco   filters  and
substantially all of its domestic and export sales of ink reservoirs and writing
tips are  made to  industrial  customers  from the  Richmond,  Virginia  plants.
Approximately 92% of the Company's 1995 sales of bonded fiber products were made
to domestic customers.

         The  Company  relies on personal  contact  with its  customers  for the
promotion of its bonded fiber products. Advertising is used only occasionally in
the development of new markets for certain specialty products.

<PAGE>

                                PLASTIC PRODUCTS

         The  Company's   plastic  products   business  is  conducted  by  eight
subsidiaries:  Southern  Plastics  Company  ("Southern  Plastics"),  an extruder
located in  Columbia,  South  Carolina;  Porth  Plastic  Company  ("Porth"),  an
extruder  located in Des Plaines,  Illinois;  A&B  Plastics,  Inc.  ("A&B"),  an
extruder  located in Yakima,  Washington;  Duall Plastics,  Inc.  ("Duall"),  an
extruder located in Athol,  Massachusetts;  A&B  Plastics-Southwest,  Inc. ("A&B
Southwest"),  an extruder located in Phoenix,  Arizona; Tri-Lite Plastics, Inc.,
an  extruder  located  in  Fallsington,   Pennsylvania   ("Tri-Lite");  Tri-Lite
Plastics-South,  Inc.,  an  extruder  located in Pell City,  Alabama  ("Tri-Lite
South");  and Filpac Inc.  ("Filpac"),  a custom converter of flexible packaging
materials located in Terrebonne, Quebec, Canada near Montreal.

         Custom extruded  profiles,  conforming to rigid standards,  are sold to
original  equipment  manufacturers  ("OEM's") in the lighting fixture,  sign and
display,  commercial  refrigeration,   recreational  equipment,   transportation
equipment,  fencing,  health  care,  office  products,  marine  and  electronics
industries. Extruded flat sheets are sold to OEM's in the lighting fixture, sign
and display, glazing and marine industries,  and to vacuum formers,  fabricators
and  distributors.  The  Company's  plastic  extrusions  are sold through  sales
engineers and through  manufacturers'  representatives.  Personal contact rather
than advertising is relied upon to promote these products.

         Filpac sells flexible packaging  materials,  primarily for the Canadian
snack food industry.  Filpac  purchases a variety of plastic films that are then
printed,  laminated,  coated,  slit and sold in rolls for further  conversion by
customers.  The primary converting operations are flexographic printing of up to
eight colors,  backside-patterned  adhesive  coating  and/or  adhesive thin film
lamination  of a variety of  packaging  films.  Rolls are sold  directly to food
processors,  supermarkets, bakeries and others who use these products to package
a variety of snack  foods  such as potato  chips,  peanuts  and  candies.  These
products are sold  directly by Filpac to about 100  customers  located in Quebec
and Ontario,  Canada and the United  States.  Promotion of these  products is by
personal contact rather than advertising.

         About  24% of  plastic  product  sales  for 1995  were made to the food
packaging industry, 20% to the lighting fixture industry and 11% to the sign and
display   industry.   The  remaining  sales  were  spread  among  a  variety  of
applications  discussed above. The largest customer  accounted for about 8.6% of
the Company's 1995 net sales.

         The  plastic  products  business is highly  competitive,  and there are
plastic extruders and flexible packaging  converters with greater resources than
the  Company.  The  Company  has a number of major  competitors  in its  plastic
products market areas but believes that it is a significant supplier of flexible
packaging  materials in eastern Canada and of plastic profile  extrusions in the
United States.

<PAGE>

                               SOURCES OF SUPPLY

         The Company's  diverse raw material  requirements  are widely available
from many different  suppliers.  The Company has no long-term contracts with its
suppliers; however, the Company believes its sources of supply to be adequate at
present sales levels. The Company's energy requirements are relatively low.

                            RESEARCH AND DEVELOPMENT

         Patented   tobacco   filters  have  been   introduced  by  the  Company
periodically  since 1958. The Company's writing  instrument product line and its
bonded fiber lines for other  industries were derived from its basic  technology
in the area of tobacco filters. See BONDED FIBER PRODUCTS above.

         The Company  conducts its bonded fiber products  research,  development
and engineering  program at its Richmond facilities and is constantly engaged in
new  product  and  process   development.   During  1995,   the  Company   spent
approximately  $2,558,000 on research  activities  relating to  development  and
engineering of new products or improvements of existing  products and processes,
all of which was Company  sponsored.  During 1994 and 1993, about $2,377,000 and
$2,263,000,  respectively,  was  spent on such  activities,  all of  which  were
Company sponsored.

         The  Company  owns 36 U.S.  patents  in the fiber  products  area.  The
Company  considers 7 of its patents to be material  with  respect to its present
bonded  fibers  business and these  patents  expire  between 1996 and 2007.  The
Company has no knowledge of any infringement  questions  with  respect to these
patents and believes its patent position to be generally adequate for the
conduct of its business.

<PAGE>

         In addition,  the Company conducts product  development and engineering
activities in the plastics segment. In 1995, approximately $703,000 was spent on
these activities in the plastics  segment.  Approximately  $713,000 and $628,000
was spent on these activities in 1994 and 1993, respectively. The Company owns 1
additional United States patent and 7 registered trademarks with respect to this
business, none of which the Company considers to be material.

                             ENVIRONMENTAL MATTERS

         The Company does not believe that  compliance  with federal,  state and
local  provisions that have been enacted or adopted  regulating the discharge of
materials into the environment,  or otherwise  relating to the protection of the
environment, will have any material effect on its financial position, results of
operations or competitive position.

                 FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS

         Information  with  respect to the  Company's  operations  in  different
industry  segments  and  geographic  areas is presented on page 20 of the Annual
Report  in  Note  8 of  Notes  to  Consolidated  Financial  Statements,  and  is
incorporated herein by reference thereto.

                      FINANCIAL INFORMATION ABOUT FOREIGN
                    AND DOMESTIC OPERATIONS AND EXPORT SALES

         Financial   information   about  the  Company's  foreign  and  domestic
operations  is presented  on page 20 of the Annual  Report in Note 8 of Notes to
Consolidated  Financial  Statements,  and is  incorporated  herein by  reference
thereto. See also PLASTIC PRODUCTS above.

<PAGE>

ITEM 2.  PROPERTIES

         The following is a brief description of the principal properties of the
Company, all of which are owned except as stated below.

                  LOCATION                          PRINCIPAL OPERATIONS

          BONDED FIBERS FACILITIES

              Richmond,Virginia                     Production of tobacco
                                                    filters, ink reservoirs,
                                                    writing tips and wicks,
                                                    and other fiber products.

              Richmond, Virginia                    Production of conventional
              (lease expiring 1996)                 tobacco filters


         PLASTIC PRODUCTS FACILITIES

              Athol, Massachusetts                  Production of custom plastic
                                                    extruded profiles

              Columbia, South Carolina              Production of custom plastic
                                                    extruded profiles and
                                                    plastic sheet

              Des Plaines, Illinois                 Production of custom plastic
                                                    extruded profiles

              Pell City, Alabama                    Production of custom plastic
                                                    extruded profiles

              Terrebonne, Quebec, Canada            Production of flexible
                                                    packaging materials

              Yakima, Washington                    Production of custom plastic
                                                    extruded profiles


              Fallsington, Pennsylvania             Production of custom plastic
              (lease expiring 1998)                 extruded profiles

              Phoenix, Arizona                      Production of custom plastic
              (lease expiring 2001)                 extruded profiles and
                                                    plastic sheet

         CORPORATE OFFICES

              Richmond, Virginia
              (lease expiring 1998)

<PAGE>

         The property  owned by the Company in Richmond,  Virginia also includes
research and development  facilities,  land and buildings leased by an unrelated
corporation, and land available for future expansion.

         Management  believes that the Company's  facilities  are generally well
maintained  and  adequate  for its  business  at present and  foreseeable  sales
levels.

ITEM 3.  LEGAL PROCEEDINGS
         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
         Inapplicable.


           ADDITIONAL  INFORMATION - EXECUTIVE  OFFICERS OF THE COMPANY

       The names and ages of all executive officers of the Company, as
of March  10,  1996,  are set  forth  below.  The term of office of each such
officer is until the next annual  meeting of the Board of  Directors  (April 23,
1996).  All of such  officers have been employed by the Company for at least the
last five years.

   NAME                        AGE                 OFFICES

John L. Morgan                  61              Chairman (since January
                                                1995) and Chief Executive
                                                Officer, having previously
                                                served as President and
                                                Chief Executive Officer,
                                                Director and Member of
                                                Executive Committee

Leo C. Drozeski, Jr.            56              President (since January
                                                1995), Chief Operating
                                                Officer (since January
                                                1993), having previously
                                                served as Executive Vice
                                                President and Chief
                                                Operating Officer (since
                                                January 1993), Executive
                                                Vice President (since 1992)
                                                and prior thereto, Vice
                                                President - Plastic Products
                                                and Director

John D. Barlow, Jr.             61              Vice President - Finance and
                                                Director

Randall L. Hagan                50              Vice President - Bonded
                                                Fiber Products and President
                                                of American Filtrona
                                                Company, a division of the
                                                Company

Anthony M. Vincent              49              Vice President (since April
                                                1994) and prior thereto Vice
                                                President - Industrial
                                                Filtration Products and
                                                President of Dollinger
                                                Corporation, a former
                                                subsidiary of the Company

<PAGE>

                                     PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
         STOCKHOLDER MATTERS

         The  information  contained  on page 24 of the Annual  Report under the
captions "Common Stock Information" and "Dividend Information" and, with respect
to dividends and market prices under the caption "Quarterly Financial and Common
Stock Data," is incorporated herein by reference thereto.  The Company has about
1,200 shareholders.

ITEM 6.  SELECTED FINANCIAL DATA

         The information  for the five years ended December 31, 1995,  contained
on page 22 of the Annual Report under the caption "Historical  Financial Review"
is incorporated herein by reference thereto.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS

         The  information  contained  on page 12 of the Annual  Report under the
caption  "Management's  Discussion  and  Analysis of  Financial  Statements"  is
incorporated herein by reference thereto.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

         The consolidated financial statements contained on pages 14 to 20, and
the  information  with respect to Sales and  Earnings  under the caption
"Quarterly  Financial and Common Stock Data" on page 24 of the Annual Report are
incorporated herein by reference thereto.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
         ACCOUNTING AND FINANCIAL DISCLOSURE

         Inapplicable.

<PAGE>

                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

         The  information  contained on pages 1 through 6 of the Proxy Statement
under the caption "Election of Directors" concerning Directors of the Company is
incorporated herein by reference thereto. See "Additional Information -
Executive Officers of the Company" at the end of Part I above for information
about the executive officers of the Company.

ITEM 11. EXECUTIVE COMPENSATION

         The information contained on pages 10 through 15 of the Proxy Statement
under  the  caption  "Compensation  of  Executive  Officers  and  Directors"  is
incorporated herein by reference thereto.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

         The information  contained on pages 7 through 10 of the Proxy Statement
under the caption "Stock Ownership" is incorporated herein by reference thereto.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         Inapplicable.

<PAGE>

                                    PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

         (a)(1) and (2) The  response to this portion of Item 14 is submitted as
a separate section of this report.

         (a)(3)  Exhibits

The  following  documents  are  filed as  exhibits  to this Form

10-K pursuant to Item 601 of Regulation S-K:

         3.1               Restated Articles of Incorporation of the
                           registrant (filed as Exhibit 3.1 to the
                           registrant's Annual Report on Form 10-K for the
                           fiscal year ended December 31, 1994, and
                           incorporated herein by reference thereto)

         3.2               By-laws of the registrant (filed herewith)

         10.1(a)           Incentive Stock Option Plan (filed as Exhibit 10.1(a)
                           to the  registrant's  Annual  Report on Form 10-K for
                           the  fiscal  year  ended   December  31,  1994,   and
                           incorporated herein by reference thereto)*

         10.1(b)           Amendment  to  Incentive  Stock Option Plan (filed as
                           Exhibit 10.1(b) to the registrant's  Annual Report on
                           Form 10-K for the  fiscal  year  ended  December  31,
                           1994, and incorporated herein by reference thereto)*

         10.2              1988 Performance Shares Plan (filed as Exhibit 10.2
                           to the registrant's Annual Report on Form 10-K for
                           the fiscal year ended December 31, 1994, and
                           incorporated herein by reference thereto)*

         10.3              1988 Stock  Option Plan (filed as Exhibit 10.3 to the
                           registrant's  Annual  Report  on  Form  10-K  for the
                           fiscal year ended December 31, 1994, and incorporated
                           herein by reference thereto)*

         10.4              American Filtrona Corporation Supplemental Benefit
                           Plan (filed herewith)*

         10.5              1995 Stock Incentive Plan (filed as Exhibit A to
                           the registrant's Proxy Statement, dated March 10,
                           1995, for the 1995 annual shareholder meeting and
                           incorporated herein by reference thereto)*

         13                The registrant's Annual Report to Shareholders for
                           the year ended December 31, 1995 (filed herewith)
                           (Note 1)

         22                List of subsidiaries of the registrant (filed
                           herewith)

         23.1              Consent of Independent Accountants (filed herewith)

         (b) No reports on Form 8-K have been filed  during the last  quarter of
the registrant's 1995 fiscal year.

         NOTE 1. With the exception of the information incorporated in this Form
10-K by reference thereto, the Annual Report shall not be deemed "filed" as part
of this Form 10-K.

* The marked items are compensatory  plans or arrangements  required to be filed
as an exhibit to this form pursuant to Item 14(c) of this Form 10-K.

<PAGE>

FORM 10-K--ITEM 14(a)(1) AND (2) AND ITEM 14(d)

AMERICAN FILTRONA CORPORATION AND SUBSIDIARIES

LIST OF FINANCIAL  STATEMENTS  AND FINANCIAL  STATEMENT  SCHEDULES

The following consolidated   financial   statements  of  American  Filtrona
Corporation  and subsidiaries,   included  in  the  Annual  Report  of  the
registrant  to  its shareholders for the year ended December 31, 1995, are
incorporated by reference in Item 8:

         Consolidated Balance Sheet - December 31, 1995 and 1994

         Consolidated Statement of Income - Years ended December 31,
         1995, 1994 and 1993

         Consolidated Statement of Shareholders' Equity - Years ended
         December 31, 1995, 1994 and 1993

         Consolidated Statement of Cash Flows - Years ended
         December 31, 1995, 1994 and 1993

         Notes to Consolidated Financial Statements

All  schedules  for  which  provision  is  made  in  the  applicable  accounting
regulation of the Securities and Exchange  Commission are not required under the
related instructions or are inapplicable and therefore have been omitted.

<PAGE>

REPORT OF COOPERS & LYBRAND L.L.P.


                         [COOPERS & LYBRAND LETTERHEAD]

                       REPORT OF INDEPENDENT ACCOUNTANTS

To the Shareholders and Board of Directors
American Filtrona Corporation

     We have audited the accompanying consolidated balance sheets of
American Filtrona Corporation and Subsidiaries as of December 31, 1995 and
1994, and for each of the three years in the period ended December 31, 1995,
which financial statements are included on pages 14 through 20 of the 1995
Annual Report to Shareholders of American Filtrona Corporation and
incorporated by reference herein. These financial statements are the
responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

     We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable
basis for our opinion.

     In our opinion, the financial statements referred to above present fairly,
in all material respects, the consolidated financial position of American
Filtrona Corporation and Subsidiaries at December 31, 1995 and 1994, and
the consolidated results of their operations and their cash flows for each
of the three years in the period ended December 31, 1995 in conformity with
generally accepted accounting principles.

                               COOPERS & LYBRAND L.L.P.

Richmond, Virginia
January 23, 1996



<PAGE>

                                   SIGNATURES

         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.

                                       AMERICAN FILTRONA CORPORATION
                                              (Registrant)

Dated:  March 20, 1996                      By:
                                               John L. Morgan, Chairman
                                               and Chief Executive Officer


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
this  report has been  signed  below by the  following  persons on behalf of the
registrant and in the capacities indicated as of March 20, 1996.

   SIGNATURE                           TITLE


                                      Director
Rudolph H. Bunzl


                                      Vice President - Finance
John D. Barlow, Jr.                   and Director (Principal
                                      Financial and Accounting
                                      Officer)


                                      Chairman and Director
John L. Morgan                        (Principal Executive
                                      Officer)


                                      President and Director
Leo C. Drozeski, Jr.                  (Principal Operating
                                      Officer)


                                      Director
Bennett L. Kight


                                      Director
Stanley F. Pauley


                                      Director
Gilbert M. Rosenthal


                                      Director
Wallace Stettinius


                                      Director
Bernard C. Wampler


                                      Director
Harry H. Warner


<PAGE>

                                 EXHIBIT INDEX

<TABLE>
<CAPTION>

NUMBER AND NAME OF EXHIBIT                              PAGE NUMBER
<S>                                                 <C>
3.1     Restated Articles of                        Incorporated by reference - see page 17
        Incorporation

3.2     By-laws                                     Pages 26 through 41

10.1(a) Incentive Stock Option                      Incorporated by reference - see page 17
        Plan

10.1(b) Amendment to Incentive                      Incorporated by reference - see page 17
        Stock Option Plan

10.2    1988 Performance                            Incorporated by reference - see page 17
        Shares Plan

10.3    1988 Stock Option                           Incorporated by reference - see page 17
        Plan

10.4    Supplemental Benefit Plan                   Pages 42 through 63

10.5    1995 Stock Incentive Plan                   Incorporated by reference - see page 17


13      Annual Report                               Pages 64 through 90

22      List of Subsidiaries                        Page 91

23.1    Consent of Independent
        Accountants                                 Page 92

</TABLE>