Cascades Integrates North American Boxboard and Containerboard Operations

Kingsey Falls, Quebec, Canada, 18 March 2008 -– Cascades (CAS on the Toronto Stock Exchange) announces the integration of its North American boxboard operations with its containerboard operations (Norampac). In addition to achieving certain synergies, this integration will enhance the sharing of technology while creating a larger packaging group that will be better able to respond to the needs of customers in Canada and in the United States.

The activities of the Cascades Boxboard Group in North America, in particular, include four coated boxboard mills, 12 converting plants, with more than 2950 employees. Following the consolidation, Norampac, which is currently the largest manufacturer of containerboard in Canada, will be comprised of approximately 50 manufacturing and converting units and more than 7560 employees in the packaging sector. Management of the converting activities for the quick-service restaurant industry (Dopaco) and that of the boxboard activities in Europe will not be affected by this reorganization.

With full ownership of Dopaco and on the strength of the recent Reno de Medici transaction in Europe, this reorganization constitutes another milestone in the company's restructuring plan, which aims to improve the financial performance of the boxboard sector as well as Cascades in its entirety.

In commenting on this reorganization, Alain Lemaire, president and chief executive officer of Cascades stated: "This reorganization follows Cascades’ strategic plan and aims to enhance the performance of our boxboard sector. In providing additional tools to improve our profitability, the new structure will create a first-rate, more competitive player in the packaging industry. In light of similar past internal reorganizations, we are convinced that this will rapidly develop operational synergies. Furthermore, our customers will be able to take advantage of this reorganization by benefiting from a more comprehensive product offering and will continue to be served in a professional and rigorous manner."

Founded in 1964, Cascades produces, converts, and markets packaging and tissue products composed mainly of recycled fibers. Cascades employs nearly 14,000 men and women who work in some 100 modern and flexible production units in North America and in Europe. Cascades' management philosophy, its more than 40 years of experience in recycling, and its continuous efforts in research and development are strengths enabling the company to create innovative products for its customers. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.