Fraser Papers Inc.
TSX : FPS

Fraser Papers Inc.

January 31, 2006 10:02 ET

Fraser Papers Announces Closing of Initial Offering of Acadian Timber Income Fund Units

TORONTO, ONTARIO--(CCNMatthews - Jan. 31, 2006) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

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

Fraser Papers Inc. ("Fraser Papers")(TSX:FPS) announced today that Acadian Timber Income Fund ("Acadian" or the "Fund") has completed its initial public offering of Fund units. The Fund issued 8,450,643 units at C$10.00 per unit raising gross proceeds in the offering of C$84.5 million. Units of the Fund commenced trading today on the Toronto Stock Exchange under the symbol ADN.UN.

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 web site at www.fraserpapers.com.

Note: This press release contains "forward-looking statements" that are based on certain assumptions and reflect the company's current expectations. The words "believe," "expect," "anticipate," "intend," "estimate" and other expressions which are 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 actual results to differ materially from those set forth in the forward-looking statements include general economic conditions, interest rates, availability of equity and debt financing 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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