Fraser Papers Inc.
TSX : FPS

Fraser Papers Inc.

September 26, 2007 17:16 ET

Fraser Papers Announces Sale of Units of Acadian Timber Income Fund

TORONTO, ONTARIO--(Marketwire - Sept. 26, 2007) -

(All financial references are in US dollars unless otherwise noted)

Fraser Papers Inc. ("Fraser Papers" or the "Company")(TSX:FPS) announced today that it has sold its entire holdings of 3,613,780 units of Acadian Timber Income Fund (TSX:ADN.UN). 1,013,780 units were sold to two investment dealers and 2,600,000 units were sold to Brookfield Asset Management Inc. ("Brookfield") (TSX:BAM)(NYSE:BAM). The units, which represent a 22% interest in Acadian (on a fully-diluted basis), were sold through the facilities of the Toronto Stock Exchange ("TSX") pursuant to a control block distribution under National Instrument 45-102 Resale of Securities ("NI 45-102"). Net proceeds from the sale are approximately C$38.3 million and will be used to pay down drawings under the Company's working capital facility.

Fraser Papers is an integrated specialty paper company which produces a broad range of specialty packaging and printing 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 web site at www.fraserpapers.com.

Note: This press release contains forward-looking information and forward-looking statements within the meaning of Canadian provincial securities laws. These forward-looking statements include, among others, statements with respect to the proceeds of the sale of the Company's interest in Acadian. The word "will" and other expressions which may be predictions of or indicate future events and trends, and which do not relate to historical matters, identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause the use of such proceeds to differ materially from that set forth in the forward-looking statements include general economic conditions, interest rates, foreign exchange rates, changes in business strategy and other risks detailed from time to time in the documents filed by the Company with the securities regulators in Canada. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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