Richmond, British Columbia, Canada, 27 August 2008 – Catalyst Paper announced today that it will curtail production of the No. 1 paper machine at its Crofton Division for 30 days, beginning 14 September, removing approximately 11,000 metric tons of paper production.

The curtailment is being taken in response to reduced paper demand in the key U.S. market, where adverse economic conditions have resulted in reduced print advertising. It reflects Catalyst’s strategy of matching production with customer orders.

“We are reviewing existing orders and inventories to address delivery commitments and maintain efficient operations during this curtailment,” said Richard Garneau, president and CEO .

Catalyst, a leading producer of specialty printing papers and newsprint, is headquartered in Richmond, British Columbia, Canada. The company also produces market kraft pulp and owns western Canada’s largest paper recycling facility. With six mills strategically located within western North America, Catalyst has a combined annual capacity of 2.8 million metric tons of production. Catalyst’s common shares trade on the Toronto Stock Exchange under the symbol CTL.