Fraser Papers Inc.

Fraser Papers Inc.

January 05, 2005 19:00 ET

Fraser Papers Announces Sale Of Midwest U.S. Operations To Smart Papers


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FRASER PAPERS INC.

TSX SYMBOL: FPS

JANUARY 5, 2005 - 19:00 ET

Fraser Papers Announces Sale Of Midwest U.S.
Operations To Smart Papers

TORONTO, ONTARIO--(CCNMatthews - Jan. 5, 2005) - (All financial
references are in US dollars unless otherwise noted)

Fraser Papers Inc. (TSX:FPS) today announced that it has entered into an
asset purchase agreement with SMART Papers, LLC whereby an affiliate of
SMART Papers will acquire Fraser Papers' pulp and paper assets located
in Park Falls, Wisconsin, as well as the West Chicago, Illinois,
converting, distribution and customer service centers. SMART Papers is a
privately held manufacturer of premium printing papers based in
Hamilton, Ohio. The acquisition will include the text, cover and
commercial printing paper product brands produced at the Park Falls
facility.

This transaction represents ongoing progress on Fraser Papers' strategic
initiative to reposition its asset base and to focus on its core
integrated paper operations. Fraser Papers does not expect to record any
significant gain or loss on this transaction and will benefit from an
immediate reduction in selling and administrative costs. As part of this
transaction, Fraser Papers will receive a passive minority interest in
the parent of SMART Papers. This transaction is subject to customary
closing conditions and is expected to close in approximately 60 days.

Fraser Papers is an integrated specialty paper company which produces a
broad range of technical, and printing & writing papers. The company has
operations in New Brunswick, Maine, New Hampshire and Quebec. Fraser
Papers is listed on the Toronto Stock Exchange under the symbol: FPS.
For more information, visit the Fraser Papers website at
www.fraserpapers.com

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