SFK Pulp obtains temporary waiver for convenant breach


    LONGUEUIL, QC, June 29 /CNW Telbec/ - SFK Pulp announces that following
this morning's announcement of an interest coverage ratio breach, it has since
obtained from its lenders a two-week temporary waiver while negotiating a
permanent amendment to its credit agreement. SFK Pulp is reasonably confident
to reach a satisfactory agreement with its lenders within this time frame.

    About SFK Pulp

    SFK Pulp (TSX: SFK.UN), a leading producer and marketer of premium virgin
and recycled kraft pulp, operates three mills in Saint-Félicien, Québec,
Fairmont, West Virginia, and Menominee, Michigan. SFK Pulp employs
approximately 550 people, including 306 in its Saint-Félicien Mill, and has a
total annual production capacity of 745,000 metric tonnes. The Saint-Félicien
Mill supplies northern bleached softwood kraft (NBSK) pulp to various sectors
of the paper industry in Canada, the United States and Europe for use in
specialty products. The Fairmont and Menominee Mills manufacture air-dried
market recycled bleached kraft (RBK) pulp and primarily supply manufacturers
of uncoated freesheet, commercial and away-from-home tissue and coated paper
in the U.S.
    %SEDAR: 00018041EF

For further information:

For further information: Investors and Analysts: Mrs. Patsie Ducharme,
SFK Pulp, Vice-President and Chief Financial Officer, (450) 677-7857 ext.
2225; Media and others: Mr. Dany Paradis, SFK Pulp, Vice-President, Change
Management and Public Affairs, (450) 677-7857 ext. 2227

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