Cascades pays the price for reduced water consumption

    KINGSEY FALLS, QC, June 19 /CNW Telbec/ - In accordance with the decision
rendered by the Court of Québec, Cascades Fine Papers Group Inc., Breakey
Fibres Division (Cascades) will pay a $45,000 fine as well as an additional
$80,000 to the Environmental Damages Fund, which serves to protect or
rehabilitate fish habitat in streams in Quebec. This decision is the result of
difficulties encountered by Cascades in meeting certain control tests (trout
toxicity), applicable under the provisions of the Fisheries Act, on effluent
from its de-inked pulp mill in Breakeyville, Québec, in 2003, 2004 and 2005.
    Since then, Cascades has been able to control its effluent and is in full
compliance of all its effluent discharge.
    "Cascades deplores the fact that the trout toxicity test does not take
into account the quantities of water used to manufacture pulp and paper which
penalizes the mills that strive to reduce their consumption. A mill that
consumes less water discharges less effluent. When effluent is toxic, within
the intent of the law, it has much less impact on the environment, in light of
its low flow rate, explains Léon Marineau, Vice-President, Environment at
Cascades. Thus, for Cascades, where reduced water consumption is a priority
(Cascades uses seven times less water than the industry average), we run the
risk of failing the test without hurting the environment, he underlined."
    Since 1999, Cascades has attempted to have Environment Canada recognize
its efforts in the reduction of water consumption. The trout toxicity test was
developed in the 1980s, at a time when water conservation was less of a
preoccupation than it is today. Cascades has proposed that this test be
adapted to new challenges facing the paper industry, namely, reducing water
consumption thru this energy consumption and greenhouse gas emissions.

    Founded in 1964, Cascades produces, transforms and markets packaging and
tissue products composed mainly of recycled fibres. Cascades employs close to
14 000 employees who work in more than 100 modern and flexible production
units located in North -America and 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 new
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: Mr. Hubert Bolduc, Vice-President,
Communications and Public Affairs, (819) 363-5161, (514) 912-3790; Mr. Léon
Marineau, Vice-President, Environment, (819) 363-5702

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