Cascades to Acquire New Assets in the Tissue Paper Sector

    KINGSEY FALLS, QC, June 12 /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 reached an agreement with
Atlantic Packaging Products Ltd. to acquire its tissue business for the price
of approximately $60 million.
    Once completed this transaction will enable Cascades Tissue Group to
increase its annual capacity of recycled tissue by 55,000 tonnes, while
augmenting converting capacity by close to 70,000 tonnes. These assets are
located in or close to Toronto, thereby increasing the number of Cascades
employees in Ontario by 175 for a total of 2,175 employees in that province
    In commenting on the transaction, Alain Lemaire, President and Chief
Executive Officer, stated: "This acquisition is in keeping with two of our
main long term strategic objectives: continued growth of our tissue business
and consolidation of our leadership position in the development of
environmentally responsible products. The tissue sector has proven itself to
be recession resistant showing steady growth thru the economic cycles and we
believe business perspectives for this sector will continue to be advantageous
for us going forward, particularly in the area of recycled products where
Atlantic brings us added expertise."
    According to Suzanne Blanchet, President and Chief Executive Officer of
Cascades Tissue Group: "With this acquisition we will be better positioned not
only to expand our production of eco-friendly products in Ontario where many
of our important customers are based, but also to pursue the development of
the Cascades brand there and elsewhere in Canada. Moreover, the addition of
these assets to our existing business offers interesting opportunities for
synergies in terms of logistics and production efficiencies."
    This transaction is subject to the usual conditions, including the
approval of the Competition Bureau. The parties expect to complete the
transaction within 15 days following the date such approval is obtained.

    Founded in 1964, Cascades produces, converts and markets packaging and
tissue products composed mainly of recycled fibres. Cascades employs close to
13,000 employees who work in more than 100 modern and flexible production
units located in North America and Europe. Cascades' management philosophy,
its 45 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: 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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