Elk Falls Division to curtail operations due to fibre supply disruption

    VANCOUVER, Aug. 17 /CNW/ - Due to fibre supply limitations caused by the
ongoing United Steel Workers strike, Catalyst Paper Corporation will curtail
most of its production at the Campbell River Elk Falls mill effective
August 31, 2007 at 8:00 a.m. The temporary closure removes about 1,100 tonnes
per day of paper production and 900 tonnes per day of pulp products impacting
about 600 employees. To protect service to key customers for as long as
possible, the mill will continue to run its No. 2 paper machine. This
production will be curtailed sometime in mid-September.
    The situation with respect to the coastal forest industry strike and its
impact on Catalyst Paper is growing more difficult. The company continues to
actively manage its fibre supply and inventories. While the remainder of the
company's manufacturing facilities maintain full operations, the likelihood of
additional curtailments will increase as the labour disruption moves into
September. Catalyst Paper continues to call for a quick resolution to the

    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 and 3,500 employees 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, BC.

    %SEDAR: 00000638E

For further information:

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

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Catalyst Paper Corporation

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