EX-99.1

Glatfelter Reports Record Quarterly Sales and 56% Increase in Specialty Papers’ Operating Income

York, PA, November 4, 2008: Glatfelter (NYSE: GLT) today reported record quarterly net sales of $339.8 million for the third quarter ended September 30, 2008, a 16.4% increase compared with $291.9 million for the third quarter of 2007.

Adjusted earnings for the third quarter of 2008 totaled $19.5 million, or $0.43 per diluted share. The comparable amounts for the third quarter of 2007 were $19.0 million and $0.42 per diluted share, which included a $0.12 per share benefit from the revaluation of deferred taxes as a result of a reduction in the German corporate income tax rate. Net income on a GAAP-basis for the 2008 third quarter was $21.7 million, or $0.47 per diluted share, compared with net income of $7.8 million, or $0.17 per diluted share, for the same quarter of last year.

Third quarter 2008 net income benefited from $2.4 million in gains from timberland sales which were partially offset by $0.2 million in acquisition integration costs, each after taxes. Third quarter 2007 net income included a $12.3 million charge to increase the Company’s reserve for the environmental matter at the Fox River, $0.3 million of acquisition integration costs as well as $1.4 million in gains from the sale of timberlands, all of which are after tax amounts. Adjusted earnings is a non-GAAP measure that excludes from the Company’s GAAP-based results certain non-core business items. For a reconciliation of adjusted earnings to GAAP earnings, refer to the tabular presentation at the end of this release.

”I am very pleased with this quarter’s strong financial results,” said George H. Glatfelter II, Chairman and Chief Executive Officer. “Our performance was driven by strong demand, improved selling prices and, most importantly, ongoing operational improvement. In this regard, our results continued to reflect the solid execution of our strategies within each business unit and our emphasis on improving cost management and asset utilization. The benefits from these initiatives were most evident at our Chillicothe facility, which contributed to a 56% increase to Specialty Papers’ operating income compared to the third quarter of 2007.”

Specialty Papers’ net sales increased $18.1 million, or 8.7%, compared to the third quarter of 2007 due to higher average selling prices together with strong shipping volumes that increased 5% primarily in the envelope and engineered products markets. Higher average selling prices contributed $12.5 million to Specialty Papers’ revenue increase during the third quarter of 2008.

These factors were partially offset by higher prices for energy and raw materials totaling $13.2 million. Cost reduction and productivity improvement initiatives generated a $7.2 million benefit during the quarter. As a result, operating income increased $8.2 million, or 56%, during the third quarter of 2008 compared to 2007.

Net sales in the Composite Fibers business unit increased $29.8 million, or 35.5% and operating income was up 2%, in the comparison. Net sales increased primarily due to the November 2007 Caerphilly acquisition, a 10.6% increase in shipments of food and beverage products and higher selling prices. On a constant currency basis, higher average selling prices contributed $6.5 million to operating income in the third quarter 2008 and the translation of foreign currencies benefited net sales by $5.5 million. The cost of raw materials, primarily pulp and energy, was $6.2 million higher than a year ago.

Operating income for the third quarter 2008 increased slightly compared to a year ago. However, the 2008 third quarter’s results included $0.7 million of accelerated depreciation recorded on paper machine components to be replaced in connection with the previously announced $38 million machine rebuild to be completed in late 2009 and the third quarter 2007 results benefited from $1.4 million in non-recurring energy tax credits and an insurance recovery. On a comparable basis operating income increased $2.3 million, or 33%.

Selling, general and administrative (“SG&A”) expenses decreased by $17.4 million in the quarter-to-quarter comparison and totaled $24.8 million in the third quarter of 2008. The decrease was largely due to a $20.0 million charge recorded in the third quarter of 2007 to increase the Company’s reserve for the environmental matter at the Fox River. In the quarter-to-quarter comparison, excluding this charge, SG&A increased $2.6 million primarily due to the inclusion of the Caerphilly acquisition and currency translation adjustments.

Interest expense in the third quarter of 2008 totaled $5.7 million, a decline of $1.9 million compared with the same quarter of 2007. The decrease in interest expense was due to lower debt outstanding together with a lower interest rate environment.

For the third quarter of 2008, the Company’s effective tax rate on adjusted earnings was 31% compared with 27% on adjusted earnings in the same quarter of 2007, before giving effect to the tax benefit recorded in connection with the change in the German corporate income tax rate.

For the first nine months of 2008, the Company’s net income totaled $44.5 million or $0.97 per diluted share, compared to net income of $13.1 million or $0.29 per diluted share in the same period of 2007. The year-to-date results for 2008 includes $11.0 million in gains from the sale of timberlands, and a $0.5 million benefit from the reversal of a reserve associated with the 2006 shutdown of the Company’s Neenah facility, partially offset by $0.8 million in acquisition integration costs, all after taxes. Reported results for the first nine months of 2007 included, all on an after-tax basis, $6.8 million in gains from the sale of timberlands, a $16.0 million charge for the Fox River environmental matter and $1.5 million in acquisition integration costs and shutdown and restructuring charges.

In the Specialty Papers business unit, the Company expects softening demand in the fourth quarter due primarily to normal seasonality and, to a lesser extent, overall economic conditions. As a result, shipments during the fourth quarter are expected to be slightly lower than the same period of 2007. Costs are expected to moderate slightly in the fourth quarter, driven by cost reductions in oil and other commodities. However, the expiration of certain raw material contracts at the end of 2008 is expected to negatively impact production costs in the upcoming year.

Within the Composite Fibers business unit, the Company expects a continuation of strong demand for food and beverage and technical specialty products. The Company anticipates fiber costs in this business unit to decline slightly. Other input costs, including natural gas and other costs tied to the energy markets, are expected to remain at present levels into the second quarter of 2009 due to supply agreements that are currently in place.

Mr. Glatfelter commented, “The strong performance we are delivering, growth opportunities in our Composite Fibers business unit and our proven ability to successfully execute our strategies give us confidence in our business. However, like others, we are not immune to the impact of the current economic environment. We will continue to focus on supply-side market discipline, solid business execution and aggressive cost control. These activities remain top priorities for the entire business as we look forward to the fourth quarter and into 2009.”

As previously announced, the Company will hold a conference call today at 11:00AM (Eastern) to discuss its third-quarter results. During the conference call, management will be referring to a slide presentation to supplement their prepared remarks. This presentation is available on the Company’s Investor Relations web page as well as through the webcast discussed below.

Interested persons who wish to hear the live webcast should go to the Company’s Investor Relations web page at http://www.glatfelter.com/about_us/investor_relations/default.aspx prior to the starting time to register, download and install any necessary audio software.

You may also participate by calling 888-335-5539 within the US and 973-582-2857 internationally (conference ID 67651513) at 10:55 AM (Eastern) on November 4, 2008. A taped replay of the conference call will be available within two hours of the conclusion of the call and until November 18, 2008. To access the taped replay, call 800-642-1687 within the US and 706-645-9291 internationally and enter conference ID 67651513.

Any statements included in this press release which pertain to future financial and business performance, conditions and strategies and other financial and business matters, are “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to numerous risks, uncertainties and other unpredictable or uncontrollable factors which may cause actual results or performance to differ materially from the Company’s expectations. Various risks and factors that could cause future results to differ materially from those expressed in the forward-looking statements include, but are not limited to: changes in industry, business, market, political and economic conditions in the U.S. and in other countries in which Glatfelter currently does business, demand for or pricing of its products; changes in tax legislation, governmental laws, regulations and policies and actions of regulatory bodies; orderly execution of regularly scheduled maintenance outages; technological changes and innovations and other factors. In light of these risks, uncertainties and other factors, the forward-looking events discussed in this press release may not occur and readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements speak only as of the date of this press release and Glatfelter undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release. More information about these factors is contained in Glatfelter’s filings with the U.S. Securities and Exchange Commission, which are available at www.glatfelter.com.

Headquartered in York, PA, Glatfelter is a global manufacturer of specialty papers and engineered products, offering over a century of experience, technical expertise and world-class service. U.S. operations include facilities in Spring Grove, PA and Chillicothe and Fremont, OH. International operations include facilities in Germany, France, the United Kingdom and the Philippines and a representative office in China. Glatfelter’s sales exceed $1 billion annually and its common stock is traded on the New York Stock Exchange under the ticker symbol GLT. Additional information may be found at www.glatfelter.com.

P. H. Glatfelter Company and subsidiaries
Consolidated Statements of Income
(unaudited)


	Three Months Ended						Nine Months Ended September
	September 30						30
In thousands, except per share	2008			2007			2008			2007
Net sales	$	339,822		$	291,859		$	965,545		$	860,939
Energy sales – net		2,885			2,491			7,612			7,129

Total revenues		342,707			294,350			973,157			868,068
Costs of products sold		285,535			247,470			839,329			755,679

Gross profit		57,172			46,880			133,828			112,389
Selling, general and administrative expenses		24,802			42,197			74,314			94,700
Shutdown and restructuring charges		—			–			(856	)		162
Gains on dispositions of plant, equipment and timberlands, net		(3,975	)		(2,301	)		(18,477	)		(11,188	)

Operating income		36,345			6,984			78,847			28,715
Nonoperating income (expense)
Interest expense		(5,654	)		(7,569	)		(17,626	)		(22,330	)
Interest income		1,170			979			4,131			2,568
Other – net		146			113			317			380

Total other income (expense)		(4,338	)		(6,477	)		(13,178	)		(19,382	)

Income before income taxes		32,007			507			65,669			9,333
Income tax provision		10,345			(7,305	)		21,176			(3,730	)

Net income	$	21,662		$	7,812		$	44,493		$	13,063

Weighted average shares outstanding
Basic		45,279			45,084			45,221			45,004
Diluted		45,650			45,364			45,669			45,365
Earnings Per Share
Basic	$	0.48		$	0.17		$	0.98		$	0.29
Diluted		0.47			0.17			0.97			0.29


Three months ended September 30
In thousands	Specialty Papers				Composite Fibers				Other and Unallocated						Total
	2008		2007		2008		2007		2008			2007			2008			2007
Net sales	$	226,028	$	207,894	$	113,794	$	83,965	$	—		$	–		$	339,822		$	291,859
Energy sales, net		2,885		2,491		—		–		—			–			2,885			2,491

Total revenue		228,913		210,385		113,794		83,965		—			–			342,707			294,350
Cost of products sold		192,110		180,739		96,114		68,327		(2,689	)		(1,596	)		285,535			247,470

Gross profit		36,803		29,646		17,680		15,638		2,689			1,596			57,172			46,880
SG&A		13,961		14,988		9,329		7,452		1,512			19,757			24,802			42,197
Gains on dispositions of plant, equipment and timberlands		—		–		—		–		(3,975	)		(2,301	)		(3,975	)		(2,301	)

Total operating income (loss)		22,842		14,658		8,351		8,186		5,152			(15,860	)		36,345			6,984
Non-operating income (expense)		—		–		—		–		(4,338	)		(6,477	)		(4,338	)		(6,477	)

Income (loss) before income taxes	$	22,842	$	14,658	$	8,351	$	8,186	$	814		$	(22,337	)	$	32,007		$	507

Supplementary Data
Net tons sold		200,072		190,505		21,530		17,823		—			–			221,602			208,328
Depreciation expense	$	9,007	$	9,084	$	6,700	$	5,345	$	–		$	–		$	15,707		$	14,429
Capital expenditures		4,156		3,269		11,275		1,798		—			–			15,431			5,067


Nine months ended September 30
In thousands	Specialty Papers				Composite Fibers				Other and Unallocated						Total
	2008		2007		2008		2007		2008			2007			2008			2007
Net sales	$	634,270	$	607,404	$	331,274	$	253,535	$	1			–		$	965,545		$	860,939
Energy sales, net		7,612		7,129		—		–		—			–			7,612			7,129

Total revenue		641,882		614,533		331,274		253,535		1			–			973,157			868,068
Cost of products sold		566,334		551,476		280,972		209,639		(7,977	)		(5,436	)		839,329			755,679

Gross profit		75,548		63,057		50,302		43,896		7,978			5,436			133,828			112,389
SG&A		41,940		44,036		29,038		23,946		3,336			26,718			74,314			94,700
Shutdown and restructuring charges		—		–		—		–		(856	)		162			(856	)		162
Gains on dispositions of plant, equipment and timberlands		—		–				–		(18,477	)		(11,188	)		(18,477	)		(11,188	)

Total operating income		33,608		19,021		21,264		19,950		23,975			(10,256	)		78,847			28,715
Nonoperating income (expense)		—		–		—		–		(13,178	)		(19,382	)		(13,178	)		(19,382	)

Income (loss) before income taxes	$	33,608	$	19,021	$	21,264	$	19,950	$	10,797		$	(29,638	)	$	65,669		$	9,333

Supplementary Data
Net tons sold		564,983		548,969		65,225		54,298		—			–			630,208			603,267
Depreciation expense	$	26,619	$	26,615	$	19,755	$	15,678		—			–		$	46,374		$	42,293
Capital expenditures		14,586		14,078		26,253		5,211		—			—			40,839			19,289


	Nine months ended September 30
In thousands	2008			2007
Cash Flow Data
Cash provided (used) by:
Operating activities	$	17,759		$	57,763
Investing activities		(21,559	)		(7,190	)
Financing activities		(9,344	)		(56,199	)
Depreciation, depletion and amortization		46,374			42,293
Capital expenditures		40,839			19,289
	September 30,			December 31, 2007
		2008			—

Balance Sheet Data
Cash and cash equivalents	$	15,947		$	29,833
Total assets		1,313,598			1,287,067
Total debt		314,090			313,185
Shareholders’ equity		499,579			476,068

Reconciliation of GAAP Financial Information to Non-GAAP Financial Information

This press release includes a discussion of earnings before the effects of certain specifically identified items, which is referred to as adjusted earnings, a non-GAAP measure. The Company uses non-GAAP adjusted earnings to supplement the understanding of its consolidated financial statements presented in accordance with GAAP. Non-GAAP adjusted earnings is meant to present the financial performance of the Company’s core papermaking operation, which consists of the production and sale of specialty papers and composite fibers papers. Management and the Company’s Board of Directors use non-GAAP adjusted earnings to evaluate the performance of the Company’s fundamental business in relation to prior periods. The performance of the Company’s papermaking operations is evaluated based upon numerous items such as tons sold, average selling prices, gross margins and overhead, among others. Gains on the sale of timberlands, charges for environmental reserves and shutdown and restructuring charges are excluded from the Company’s calculation of non-GAAP adjusted earnings because management believes each of these items is unique and not part of the Company’s core papermaking business, and will only impact the Company’s financial results for a limited period of time. Gains from timberland sales are distinct from revenues generated from paper product sales. Unlike items such as cost of raw materials and overhead costs, shutdown and restructuring costs are unique items that do not represent direct costs incurred in the manufacture and sale of the Company’s products.

Unlike net income determined in accordance with GAAP, non-GAAP adjusted earnings does not reflect all charges and gains recorded by the Company for the applicable period and, therefore, does not present a complete picture of the Company’s results of operations for the respective period. However, non-GAAP adjusted earnings provides a measure of how the Company’s core papermaking operations are performing, which management believes is useful to investors because it allows comparison of such papermaking operations from period to period.

Non-GAAP adjusted earnings should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with GAAP. The following tables set forth a reconciliation of results determined in accordance with accounting principles generally accepted in the United States of America to non-GAAP adjusted earnings discussed herein.


	Three Months Ended September 30
	2008						2007
In thousands, except per share	After tax income			Diluted EPS			After tax income			Diluted EPS

Net income	$	21,662		$	0.47		$	7,812		$	0.17
Timberland sales		(2,371	)		(0.05	)		(1,415	)		(0.03	)
Acquisition integration		240			0.01			322			0.01
Fox River reserve		–			–			12,286			0.27

Adjusted earnings	$	19,531		$	0.43		$	19,005		$	0.42


	Nine Months Ended September 30
	2008						2007
In thousands, except per share	After tax income			Diluted EPS			After tax income			Diluted EPS

Net income	$	44,493		$	0.97		$	13,063		$	0.29
Timberland sales		(11,027	)		(0.24	)		(6,815	)		(0.15	)
Shutdown and restructuring charges		(527	)		(0.01	)		109			—
Acquisition integration		828			0.02			1,472			0.03
Fox River reserve		–			–			15,979			0.35

Adjusted earnings	$	33,767		$	0.74		$	23,808		$	0.52

The sum of individual per share amounts set forth above may not agree to adjusted income per share due to rounding.


For Immediate Release	Contacts:

	Investors:	Media:
	John P. Jacunski	William T. Yanavitch
	(717) 225-2794	(717) 225-2747


	For the quarter ended Sept 30
Dollars in thousands	2008			2007			change
Net sales	$	226,028		$	207,894		$	18,134	8.7	%
Tons shipped		200,072			190,505			9,567	5.0	%
Gross margin percent		*16.3*	%		14.3	%		–	-
Operating income	$	22,842		$	14,658		$	8,184	55.8	%