Exhibit 99.1

Contact:	Tom Brooker/John Patenaude	Rich Coyle
	Nashua Corporation	Citigate Sard Verbinnen
	847-318-1797/603-880-2145	212-687-8080

NASHUA REPORTS THIRD QUARTER 2006 RESULTS

     NASHUA, N.H., November 2, 2006 — Nashua Corporation (NASDAQ: NSHA), a manufacturer and marketer of labels, thermal specialty papers and imaging products, today announced financial results for the third quarter ended September 29, 2006.

     Net sales for the third quarter of 2006 were $69.5 million, compared to $68.6 million for the third quarter of 2005. Gross margin for the third quarter of 2006 was $10.7 million, or 15.4%, compared to $11.8 million, or 17.3%, for the third quarter of 2005. Pre-tax loss from continuing operations for the third quarter of 2006 was $1.8 million compared to pre-tax income of $1.3 million for the third quarter of 2005. Loss from continuing operations for the third quarter of 2006 was $1.2 million, or $0.20 per share, compared to income from continuing operations of $0.8 million, or $0.14 per share, in the third quarter of 2005. Net loss for the third quarter of 2006 was $1.2 million, or $0.19 per share, compared to net income of $0.8 million, or $0.14 per share, in the third quarter of 2005. Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $0.3 million for the third quarter of 2006, compared to $3.3 million for the third quarter of 2005.

     The results for the third quarter of 2006 included the curtailment loss of $939,000 related to the freezing of pension benefits for certain hourly employees which is partially offset by the curtailment gain of $203,000 associated with the cessation of postretirement benefits for the same active hourly employees. The results for the third quarter of 2006 also include severance charges of $740,000. Nashua did not record any curtailment losses or gain or severance charges during the third quarter of 2005.

     Net sales for the nine months ended September 29, 2006 were $199.8 million, compared to $203.5 million for the nine months ended September 30, 2005. Gross margin for the nine months ended September 29, 2006 was $30.0 million, or 15.0%, compared to $33.7 million, or 16.6%, for the nine months ended September 30, 2005. Pre-tax loss from continuing operations for the nine months ended September 29, 2006 was $4.4 million, compared to pre-tax income of $1.2 million for the nine months ended September 30, 2005. Loss from continuing operations for the first nine months of 2006 was $2.8 million, or $0.45 per share, compared to income from continuing operations of $0.7 million, or $0.12 per share, in the first nine months of 2005. The results for the nine months ended September 29, 2006 also include income from discontinued operations of $1.1 million. Net loss for the nine months ended September 29, 2006 was $1.7 million, or $0.28 per share, compared to $0.6 million, or $0.10 per share, for the nine months ended September 30, 2005. EBITDA from continuing operations was $1.4 million for the nine months ended September 29, 2006, compared to $7.3 million for the same period in 2005.

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     Commenting on the results for the quarter, Tom Brooker, President and Chief Executive Officer, stated, “The results for the quarter include special charges related to the freezing of pension benefits, the elimination of postretirement benefits and severance charges related to changes and reductions in the Company’s management structure. The freezing of the pension and postretirement benefits should provide a positive impact on the Company’s cost and risk structure as we move forward. The management changes provide an opportunity to refocus our efforts for top line growth as we align our sales force to serve specific geographic markets for our Label and Converted Paper Products businesses. We also intend to hire additional sales staff in the coming months in order to drive revenue growth and thereby increase factory utilization and enhance the Company’s performance.”

     Brooker continued, “Our previously announced cash generation program continues to make progress as we work to monetize the New Hampshire real estate. We expect to close the sale of the Nashua real estate in the fourth quarter. We continue to negotiate a purchase and sale agreement on the 48-acre Merrimack campus.”

Business Segment Highlights

     Nashua’s Label Products segment, which prints and converts product for the grocery, food service, retail, transportation, entertainment, and general industrial markets, reported net sales for the third quarter of 2006 of $28.2 million, gross margin of $4.7 million, or 16.5%, and pre-tax income of $1.4 million. Net sales for the third quarter of 2005 were $26.8 million, gross margin was $4.2 million, or 15.5%, and pre-tax income was $1.4 million.

     “Sales in the Label segment increased 5.3% over the same quarter for last year, and margins increased during the quarter as we completed our plant consolidation initiative which we initiated in the fourth quarter of 2005,” Brooker said. “The margin for the quarter was impacted negatively as we incurred approximately $160,000 of cost relative to the shutdown of the St. Louis, Missouri facility.”

     Brooker continued, “The pre-tax income for the quarter was negatively impacted by approximately $344,000 of severance cost and cost related to the settlement of litigation. The Label segment continues to provide the Company with excellent growth opportunities. By increasing our sales staff, we will add focus on opportunities which strategically fit our manufacturing capabilities.”

     The Company’s Specialty Paper Products segment, which includes the paper coating and converting businesses, reported net sales in the third quarter of 2006 of $41.5 million, gross margin of $6.1 million, or 14.6%, and a pre-tax loss of $717,000. Excluding the curtailment expense related to retirement plans of $733,000, pre-tax income was $16,000. Net sales in the third quarter of 2005 were $42.2 million, gross margin was $7.7 million, or 18.2%, and pre-tax income was $1.9 million.

     “Sales for the paper segment declined slightly, primarily due to our exit from the coated carbonless business in the first quarter of 2006,” Brooker said. “Sales of wide format product into the architectural and engineering markets have increased approximately 10% over the third quarter of last year. Margins for the segment declined as a result of lower volumes resulting in the lower absorption of fixed cost. This was due in part to the start up of the wide format manufacturing facility in New Jersey. Pre-tax profit was impacted by $396,000 of severance cost associated with organizational changes.”

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     Brooker continued, “Our focus relative to the Specialty Paper segment is similar to that for the Label segment in that we are integrating the sales force for our label and converted paper products. The increase in the size of the sales force will provide us with opportunities to gain incremental business and better utilize our current capacity. During the third quarter, we completed negotiations with certain union employees in our New Hampshire facilities, which will provide the Company with a basis to remain competitive in the coated products arena. With these negotiations behind us and consolidation of our manufacturing space in Merrimack, New Hampshire completed, we are now positioned to aggressively pursue market opportunities for our paper coating operations.”

     Brooker concluded, “The liquidation of the Toner business and potential monetization of the New Hampshire real estate place Nashua Corporation in a sound financial position. With our manufacturing capacity properly rationalized, our objective now is to expand and effectively deploy our sales force to generate top line growth by pursuing and securing new business at attractive rates of profitability. We intend for Nashua’s core businesses to generate top line growth and markedly improved operating results.”

Use of Non-GAAP Measures

     EBITDA is presented as supplemental information that management of Nashua Corporation believes may be useful to some investors in evaluating the Company because it is widely used as a measure of evaluating a company’s operating performance, as well as to evaluate its operating cash flow. EBITDA is used by management in the computation of ratios utilized for financing purposes and for planning and forecasting in future periods. EBITDA is calculated by adding net interest expense, income tax expense, depreciation and amortization back into net income. EBITDA should not be considered a substitute either for net income, as an indicator of Nashua’s operating performance, or for cash flow, as a measure of Nashua’s liquidity. In addition, because all companies may not calculate EBITDA in exactly the same manner, the presentation here may not be comparable to other similarly titled measures of other companies.

     Non-GAAP adjusted pre-tax income is provided as supplemental information that management of Nashua Corporation believes may be useful to some investors in evaluating the Company because of the one-time events and cost which may not truly reflect the Company’s operating performance. Non-GAAP adjusted pre-tax income is calculated by adding back special costs, which include accelerated depreciation, severance and pension curtailment costs associated with the exit of the Toner business. Non-GAAP adjusted pre-tax income also adjusts income for one-time interest income and a one-time gain from the annuitization of death benefits. Non-GAAP adjusted income should not be considered a substitute either for net income, as an indicator of Nashua’s financial performance, or for cash flow, as a measure of Nashua’s liquidity.

About Nashua

     Nashua Corporation manufactures and markets a wide variety of specialty imaging products and services to industrial and commercial customers to meet various print application needs. The Company’s products include thermal coated papers, pressure-sensitive labels, bond, point of sale, ATM and wide format papers, entertainment tickets, and ribbons for use in imaging devices. Additional information about Nashua Corporation can be found at www.nashua.com.

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Forward-looking Statements

     This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including earnings, revenue and profitability projections. When used in this press release, the words “should,” “expects” “will,” “plans,” and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, the Company’s future capital needs and resources, fluctuations in customer demand, intensity of competition from other vendors, timing and acceptance of new product introductions, delays or difficulties in programs designed to increase sales and profitability, general economic and industry conditions, the resolution of certain litigation matters and other risks set forth in the Company’s filings with the Securities and Exchange Commission, and the information set forth herein should be read in light of such risks. In addition, any forward-looking statements represent the Company’s estimates only as of the date of this press release and should not be relied upon as representing the Company’s estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, even if its estimates change.

Third Quarter 2006 Earnings Results

NASHUA CORPORATION SUMMARY RESULTS OF OPERATIONS

Periods ended September 29, and September 30, respectively	Three Months						Nine Months
Dollars in thousands, except per share amounts (Unaudited)	2006			2005			2006			2005
Net sales	$	69,487		$	68,570		$	199,756		$	203,524
Cost of products sold		58,772			56,740			169,795			169,830
Gross margin	$	10,715		$	11,830		$	29,961		$	33,694
Gross margin %		15.4	%		17.3	%		15.0	%		16.6	%
Selling, distribution and administrative expenses		11,281			10,221			32,597			31,663
Research and development expenses		128			71			522			420
Loss from equity investment		71			—			190			—
Interest expense, net		620			465			1,221			1,290
Other income (1)		(286	)		(260	)		(944	)		(839	)
Net loss on curtailment of postretirement plans (2)		733			—			733			—
Income (loss) from continuing operations before income taxes (benefit)		(1,832	)		1,333			(4,358	)		1,160
Income tax provision (benefit)		(619	)		508			(1,600	)		447
Income (loss) from continuing operations		(1,213	)		825			(2,758	)		713
Income (loss) from discontinued operations, net of taxes  (3)		54			18			1,058			(86	)
Net income (loss)	$	(1,159	)	$	843		$	(1,700	)	$	627
Earnings per share:
Income (loss) from continuing operations	$	(0.20	)	$	0.14		$	(0.45	)	$	0.12
Income (loss) from discontinued operations		0.01			—			0.17			(0.02	)
Net income (loss) per common share	$	(0.19	)	$	0.14		$	(0.28	)	$	0.10
Average common shares		6,146			6,089			6,133			6,084
Income (loss) per common share from continuing operations assuming dilution	$	(0.20	)	$	0.13		$	(0.45	)	$	0.12
Income (loss) per common share from discontinued operations assuming dilution		0.01			0.01			0.17			(0.02	)
Net income (loss) per common share assuming dilution	$	(0.19	)	$	0.14		$	(0.28	)	$	0.10
Average common and potential common shares		6,146			6,181			6,133			6,200

(1)	Other income for the three and nine months ended September 29, 2006 and September 30, 2005 represents income from the rental of unused warehouse space at our New Hampshire facilities.
(2)	Net loss on curtailment of postretirement plans for the three and nine months ended September 29, 2006 represents a loss of $0.9 million related to the curtailment of pension benefits for certain hourly employees included in our Specialty Paper Products segment which more than offset a gain of $0.2 million related to the curtailment of postretirement medical and life insurance benefits.
(3)	Income from discontinued operations for the nine months ended September 29, 2006 includes the results of our Toner and Developer business which we exited effective March 31, 2006 and income from the liquidation of our Photo UK entity. Income from discontinued operations for the three months ended September 30, 2005 represents the results of our Toner and Developer business. Income from discontinued operations for the nine months ended September 30, 2005 represents the results of our Toner and Developer business and a $1.2 million tax benefit related to the settlement of outstanding Internal Revenue Service audit from the years 1995-2000.

Third Quarter 2006 Earnings Results

NASHUA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	September 29			December 31
Dollars in thousands	2006			2005
Assets
Cash and cash equivalents	$	310		$	653
Accounts receivable		29,624			33,922
Inventories		22,815			22,284
Assets held for sale		54			—
Other current assets		4,095			2,980
Total current assets		56,898			59,839
Plant and equipment, net		32,205			36,462
Goodwill, net of amortization		31,516			31,516
Intangibles, net of amortization		1,333			1,773
Other assets		16,561			15,329
Total assets	$	138,513		$	144,919
Liabilities and Shareholders’ Equity
Accounts payable	$	20,821		$	14,992
Accrued expenses		7,806			8,965
Current maturities of long-term debt		—			3,500
Current maturities of notes payable		83			333
Total current liabilities		28,710			27,790
Long-term debt		19,400			25,250
Notes payable		306			368
Other long-term liabilities		37,836			37,777
Total long-term liabilities		57,542			63,395
Common stock and additional capital		22,250			22,023
Retained earnings		56,160			57,860
Accumulated other comprehensive loss:
Minimum pension liability adjustment(a)		(26,149	)		(26,149	)
Total shareholders’ equity		52,261			53,734
Total liabilities and shareholders’ equity	$	138,513		$	144,919

^(a) Our minimum pension liability adjustment represents an increase in our minimum pension liability resulting from a change in the discount rate and mortality table used in computing pension liability.

Third Quarter 2006 Earnings Results

NASHUA CORPORATION
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO EARNINGS BEFORE
INTEREST, TAXES, DEPRECIATION AND AMORTIZATION

Periods ended September 29, and September 30, respectively	Three Months					Nine Months
In thousands (Unaudited)	2006			2005		2006			2005
Net income/(loss) from continuing operations	$	(1,213	)	$	825	$	(2,758	)	$	713
Add back:
Interest expense, net		620			465		1,221			1,290
Income tax provision (benefit)		(619	)		508		(1,600	)		447
Depreciation on fixed assets		1,338			1,461		4,077			4,563
Amortization of intangible assets		163			80		491			303
Earnings from continuing operations before interest, taxes, depreciation and amortization	$	289		$	3,339	$	1,431		$	7,316

Third Quarter 2006 Earnings Results

NASHUA CORPORATION SELECTED FINANCIAL DATA

Periods ended September 29, and September 30, respectively	Three Months						Nine Months
Dollars in thousands (Unaudited)	2006			2005			2006			2005
NET SALES
Label Products	$	28,196		$	26,760		$	81,178		$	79,682
Specialty Paper Products		41,549			42,230			120,503			125,895
All Other		663			431			2,151			1,256
Reconciling Items:
Eliminations		(921	)		(851	)		(4,076	)		(3,309	)
Net sales	$	69,487		$	68,570		$	199,756		$	203,524
PRETAX INCOME (LOSS)
Label Products	$	1,399		$	1,403		$	2,688		$	3,749
Specialty Paper Products		(717	)		1,900			(346	)		3,662
All Other		(14	)		18			238			87
Reconciling Items:
Unallocated corporate expenses		(1,880	)		(1,523	)		(5,717	)		(5,048	)
Interest expense, net		(620	)		(465	)		(1,221	)		(1,290	)
Total pretax income (loss) from continuing operations	$	(1,832	)	$	1,333		$	(4,358	)	$	1,160
DEPRECIATION AND AMORTIZATION
Label Products	$	641		$	671		$	2,020		$	2,010
Specialty Paper Products		762			755			2,256			2,513
Reconciling Item:
Corporate		98			115			292			343
Total depreciation and amortization	$	1,501		$	1,541		$	4,568		$	4,866
INVESTMENT IN PLANT AND EQUIPMENT
Label Products	$	322		$	189		$	674		$	926
Specialty Paper Products		348			493			1,598			2,388
Reconciling Item:
Corporate		49			5			123			71
Total Investment in plant and equipment	$	719		$	687		$	2,395		$	3,385
PENSION AND POSTRETIREMENT EXPENSE
Label Products	$	252		$	161		$	856		$	483
Specialty Paper Products		244			138			731			414
Reconciling Item:
Corporate		291			68			804			158
Total pension and postretirement expense	$	787		$	367		$	2,391		$	1,055