Fraser Papers Inc.
TSX : FPS

Fraser Papers Inc.

October 14, 2005 08:00 ET

Fraser Papers Announces Sale of Paperboard Operations

TORONTO, ONTARIO--(CCNMatthews - Oct. 14, 2005) -

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

Fraser Papers Inc. (TSX:FPS) today announced that it has sold certain assets of its paperboard operations located in Edmundston, New Brunswick to Cascades Inc. (TSX:CAS), a leader in the manufacture of packaging products, tissue paper and specialized fine papers, for $5 million. Cascades will be relocating the purchased assets to its facilities. Fraser Papers will record a charge of approximately $9 million relating to this sale.

"The sale of our paperboard operations is consistent with our strategy to reposition Fraser Papers as a pulp integrated, technical specialty and high value printing & writing paper business," commented Dominic Gammiero, President and CEO of Fraser Papers. "This transaction maximizes value for Fraser Papers' shareholders from a non-core operation where our small market share, structural changes in the industry and challenging competitive environment were impacting our ability to generate sustainable profitability."

Fraser Papers manufactured approximately 50,000 tons per year of paperboard at its facility in Edmundston.

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.

Contact Information

  • Fraser Papers Inc.
    Ben Vaughan
    Senior Vice President, Finance and Corporate Development
    (416) 359-8623
    vaughanb@fraserpapers.com