Catalyst to curtail newsprint and market pulp production

    RICHMOND, BC, Jan. 20 /CNW/ - Catalyst Paper announced today that, to
match production with orders, it will take curtailments at its Crofton and Elk
Falls mills in British Columbia as well as its Snowflake, Arizona mill. This
will remove 55,000 tonnes of newsprint from production in the first quarter.
    The Crofton No. 1 paper machine, which produces 140,000 tonnes of
newsprint on an annualised basis, will be idled on February 1 and remain shut
down until market conditions improve, with layoffs affecting approximately 50
employees. Curtailments at the Elk Falls and Snowflake mills will vary in
duration and will be aligned with order file requirements.
    "The slowdown in newspaper advertising along with restructuring by
publishers in key paper markets is unprecedented, and conditions are expected
to remain very challenging in the foreseeable future," said Richard Garneau,
president and chief executive officer.
    In a related move that reflects weaker pulp markets, the Crofton kraft
pulp mill will add to a planned maintenance shut, with market-related
downtime, bringing the total curtailment to 35 days and removing 38,000 tonnes
of market pulp from production in the first quarter.

    2009 - Q1 Production Curtailment
    (000 tonnes)                         Newsprint         Pulp        Total
    Snowflake (Jan/Feb/Mar)                   20.0            -         20.0
    Crofton (Jan/Feb/Mar)                     22.0         38.0         60.0
    Elk Falls (March)                         13.0            -         13.0
    Total                                     55.0         38.0         93.0

    As a result of weaker paper markets in the fourth quarter of 2008,
Catalyst took curtailments that removed 73,000 tonnes of newsprint, 27,000
tonnes of specialty printing papers, and 72,000 tonnes of pulp from

    Catalyst is the largest producer of specialty printing papers and
newsprint in Western North America and also produces market kraft pulp and
owns Western Canada's largest paper recycling facility. The company's six
mills have a combined annual capacity of 2.4 million tonnes of production.
Catalyst is headquartered in Richmond, British Columbia, Canada and its common
shares trade on the Toronto Stock Exchange under the symbol CTL.

    Forward-Looking Statements

    Certain matters set forth in this news release, including statements with
respect to production levels, market demand for the company's products,
advertising and publishing activity and general economic conditions are
forward looking. These forward-looking statements reflect management's current
views and are based on certain assumptions including assumptions as to future
operating conditions and courses of action, economic conditions and other
factors management believes are appropriate. Such forward-looking statements
are subject to risks and uncertainties that may cause actual results to differ
materially from those contained in these statements, including those risks and
uncertainties identified under the heading "Risks and uncertainties" in the
management's discussion and analysis contained in Catalyst's third quarter
2008 interim report available at

For further information:

For further information: Lyn Brown, Vice-President, Corporate Relations,
(604) 247-4713

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Catalyst Paper Corporation

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