2022 Fourth Quarter Highlights

• Net sales up 12% over Q4 2021, including a full quarter of Spunlace in Q4 2022

• Operating income for Airlaid Materials up 19% and Composite Fibers up 8%, compared to Q4 2021

• Spunlace delivered $3.4 million improvement in operating income over Q3 2022 • Goodwill impairment charge in Composite Fibers due to higher interest rate environment

• Lowered cash usage from working capital in Q4 largely driven by cash liberation actions

• Executed financing commitment to address upcoming €220 million term loan maturity

• 2023 Adjusted EBITDA expected to be between $110 million to $120 million by leveraging turnaround strategy

"The team is making good progress with delivering against our turnaround strategy, and we are seeing early signs of this in our fourth quarter financial results as we realized approximately $4 million in benefits from these initiatives. Excluding a one-time charge taken during the quarter, we would have been closer to the upper end of our EBITDA expectations. In addition, our cash liberation actions reduced our working capital,” said Thomas Fahnemann, President and Chief Executive Officer of Glatfelter. “As demonstrated by the improved performance of the Spunlace segment this quarter, we are making targeted operational improvements to execute more effectively in order to continue delivering the quality products our customers expect from Glatfelter, while also progressing our pricing initiatives in the Sontara product category.”

“Our focus on profitability and prudent inventory management, along with seasonal shifts in order patterns and pockets of slower demand, had an anticipated temporary impact on volumes in Airlaid Materials and Composite Fibers. All aspects of our business continued to be impacted by macroeconomic challenges related to energy and raw material inflation. However, more aggressive pricing actions to recover this inflation resulted in meaningful progress in closing the price-cost gap. Airlaid Materials achieved greater year-over-year profitability in operating income and EBITDA and Composite Fibers improved the price-cost gap but delivered slightly lower EBITDA due to the cost penalty of machine downtime to manage inventory levels. I like the progress we made in the fourth quarter and I am confident we will build on these gains in the year ahead. As we continue to advance our turnaround strategy, we remain committed to driving margin improvement and EBITDA growth by optimizing our portfolio, increasing our margins, lowering fixed costs, and improving our operations; all while managing the continued macro-economic volatility,” said Mr. Fahnemann.

One-time charges impacted Q4 results

Financial results for the fourth quarter included a one-time $3.1 million charge for a customer claim and associated costs related to a supplier's raw material defect that was identified by Glatfelter and reported to the customer thereby avoiding the impacted product from reaching the end consumer. Glatfelter proactively took the necessary steps to settle the matter directly with its customer to ensure there was no impact to ongoing business. The Company has initiated discussions with the supplier and its insurance provider to recover Glatfelter's losses related to the issue.

During the fourth quarter of 2022, the Company recorded a non-cash goodwill and asset impairment charge of $30.7 million. This charge includes a $20.3 million goodwill impairment for the Composite Fibers segment, primarily driven by higher valuation discount rates despite our expectation of improvements in future financial results compared to our forecast included in our valuation performed in Q1 2022. In addition, we recognized a $10.4 million non-cash asset impairment charge related to our OberSchmitten, Germany facility based on our expectations of future cash flows for this site. Aligned with our portfolio optimization plan, we are currently evaluating strategic alternatives for this facility.