Fraser Papers Inc.
TSX : FPS

Fraser Papers Inc.

August 24, 2007 17:05 ET

Fraser Papers Announces Temporary Shutdown of Sawmill

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2007) -

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

Fraser Papers Inc. ("Fraser Papers") (TSX:FPS) announced today the temporary shutdown of its 130 MMfbm dimension lumbermill in Juniper, New Brunswick for up to 11 months, effective October 5, 2007. Weak housing markets in the United States, continued oversupply of lumber and a strong Canadian dollar have contributed to unsustainable operating losses at the mill over the last 12 months. In addition, reduced logging activity in recent months has significantly reduced the supply of wood from private lands. The Company expects that these conditions will persist into 2008. The shutdown will impact approximately 175 employees at the mill.

"Despite significant efforts by our employees to minimize costs and improve operations, we have been absorbing significant cash losses at our Juniper sawmill," commented Peter Gordon, President and CEO of Fraser Papers. "As a result, we have made the difficult decision to close the Juniper mill for up to 11 months and look outside the Company for an alternate and lower cost supply of woodchips and biomass during that time period for our integrated specialty paper operations located in Edmundston, New Brunswick and Madawaska, Maine."

During the shutdown, Fraser Papers has secured an alternate woodchip and biomass fuel supply for its sulphite pulp mill in Edmundston. The Company will continue to utilize its Crown Lands Service Agreement with Acadian Timber Income Fund ("Acadian") (TSX:ADN.UN) to harvest its Crown allocation.

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 temporary shutdown of the Company's Juniper, NB sawmill and the number of employees impacted, reduced logging activity, an alternate woodchip and biomass fuel supply and the Company harvesting its Crown allocation under its Crown Lands Service Agreement with Acadian. The words "expect", "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 actual results of the temporary shutdown, logging activity, alternate woodchip and biomass supply and harvesting of the Company's Crown allocation to differ materially from those set forth in the forward-looking statements include general economic conditions, housing markets, demand for and prices of lumber, logging activity, foreign exchange rates, non-performance by supplier(s), unforeseen weather problems, equipment problems or staffing issues 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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