Abstract: A rotary cutting assembly for cutting sheets of veneer as they are moving on a conveyor belt is provided. The rotary cutting assembly (10) includes at least one rotary blade assembly (12), a conveyor belt (20) for conveying material and acting as a cutting surface, a flexible flat platen (40) positioned under the inner surface (36) of the conveyor belt (20) in vertical alignment with the rotary blade assembly (12), and a backup roller (26) positioned above the rotary blade assembly (12). The rotary blade assembly (12) includes an elongated blade holder (64) with opposed sides (66 and 68) that taper outwardly to define opposed edges (70 and 72) having longitudinal channels (74 and 76). A clamping assembly (62) that includes a grooved clamp (84) and a tapered bar (86) securely clamps a blade (18) within each of the channels (74 and 76).