NASHUA’S OPINION IN RICOH TONER LAWSUIT

Nashua Corporation Announces Opinion and Order in Ricoh Toner Litigation

NASHUA, N.H., Aug. — Nashua Corporation

, a manufacturer and marketer of labels, thermal specialty papers

and imaging products, today announced that on August 2, 2005, the United

States District Court for the District of New Jersey issued an opinion and

order in a patent infringement lawsuit filed by Ricoh Company Ltd. et al.

against Nashua Corporation, Katun Corporation, and General Plastics Industrial

Co. The Court issued summary judgment that one of six Ricoh patents relating

to toner bottles for use in photocopy machines (U.S. Patent No. 6,075,963) was

not invalid as anticipated by certain prior art and was infringed by Nashua

Corporation (“Nashua”). In addition, the Court interpreted disputed terms of

the six patents involved in the lawsuit.

On May 30, 2003 Ricoh Company, Ltd. and affiliated companies filed a

complaint against several defendants, including the largest customer of

Nashua’s Imaging Supplies segment, Katun Corporation, and General Plastics

Industrial Co., a supplier to the Imaging Supplies segment. The complaint

alleged multiple counts of patent infringement, trademark infringement and

unfair competition by the defendants. On October 17, 2003, Ricoh amended the

complaint and added Nashua as an additional co-defendant in the suit. The

allegations arose from the sale and distribution of Ricoh compatible toner

products. In the lawsuit, Ricoh seeks, among other things, damages as a

result of alleged patent infringement, increased damages for willful

infringement, attorney’s fees, and injunctive relief. On April 12, 2005, the

District Court granted the defendants’ summary judgment motion dismissing the

counts related to trademark infringement and unfair competition.

Nashua believes that it is entitled to indemnification from Katun for

monies owed as a result of any judgment rendered against Nashua in this

litigation, including for damages, costs, attorney’s fees and interest, as

well as for monies paid to Ricoh in settlement of the Ricoh litigation,

provided that Katun has consented to the settlement. Nashua and Katun are

each responsible for their own attorney’s fees in connection with the

litigation.

Nashua previously announced that on April 1, 2005 it committed to a plan

to exit the toner and developer business, which is included in its Imaging

Supplies segment, by March 31, 2006.

Andy Albert, Chairman, President and Chief Executive Officer said: “We

are currently reviewing the Court’s opinion and evaluating its legal and

business impact.”

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, colored copier papers, bond, point

of sale, ATM and wide format papers, entertainment tickets, as well as toners,

developers, and ribbons for use in imaging devices.