Fraser Papers Inc.
TSX : FPS

Fraser Papers Inc.

April 02, 2007 17:15 ET

Fraser Papers Announces Temporary Shutdown of Sawmills

TORONTO, ONTARIO--(CCNMatthews - April 2, 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 sawmills located in Juniper, New Brunswick, and Ashland, Maine beginning April 2, 2007 due to weak demand. The company expects the shutdown to be for two weeks in Juniper and four weeks in Ashland, depending on market conditions. The Company's sawmill located in Masardis, Maine, will increase production by adding a third shift and employing most of the employees from the Ashland operation. The temporary shutdown of the Juniper mill affects approximately 180 employees.

During the first quarter of 2007, the Company took two weeks of downtime at its sawmills, in Juniper and Plaster Rock, New Brunswick as well as three weeks at the Ashland mill and one week at the Masardis mill. The company noted that construction activity for new housing has decreased considerably from 2006 levels.

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 statements" that are based on certain assumptions and reflect the company's current expectations. The words "expects", "depending", "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 to differ materially from those set forth in the forward-looking statements include general economic conditions, interest rates, demand for and prices of the company's products, raw material and operating costs 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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