Moody's Affirms Cascades' Debt Ratings

Kingsey Falls, Quebec, Canada, 09 June 2006 -- /PRNewswire/ -- The Moody's rating agency has recently affirmed via a press release the credit ratings of Cascades' debt instruments.

Moody's affirmed the Ba2 corporate family rating, assigned Ba1 ratings to the company's CAD 450 million senior secured five- year revolver and CAD 100 million senior secured seven-year term loan. The rating agency also affirmed the Ba3 rating on Cascades' USD 675 million senior unsecured debt. The overall rating outlook is stable.

"We are pleased to observe that despite relatively difficult market conditions characterized by the rapid appreciation of the Canadian dollar and energy prices that one of the main rating agencies has recognized the benefits of our diversification as well as the significant restructuring efforts undertaken in recent years," said Alain Lemaire, president and CEO. "With the support of our employees, we intend to continue in this direction in order to ensure the company's long term financial health."

Founded in 1964, Cascades produces, transforms, and markets packaging products, tissue paper, and fine papers, composed mainly of recycled fibers. Cascades employs nearly 14,300 men and women who work in some 120 modern and flexible production units located in North America, in Europe, and in Asia. Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.

Source: CASCADES INC.