Fraser Papers Inc.
TSX : FPS

Fraser Papers Inc.

August 27, 2007 06:00 ET

Fraser Papers' Thurso Pulp Mill to Reduce Energy Costs and Improve Environmental Performance

TORONTO, ONTARIO--(Marketwire - Aug. 27, 2007) -

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

Fraser Papers Inc. ("Fraser Papers") (TSX:FPS) announced today it has signed an agreement with ForEverGreen Energy Inc. to install a heat exchange unit at its pulp mill in Thurso, Quebec.

Once installed on the mill's main heat stack, the heat exchange unit will produce thermal power that the Thurso operations will use to displace approximately 5% to 10% of the fossil fuel it currently consumes at significant savings to the current cost of oil. In addition to lowering energy costs, the heat exchange unit will provide important environmental benefits, including reduced emissions of greenhouse gases, such as nitrous oxide and sulphur dioxide.

"This initiative will improve our energy efficiency and strengthens our environmental position at our pulp and paper facilities," noted Jean-Pierre Benoit, General Manager at the Thurso pulp mill. "We are committed to improving environmental performance in all aspects of our operations."

The anticipated emission reductions are equivalent to permanently removing more than 2,000 cars from the road, which is more than double the number of cars driven by the residents of the entire town of Thurso.

Work will begin during the scheduled maintenance outage in October, 2007.

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 reduced energy costs, improved environmental performance, the installation of equipment to produce thermal power and the resulting reduction in fossil fuel consumption, reduced emissions of greenhouse gases and improved energy efficiency. The words "will", "anticipate" 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 energy and environmental initiatives to differ materially from those set forth in the forward-looking statements include general economic conditions, unforeseen installation or equipment problems and fluctuations in the oil and gas markets 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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