Cascades to play central role in Savoie biomass power plant project

    KINGSEY FALLS, QC, June 23 /CNW Telbec/ - Cascades S.A., Division La
Rochette will host a major biomass-fuelled electric power generation project.
Under the management of Cofathec, a Gaz de France subsidiary, the Cégaz
project will enable a 7,500-ton reduction in the coated boxboard mill's CO2
emissions and generate 40 million kWh of electricity that will be returned to
France's transmission grid. This cogeneration power plant will be operational
by 2010.
    The Cégaz project will promote an innovation that represents a first for
France: wood gasification technology, the 30-million-euro implementation cost
of which will be covered by Gaz de France. This initiative is part of the
second call for tenders, pertaining to cogeneration power plants, that the
Commission de Régulation de l'Energie (CRE) has issued in France in order to
meet the country's renewable energy production objectives.
    "We are very pleased to be involved in the Cégaz project," said
Daniel Parrot, managing director of Cascades S.A., Division La Rochette. "This
undertaking will make it possible for us to virtually eliminate our use of
fossil energy, replacing it with biomass energy, to achieve better control of
our energy costs and to pool our equipment operating costs."
    The Cégaz project was announced concomitantly with another
environment-saving measure introduced by Cascades La Rochette: the start-up of
a new turbine-driven alternator, also fuelled by biomass. This cogeneration
project, which required investments totalling 2 million euros, will produce
5.4 MWh of electricity.
    Cascades S.A., Division La Rochette has also received confirmation of a
two-year extension on the TaRTAM electricity rates system, which translates to
yearly savings for this facility of 4 million euros in 2009 and 2010.

    Founded in 1964, Cascades produces, converts 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 and 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 the European division of Cascades Inc. Present in Europe
since 1985, Cascades owns two virgin boxboard mills (in France and Sweden) and
offers a wide range of coated cartonboard for packaging in the food and
non-food industries. Cascades also owns a 31% equity investment in Reno de
Medici S.p.A. (RM on the Milan stock exchange), the second largest boxboard
producer in Europe.

For further information:

For further information: Hubert Bolduc, Vice-President, Communications
and Public Affairs, Cascades inc., Cellular: (514) 912-3790; Source: Daniel
Parrot, Managing director, Cascades S.A., Division La Rochette

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