SFK Pulp adopts proactive measures to face volatile market conditions



    TSX: SFK.UN

    LONGUEUIL, QC, Jan. 19 /CNW Telbec/ - SFK Pulp announced today that it is
suspending its monthly cash distributions and does not intend to reinstate
them until market conditions substantially improve. SFK Pulp also announced
that it will extend the current quarter's scheduled maintenance shutdowns at
both its U.S. Recycled Mills to balance its order book with inventory levels.
    As mentioned in the Fund's third quarter 2008 Management's Discussion and
Analysis, Management is committed to prudently administering the level of its
reserve(1) through the difficult times currently being faced by SFK Pulp's
customers. Even though the reserve continues to trend above the $20 million
target set by the Board of Directors, Management believes it should improve
its financial flexibility to:

    1. Protect and potentially further improve SFK Pulp's balance sheet; and
    2. Seize appropriate investment opportunities as they arise.

    "We strongly believe that proactively suspending distributions and
further working to improve our balance sheet, while maintaining flexibility
for investments, is the prudent course of action in view of the current
volatile market conditions," said Pierre Gabriel Côté, President and Chief
Executive Officer.
    In addition, in order to better balance RBK pulp inventories with SFK
Pulp's order book, both the Menominee and Fairmont Mills will extend their
scheduled first quarter maintenance shutdowns for approximately two (2) and
seven (7) days, respectively. This measure will remove a total of
approximately 10,000 metric tonnes of RBK pulp from production, including
planned outages.

    Note (1)
    --------

    SFK Pulp's reserve is a key financial indicator comprised of working
capital and cash, established to protect SFK Pulp's long standing commitment
to capital investment, including its major maintenance program, provide for
scheduled debt reimbursement and reduce the impact of negative fluctuations in
future cash flows.

    About SFK Pulp

    SFK Pulp (TSX: SFK.UN), a leading producer and marketer of premium virgin
and recycled kraft pulp, operates three mills in Saint-Félicien, Québec,
Fairmont, West Virginia, and Menominee, Michigan. SFK Pulp employs
approximately 550 people and has a total annual production capacity of 735,000
metric tonnes. The Saint-Félicien Mill supplies northern bleached softwood
kraft (NBSK) pulp to various sectors of the paper industry in Canada, the
United States and Europe for use in speciality products. The Fairmont and
Menominee Mills manufacture air-dried market recycled bleached kraft (RBK)
pulp and primarily supply manufacturers of uncoated freesheet, commercial and
away-from-home tissue and coated paper in the U.S.
    %SEDAR: 00018041EF




For further information:

For further information: Investors and Analysts: Mrs. Patsie Ducharme,
SFK Pulp, Vice-President and Chief Financial Officer, (450) 677-7857 ext.
2225; Media and others: Mr. Dany Paradis, SFK Pulp, Vice-President, Change
Management and Public Affairs, (450) 677-7857 ext. 2227; Mr. Rick Leckner,
MaisonBrison, (514) 731-0000 ext. 222

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SFK PULP FUND

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