Exhibit 99.1

KAPSTONE MORE THAN DOUBLES YEAR OVER YEAR EARNINGS ON REVENUE GROWTH AND IMPROVED OPERATIONS

NORTHBROOK, IL — August 3, 2011 — KapStone Paper and Packaging Corporation (NYSE: KS) today reported record results for the second quarter ended June 30, 2011.

·                  Net sales of $215 million, up $16 million or 8 percent, versus 2010

·                  Average revenue per ton of $633, up $48 or 8 percent, versus 2010

·                  Diluted EPS of $0.38,  up $0.23 or 153 percent, versus 2010

·                  Adjusted EBITDA of $44 million, up $19 million or 76 percent, versus Q2 2010

Roger W. Stone, Chairman and Chief Executive Officer, stated, “Record net sales of $215 million and record adjusted EBITDA of $44 million demonstrate the growing success of KapStone.  Sales benefited from price increases on two product lines partially implemented in the second quarter that should be fully realized in the third quarter. Our mills had an excellent quarter and achieved a new average daily production record of 3,600 tons.  Increased productivity coupled with cost savings initiatives reduced our cost per ton by $15 compared to a year ago.”

Second Quarter Operating Highlights

Record net sales for the quarter ended June 30, 2011 of $214.8 million were up $15.7 million over the same period a year ago.  The increase in net sales was driven by $15.8 million of higher average selling prices, $2.0 million from increased volume, and $1.9 million from favorable exchange rates. A less favorable product mix reduced sales by $1.9 million reflecting lower percentages of DuraSorb® and kraft paper sales.

Operating income of $30.6 million for the 2011 quarter increased by $18.1 million compared to the 2010 quarter primarily on $15.8 million of higher average selling prices, $4.8 million of productivity gains, $1.9 million due to favorable exchange rates and $0.8 million of lower stock compensation expenses.  Higher depreciation and amortization of $1.7 million, less favorable

1

product mix of $1.3 million and inflation of $0.9 million, primarily on freight and chemical costs, partially offset the gains.

Interest expense of $0.6 million for the second quarter of 2011 decreased by $0.2 million over the comparable quarter in 2010 and reflected lower debt levels. At June 30, 2011, the interest rate on the majority of the Company’s debt is 1.69 percent.

The effective tax rate for the 2011 second quarter was 38.6 percent compared to 33.7 percent for the 2010 second quarter. The 2011 effective tax rate is higher due to a lower expected benefit from the domestic manufacturing deduction. The 2010 effective tax rate included a benefit from a discrete adjustment related to a refundable tax credit from the inorganic content of black liquor.

For income tax purposes, the Company has taken the position that the alternative fuel mixture tax credit is not taxable as it is similar to an excise tax refund. Since the Internal Revenue Service (“IRS”) has issued no specific guidance in this area, the Company has recorded a $68 million liability for an unrecognized tax benefit. The IRS’s examination of the Company’s 2007-2009 tax returns is ongoing.

Cash Flow and Working Capital

Cash and cash equivalents increased by $27.3 million to $49.8 million as of June 30, 2011, reflecting $40.6 million provided by operating activities offset by $8.2 million used in investing activities and $5.1 million used in financing activities.

Total debt outstanding as of June 30, 2011, was $106.5 million and was reduced by $5.3 million during the second quarter of 2011.

At June 30, 2011, the Company had approximately $110.6 million of working capital and $88.6 million of revolver borrowing capacity.

Conclusion

In summary, Stone commented, “As we enter the second half of the year, we believe that KapStone will benefit from the realizations of our announced price increases.  We will continue to pursue operational excellence.  Our backlogs remain at healthy levels.”

Conference Call

KapStone will host a conference call at 11 a.m. ET, Thursday, August 4, 2011, to discuss the Company’s financial results for the 2011 second quarter.  All interested parties are invited to listen and may do so by either accessing a simultaneous broadcast webcast on KapStone’s website, http://www.kapstonepaper.com, or for those unable to access the webcast, the following dial-in numbers are available:

Domestic: 800.299.0148

International: 617.801.9711

Participant Passcode: 39430804

2

A presentation to be viewed in conjunction with the call will also be available on our website, http://www.kapstonepaper.com, in the “Investors” section.

The webcast is also being distributed through the Thomson StreetEvents Network.  Individual investors can listen to the call at http://earnings.com, Thomson’s individual investor portal, powered by StreetEvents.  Institutional investors can access the call via Thomson StreetEvents (http://streetevents.com) a password-protected event management site.

Replay of the webcast will be available for 30 days on the Company’s website following the call.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper products and linerboard.   The Company is the parent company of KapStone Kraft Paper Corporation which includes paper mills in Roanoke Rapids, NC and North Charleston, SC, a lumber mill in Summerville, SC, and five chip mills in South Carolina.  The business employs approximately 1,600 people.

Non-GAAP Financial Measures

In addition to our audited consolidated financial statements presented in accordance with U.S. GAAP, management uses certain non-GAAP measures, including “EBITDA”, “Adjusted EBITDA”, “Adjusted Net Income”, and “Adjusted Diluted EPS” to measure our operating performance.  Investors are cautioned that EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS are not financial measures under U.S. GAAP.  Management uses these measures to focus on the on-going operations, and believes that they are useful to investors because they enable them to perform meaningful comparisons of past and present operating results. The Company believes that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency to key measures used to evaluate the performance and liquidity of the Company.  Management uses EBITDA for evaluating the Company’s performance against competitors and as a primary measure for employees’ incentive programs.  Reconciliations of net income to EBITDA, EBITDA to Adjusted EBITDA, net income to Adjusted Net Income, and diluted EPS to Adjusted Diluted EPS are included in the financial schedules contained in this press release.  In addition, these measures should not be construed as alternatives to any other measures of performance determined in accordance with GAAP.

Forward-Looking Statements

Statements in this news release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by words such as “may,” “will,” “should,” “would,’ “expect,” “project,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “outlook,” or “continue,” the negative of these terms or other similar expressions.   These statements reflect management’s current views and are subject to risks, uncertainties and assumptions, many of which are beyond the Company’s control that could cause actual results to differ materially from those expressed or

3

implied in these statements. Factors that could cause actual results to differ materially include, but are not limited to: (1) industry conditions, including changes in cost, competition, changes in the Company’s product mix and demand and pricing for the Company’s products; (2) market and economic factors, including changes in raw material and healthcare costs, exchange rates and interest rates; (3) results of legal proceedings and compliance costs, including unanticipated expenditures related to the cost of compliance with environmental and other governmental regulations; (4) the ability to achieve and effectively manage growth; (5) the ability to pay the Company’s debt obligations; and (6) the ability to carry out the Company’s strategic initiatives and manage associated costs.  Further information on these and other risks and uncertainties is provided under Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 and elsewhere in reports that the Company files or furnishes with the SEC. These filings can be found on KapStone’s Web site at www.kapstonepaper.com and the SEC’s Web site at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and the Company disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.

4

KapStone Paper and Packaging Corporation

Consolidated Statements of Income

(In thousands, except share and per share amounts)

(unaudited)

KapStone Paper and Packaging Corporation

Consolidated Balance Sheets

(In thousands)

KapStone Paper and Packaging Corporation

Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

KapStone Paper and Packaging Corporation

Supplemental Information

GAAP to Non-GAAP Reconciliations

($ in thousands, except share and per share amounts)

(unaudited)