Fraser Papers Inc.

Fraser Papers Inc.

March 02, 2005 09:09 ET

Fraser Papers Inc. Announces Planned Note Issuance


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FRASER PAPERS INC.

TSX SYMBOL: FPS

MARCH 2, 2005 - 09:09 ET

Fraser Papers Inc. Announces Planned Note Issuance

TORONTO, ONTARIO--(CCNMatthews - March 2, 2005) - NOT FOR DISTRIBUTION
TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES

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

Fraser Papers Inc. (TSX:FPS) today announced its intention, subject to
market conditions, to sell $150 million principal amount of ten-year,
senior unsecured notes.

Fraser Papers intends to use a portion of the net proceeds of the
offering to repay the amounts outstanding to an affiliate of Brascan
Corporation under a revolving term loan and to purchase certain assets
which have operating lease obligations which are currently guaranteed by
Norbord Inc. The remainder of the net proceeds will be used for general
corporate purposes.

This press release does not constitute an offer of the notes for sale in
any jurisdiction. The notes to be offered will not be and have not been
registered under the Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration under that Act
or an applicable exemption from registration requirements of that Act.
This press release includes forward looking statements, that represent
Fraser Papers' expectations and beliefs concerning future events. Actual
results could differ materially from those currently anticipated.

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