St. Bruno, Quebec, Canada, 02 July 2008 – Management of Norampac, a division of Cascades Canada Inc. (CAS on the Toronto Stock Exchange) announced today the closure of its Toronto boxboard mill for an indefinite period of time, due to unfavorable factors.

Nearly 140 employees will be affected by this closure, which will be effective at the latest on 14 September 2008. The Toronto mill has an annual production capacity of coated recycled boxboard (CRB) of approximately 180,000 short tons. During the shutdown period, Norampac mills in East Angus and Jonquière, Quebec, and in Versailles, Connecticut, USA, will ensure the supply of CRB to customers.

“This decision was taken to mitigate the negative impacts of several factors such as high labor costs, growing fiber supply costs, and rising energy costs. Unfortunately, we do not have any other choice at this point than to suspend the mill’s operations,” stated Marc-André Dépin, president and chief executive officer of Norampac.

Norampac owns seven containerboard mills, four boxboard mills, 27 corrugated products plants, and five folding carton plants in the United States, Canada, and France. Norampac is the largest containerboard producer in Canada and the third largest boxboard producer in North America. Norampac, which is also a major Canadian manufacturer of corrugated products and folding cartons, is a division of Cascades Canada Inc.

About Cascades

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