The following table reconciles net loss to EBITDA and Adjusted EBITDA for the periods presented.

    Three Months Ended     Year Ended
December 31, December 31,
(Dollars in millions)   2011     2010     2011   2010
Net loss $ (67.9 )     $ (14.0 ) $ (137.1 )   $ (131.1 )
Income tax expense 0.1 0.1 0.2 0.1
Interest expense, net 31.8 31.7 126.5 128.0
Depreciation, amortization,
and depletion     31.1         30.8         125.3       127.4  
EBITDA (4.9 ) 48.6 114.9 124.4
Adjustments to EBITDA:

Loss on early extinguishment of debt, net (1)
- - 26.1 -
Goodwill impairment (2) 18.7 - 18.7 -
Restructuring and other charges (3) 24.5 - 24.5 -
Hedge losses (4) 7.5 - 7.5 -
Equity award expense (5) 0.6 0.5 2.4 1.7
Other items, net (6)     1.3         1.4         8.4       6.0  
Adjusted EBITDA before pro forma
effects of profitability program 47.7 50.5 202.5 132.1
Pro forma effects of profitability
program (7)                 68.3       55.9  
Adjusted EBITDA               $ 270.8     $ 188.0  
(1)   Represents net loss related to debt refinancing.
(2) Represents impairment of goodwill allocated to the coated and supercalendered paper segment.
(3) Represents costs associated with the shut-down of three paper machines.
(4)

Represents losses recognized due to the de-designation of certain energy-related derivative contracts.
(5) Represents amortization of non-cash incentive compensation.
(6)

Represents earnings adjustments for product development costs and other miscellaneous non-recurring items.
(7)

Represents cost savings expected to be realized as part of the Company's cost savings program.

Forward-Looking Statements

In this press release, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “project,” “plan,” “estimate,” “intend,” and similar expressions. Forward-looking statements are based on currently available business, economic, financial, and other information and reflect management’s current beliefs, expectations, and views with respect to future developments and their potential effects on Verso. Actual results could vary materially depending on risks and uncertainties that may affect Verso and its business. For a discussion of such risks and uncertainties, please refer to Verso’s filings with the Securities and Exchange Commission. Verso assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.

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