SAN FRANCISCO, CA -- March 25, 2009 -- New Leaf Paper, the industry leader and most recognized brand for high-quality, environmentally superior printing, office and retail papers, today announced the completion of a $5 million private equity investment round led by Pacific Community Ventures, LLC ("PCV") a private equity firm focused on small, high-growth California businesses.

The new funding will be used to build out New Leaf Paper's retail paper product line, continue its development of better and more environmentally responsible papers and ultimately support its mission of inspiring a fundamental shift toward sustainability in the paper industry.

For the first ten years of New Leaf Paper's history, the company grew organically, generating $30 million in sales as of last year.

"We chose the self-funded path because we wanted to control the mission and values behind New Leaf Paper and we wanted to prove the business model prior to outside financing," said Jeff Mendelsohn, CEO of New Leaf Paper. "Our track record shows that a double bottom line approach in the paper industry can be successful and we are pleased to have PCV as a capital partner that champions these same values. This equity investment will spur our growth plans of achieving more than $100 million in sales."

PCV is a double bottom line private equity firm focused on helping small, high-growth California businesses execute their growth plans through capital infusions and an expertise in consumer brand awareness. Founder and President Penelope Douglas cites New Leaf Paper's double bottom line alignment, market innovation, brand awareness and blend of wholesale stability and retail upside potential as factors leading to the firm's decision to invest in the company.

"New Leaf Paper's commitment to creating win-win scenarios for its investors, its customers and clients, and the environment spoke to our investment criteria on every level," said Douglas. "We are looking forward to working with New Leaf Paper to build on its already solid DNA and help it revolutionize its category, if not the industry."

Founded in 1998 and based in San Francisco, New Leaf Paper manufactures and distributes office and printing papers made from post-consumer recycled fiber sources. The company's products include coated grades, stationery paper, offset paper, publication grades, opaque paper and copy paper.

"In a tough economy, it is a testament to our unique value proposition and pioneer status that PCV has taken a significant stake in our growth and the next chapter of our history," said Mendelsohn. "We are well on our way to reaching our target in this first and only round to date."

PCV invested $3 million and was joined by others including Partnership Capital Growth, a full-service, boutique investment bank that focuses exclusively on the healthy, active and sustainable living marketplace and served as the exclusive financial advisor for the transaction, which closed in the first quarter of 2009.

ABOUT NEW LEAF PAPER
New Leaf Paper established itself as an industry leader in 1998 and continues to inspire through the success of its environmentally leading, and economically competitive, printing, office and consumer papers. By maximizing the post-consumer content, processing chlorine free, and using renewable energy, New Leaf Paper is pioneering sustainability in the paper industry. For more information, please visit www.newleafpaper.com.

ABOUT PACIFIC COMMUNITY VENTURES, LLC
Pacific Community Ventures, LLC (PCV) is a venture and private equity investment firm focused on investing in small, high growth California businesses that bring economic benefit to low to moderate income employees and communities. PCV builds, develops and maximizes the value within these organizations for the benefit of owners, management and employees. PCV's experienced team works closely with companies, providing hands on strategic and operational guidance in addition to capital. For more information, please visit www.pcvfund.com.

New Leaf Paper

New Leaf Paper

New Leaf Paper leads the paper industry in the development and distribution of environmentally responsible printing and office papers that compete aesthetically and economically with leading virgin-fiber products. New Leaf Paper offers a selection of more than 30 coated, uncoated, and board grade papers, many made with 100% post-consumer recycled content; its inventory products are all made with electricity that is offset with Green-e® certified renewable wind energy certificates. New Leaf Paper products range from luxurious finishes to offset papers, and its customer list includes printers and designers, Fortune 100 companies and preeminent nonprofit organizations. For more information, please call New Leaf Paper at (888) 989-5323 or visit www.newleafpaper.com.

More from New Leaf Paper