Knight-Celotex to Seek Chapter 11 Protection

NORTHFIELD, Ill.--(Business Wire)--
Knight-Celotex, the world`s largest fiberboard manufacturer, has been forced to
seek the protection of the Court and has filed for Chapter 11 of the U.S.
Bankruptcy Code in the United States Bankruptcy Court for the state of Illinois.

The Knight-Celotex Management Team deemed the action necessary after the
company`s accounts were frozen by Bank of America last week.

Throughout 2008, the company voluntarily took steps to ensure the viability of
its operations. During that time the company maintained a positive cash flow and
paid all principal and interest on time. Despite these efforts, last week Bank
of America made the decision not to renew the company`s credit facilities and
froze the company`s accounts.

"We believe that filing for Chapter 11 protection provides us with the best
opportunity to protect our employees and our operations, while fulfilling our
obligations to our customers, vendors and the communities in which we operate,"
said James Knight, CEO of Knight-Celotex.

Knight-Celotex has retained Crane, Heyman, Simon, Welch & Clar of Chicago for
legal counsel.

About Knight-Celotex

Headquartered in Northfield, IL, Knight-Celotex is the largest fiberboard
manufacturer in the world and the only US fiberboard manufacturer that both
manufactures and ships products nationally within the United States.
Knight-Celotex is privately owned by Knight Industries, LLC and has operations
in Lisbon Falls, ME; Sunbury, PA; and Danville, VA.

For Knight-Celotex:
Laura B Peet
917-860-6285
212-956-7817
lbptalk@aol.com

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