Cascades completes the Acquisition of Atlantic Packaging's Tissue Division

    KINGSEY FALLS, QC, Aug. 31 /CNW Telbec/ - Cascades Inc. (CAS on the
Toronto Stock Exchange), a leader in recovery and in green packaging and
tissue paper products, announces that it has completed the acquisition of the
tissue division of Atlantic Packaging Products Ltd.
    The estimated value of the transaction is approximately $60 M. This
acquisition will enable Cascades to increase its annual production capacity by
55,000 short tons of recycled paper and its converting capacity by
approximately 70,000 short tons adding close to $100 million in sales per
    According to Suzanne Blanchet, President and Chief Executive Officer of
Cascades Tissue Group: "Cascades Tissue Group has dedicated considerable
resources to the development of the Cascades Enviro100% recycled brand, to the
point where it is now considered to be the number one green brand in the
country, according to AC Nielsen. This transaction will enable us to further
the development of the Cascades Enviro100% recycled brand particularly in
central and western Canada by bringing us closer to our customers who are
located west of Québec."
    In commenting on the transaction, Alain Lemaire, President and Chief
Executive Office, stated: "This acquisition which allows us to further
consolidate our position as a leader in the development of environmentally
responsible products. Atlantic Packaging Products Ltd. has been using recycled
fibres to manufacture its products for many years. Building on this
experience, Cascades will ensure that its environmentally sound principles are
applied to existing processes, namely, with regards to green chemistry and
minimal consumption of water and energy."
    Cascades products can be obtained in Ontario at Wal-Mart, Canadian Tire
and Costco, and under the Metro banners (A & P, The Barn, Ultra Food and
Drugs, Loeb, Dominion).

    Founded in 1964, Cascades produces, converts and markets packaging and
tissue products composed mainly of recycled fibres. Cascades employs nearly
13,000 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 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.

    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: Media: Hubert Bolduc, Vice-President,
Communications and Public Affairs, (514) 912-3790; Investors: Didier Filion,
Director, Investor Relations, (514) 282-2697; Source: Suzanne Blanchet,
President, Cascades Tissue Group

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