Catalyst Paper Corporation - Demand conditions result in 30-day curtailment



    RICHMOND, BC, Aug. 27 /CNW/ - Catalyst Paper announced today that it will
curtail production of the No. 1 paper machine at its Crofton Division for 30
days, beginning on September 14, removing approximately 11,000 tonnes of paper
production.
    The curtailment is being taken in response to reduced paper demand in the
key US market, where adverse economic conditions have resulted in reduced
print advertising. It reflects Catalyst's strategy of matching production with
customer orders.
    "We are reviewing existing orders and inventories to address delivery
commitments and maintain efficient operations during this curtailment," said
President and CEO Richard Garneau.

    Catalyst is a leading producer of specialty printing papers and
newsprint, headquartered in Richmond, British Columbia, Canada. The company
also produces market kraft pulp and owns western Canada's largest paper
recycling facility. With six mills strategically located within western North
America, Catalyst has a combined annual capacity of 2.8 million tonnes of
production. Catalyst's common shares trade on the Toronto Stock Exchange under
the symbol CTL.

    Forward-Looking Statements

    Certain matters set forth in this news release, including statements with
respect to production levels and market demand for the company's products are
forward looking. These forward-looking statements reflect management's current
views and are based on certain assumptions including assumptions as to future
operating conditions and courses of action, as well as other factors
management believes are appropriate. Such forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially from those contained in these statements, including those risks and
uncertainties identified under the heading "Risks and uncertainties" in the
management's discussion and analysis contained in Catalyst's second quarter
2008 interim report available at www.sedar.com.





For further information:

For further information: Corporate Affairs, (604) 247-4011

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Catalyst Paper Corporation

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