Cascades announces new investments

    KINGSEY FALLS, QC, Jan. 12 /CNW Telbec/ - Cascades Inc. (CAS on the
Toronto Stock Exchange) is pleased to announce a first investment of $5 M at
its Norampac plant in Kingsey Falls, which aims to streamline this unit that
manufactures linerboard made from 100% recycled fibres. The current project
consists of expanding the building to replace the winder as well as create
additional space for future investments.
    Since its inception in 1964, while its production totalled 10,000 tonnes
per year, the plant, formerly called "Division Papier" (Paper Division), has
invested $55 M in total in order to increase its annual production capacity to
90,000 tonnes. At the end of this current project, whose subsequent phases are
intended for 2010 and 2011, production capacity at the plant will be greater
than 125,000 tonnes per year.
    In 2008, more than $12 M was invested in the seven production units in
Kingsey Falls alone. In Québec, Cascades invested more than $50 M last year
and approximately $175 M was allocated for fixed capital costs for the entire
organization world-wide. In 2009, depending on the status of the global
economic situation and its financial performance, Cascades intends to invest
approximately $100 M in capital costs.

    Founded in 1964, Cascades produces, converts and markets packaging and
tissue products composed mainly of recycled fibres. Cascades employs nearly
14,000 men and women who work in some 100 modern and flexible production units
located in North America and in Europe. Cascades' management philosophy, its
45 years of experience in recycling, its continuous efforts in research and
development are strengths which enable the company to create innovative
products for its customers. The Cascades shares trade on the Toronto stock
exchange under the ticker symbol CAS.

For further information: Mr. Hubert Bolduc, Vice-President,
Communications and Public Affairs, Cascades Inc., [phone], Cell.: (514)
912-3790; Didier Filion, Director, Investor Relations, Cascades Inc., (514)
282-2697, Cell.: [phone]