/R E P E A T/ - Cascades announces the signature of definitive agreements for the combination of Reno de Medici S.p.A. and Cascades S.A.'s recycled boxboard business



    KINGSEY FALLS, QC, Sept. 14 /CNW Telbec/ - Cascades Inc. ("Cascades" -
CAS-TSX) announced today the signing of the definitive agreements for the
combination of Reno de Medici and Cascades S.A.'s recycled boxboard business,
the whole as announced in the press release issued on June 20, 2007.
    The planned combination will offer a unique portfolio of production
assets for all of Europe, presenting a combined annual capacity of more than
1,100 kT. This merger will thus result in an operationally and financially
stronger company that will be better able to respond to the demands of global
customers.
    The agreements signed today confirm the issuance of 115,600,000 common
shares of Reno de Medici to Cascades S.A. which will represent approximately
30.6% of the common shares of Reno de Medici after the merger. Cascades S.A.
also signed a shareholders agreement with a group of shareholders of Reno de
Medici who together, will hold approximately 20% of the common shares of Reno
de Medici after the merger. This agreement provides, among other things, that
the shareholders shall not sell their shares during the 18 months following
the merger and thereafter, shares may be sold subject to right of first
refusal and piggyback. This agreement also provides that the shareholders will
have equal representation on the board of directors of Reno de Medici after
the merger.
    The combination is subject to certain conditions, including, namely,
approval of the appropriate regulatory authorities as well as approval by
shareholders of Reno de Medici at a special meeting of the company, expected
to take place in October of this year. The transaction is expected to be
completed at the beginning of January, 2008.

    About Cascades Inc and Cascades S.A.

    Founded in 1964, Cascades produces, transforms 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
more than 40 years of experience in recycling, its continued efforts in
research and development are strengths which enable the company to create
innovative products for its clients. The Cascades shares trade on the Toronto
stock exchange under the ticker symbol CAS.
    Cascades S.A. is a European division of Cascades Inc. It includes
primarily 4 virgin and recycled manufacturing boxboard mills in France,
Germany and Sweden, a sheeting operation in England and an overall active
sales structure in Europe.

    About Reno De Medici SpA

    Reno De Medici produces, transforms and markets cartonboard. Reno De
Medici employs more than 1,100 employees and conducts its activities through
subsidiaries based in Italy, France, Spain and Germany. Reno De Medici is
listed on the Milan and Madrid stock exchanges.

    Certain statements in this release, including statements regarding future
results and performance, are forward-looking statements (as such term is
defined under the Private Securities Litigation Reform Act of 1995) based on
current expectations. The accuracy of such statements is subject to a number
of risks, uncertainties and assumptions that may cause actual results to
differ materially from those projected, including, but not limited to, the
effect of general economic conditions, decreases in demand for the Company's
products, increases in raw material costs, fluctuations in selling prices and
adverse changes in general market and industry conditions and other factors
listed in the Company's Securities and Exchange Commission filings.




For further information:

For further information: Medias: Mrs. Christine Beaulieu, Communications
Director, Cascades Inc, (819) 350-0793; Investors: Mr. Marc Jasmin, Director,
Investors Relations, Cascades Inc, (514) 282-2681


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