Catalyst streamlines management structure at two mills

    VANCOUVER, March 6 /CNW/ - As part of its drive for efficiency, Catalyst
Paper today announced that it will combine the management organization of its
Port Alberni and Crofton mills, effective immediately. This move continues the
workforce reduction program announced in mid-February that will see
350 positions eliminated in 2007.
    This phase will see Port Alberni mill shed 37 staff and administrative
positions by year end as the operation reduces management layers and takes
full advantage of integrated financial and information systems. Reductions
will be made through attrition, transfers to other divisions, early
retirements and some terminations.
    "Employees have worked hard to make these mills more efficient and have
improved performance significantly. And we will continue to take the steps
necessary to keep pace with the markets and strengthen our position in the
paper grades we make," said Ron Buchhorn, senior vice-president, operations.
"Our competitors are certainly not standing still."
    Beyond management changes, Catalyst continues to press the City of Port
Alberni to bring the mill's property taxes in line with what competitors pay
in other jurisdictions and is inviting sales offers on surplus property that
is no longer needed to support the mill's operation.

    Catalyst is a leading producer of mechanical printing papers in North
America. The company also produces market kraft pulp and owns Western Canada's
largest paper recycling facility. With five mills employing 3,500 people at
sites within a 160-kilometre radius on the south coast of British Columbia,
Catalyst has a combined annual capacity of 2.4 million tonnes of product.
Catalyst Paper Corporation common shares trade on the Toronto Stock Exchange
under the symbol CTL. The company is headquartered in Vancouver, B.C.

    %SEDAR: 00000638E

For further information:

For further information: Lyn Brown, Vice-President, Corporate Affairs,
(604) 654-4212

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Catalyst Paper Corporation

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