Nashua Corporation Settles Patent Lawsuit

12 October 2005

Nashua Corporation (NASDAQ: NSHA), a
manufacturer and marketer of labels, thermal and specialty papers, and
imaging products, today announced that it and Océ Printing Systems GmbH
("Océ") have mutually agreed to settle patent infringement litigation in
which Océ alleged infringement of U.S. Patent No. 4,990,964 by the Nashua
ST-2140 and ST-466 toner containers. Nashua denied infringement and
alleged that the '964 patent was invalid. Nashua Corporation will no
longer offer or sell the ST-2140 and ST-466 toner containers. Pursuant to
the settlement, the parties have requested that the U.S. District Court for
the Northern District of Illinois dismiss the lawsuit.

Nashua Corporation previously had determined that its Toner business was
non-strategic, and on April 5, 2005 had announced its decision to exit the
Toner business in order to focus resources on opportunities available in
its core operations.

"Settling the Océ litigation is a positive development for Nashua as it
resolves an issue that has occupied management time and attention," said
Andrew Albert, Chairman, President and Chief Executive Officer of Nashua
Corporation.

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.
Additional information about Nashua Corporation can be found at:
www.nashua.com.

Forward-looking Statements

This press release contains forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995. When used
in this press release, the words "plan," "should," "will," "expects,"
"anticipates" 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 settlement of various tax
issues, 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.

Contact:
Andy Albert/John Patenaude
Nashua Corporation
603-880-2206/603-880-2145
Rich Coyle
Citigate Sard Verbinnen
212-687-8080
SOURCE: Nashua