(All amounts in this press release are in Canadian dollars unless otherwise indicated.)

- Net earnings of $0.35 per share ($34 million) compared to a net loss of

$0.07 per share ($7 million) in the third quarter of 2008. Excluding

specific items, net earnings of $0.36 per share ($35 million) compared

to net earnings of $0.06 per share ($6 million) in the same period of

last year;

- For the first nine months of 2009, net earnings of $1.03 per share

($101 million), $0.86 per share ($84 million) when excluding specific

items;

- Highest operating income before depreciation and amortization (EBITDA)

excluding specific items in the Company's history, $127 million, up 5%

compared to the previous quarter and 44% compared to the same period of

last year;

- Cash flow from operations excluding specific items more than doubled

compared to Q3 2008 to $95 million ($0.97 per share);

- Net debt down by approximately $90 million in comparison to the

previous quarter, notwithstanding acquisitions in the tissue paper and

recovery sectors. Compared to the same period of last year, Cascades'

net debt decreased by $216 million;

- Two strategic acquisitions in the paper recovery sector increasing

Cascades' collection capacity by 20%, thus reaffirming the Company's

position as the largest paper collector in Canada and amongst the

leaders in North America.

----------------------------------------------------------------- --------

----------------------------------------------------------------- --------

Financial Highlights

--------------------

Selected consolidated information

(in millions of Canadian dollars, except --------------------- --------

amounts per share) Q3/2009 Q3/2008 Q2/2009

------------------------------------------ --------------------- --------

Note 2 Note 2

Sales 974 1,039 981

Excluding specific items(1)

Operating income before depreciation and

amortization (OIBD or EBITDA) 127 88 121

Operating income from continuing

operations 74 34 66

Net earnings 35 6 28

per common share $0.36 $0.06 $0.28

Cash flow from operations (adjusted)

from continuing operations 95 47 85

per common share $0.97 $0.47 $0.87

As reported

Operating income before depreciation and

amortization (OIBD or EBITDA)(1) 129 71 130

Operating income from continuing

operations 76 17 75

Net earnings (loss) 34 (7) 30

per common share $0.35 $(0.07) $0.30

Cash flow from operations (adjusted) from

continuing operations(1) 94 43 81

per common share(1) $0.96 $0.43 $0.83

----------------------------------------------------------------- --------

Note 1 - see the supplemental information on non-GAAP measures note.

Note 2 - the 2008 results were restated following the retrospective

application of CICA handbook Section 3064

Operating income before depreciation (OIBD or EBITDA) and net earnings excluding specific items increased significantly to respectively $127 million and $35 million ($0.36 per share) in the third quarter of 2009 compared to $88 million and $6 million ($0.06 per share) in the same period in 2008.

Excluding specific items, EBITDA also improved by $6 million in comparison to the previous quarter while net earnings increased by $7 million.

Including specific items, the operating income before depreciation and net earnings also grew substantially to reach respectively $129 million and $34 million ($0.35 per share) in the third quarter of 2009 compared to $71 million and a net loss of $7 million ($0.07 per share) for the same quarter in 2008.

Commenting on the quarterly results, Mr. Alain Lemaire, President and Chief Executive Officer stated: "We delivered very strong third quarter results in a challenging environment. Compared to the previous quarter, we experienced some selling price erosion and we faced the rapid rise of our recycled fibre costs and the Canadian dollar. However, our shipments increased by 5% and we were able to control our fixed and other variable costs to deliver the highest EBITDA in the Company's history. Moreover, we continue to generate strong free cash flow and pay down debt."

Results analysis for the three-month period ended September 30, 2009

----------------------------------------------------------------- ---

In comparison with the same period last year, sales decreased by 6% to $974 million reflecting a drop in all our selling prices, an 8% fall in shipments, partly offset by the depreciation of the Canadian dollar.

Operating results however improved despite lower sales volumes and selling prices. In fact, the operating income from continuing operations more than quadrupled to $76 million compared to $17 million last year due mainly to lower raw material and energy costs as well as the depreciation of the Canadian dollar. When excluding specific items, operating income from continuing operations increased by $40 million to $74 million. The third quarter operating results include a $4 million profit resulting from the settlement of a construction mandate conducted by our engineering and project division in Western Canada.

The specific items that impacted the operating income in the third quarter of 2009 include $5 million in closure and restructuring costs, a $1 million impairment charge, as well as a $8 million unrealized gain on commodity financial instruments. In addition to these specific items, the $34 million in net earnings also reflects a $3 million foreign exchange loss on long-term debt.

Net debt decreased by $88 million compared to June 30th 2009 and the ratio of net debt to EBITDA excluding specific items in the last twelve months decreased from 4.0x in the second quarter of 2009 to 3.5x in the third quarter of 2009.

Finally, through the Pulp & Paper Green Transformation Program of the Canadian Government, Cascades expects to receive $6.1 million in investment credits to apply against energy and environmental efficiency projects through March 31, 2012.

Near term outlook

-----------------

Mr. Alain Lemaire, President and Chief Executive Officer added: "Looking ahead to the fourth quarter, while we are encouraged by the recent improvement in demand and the relative stability of most of our selling prices, we expect lower volumes due to normal seasonality and planned maintenance downtimes. In addition, we anticipate slightly higher fibre and energy costs. We also remain cautious in regards to short term business conditions given the uncertain economic climate in North America."

Dividend on Common Shares and normal course issuer bid

------------------------------------------------------

The Board of Directors of Cascades declared a quarterly dividend of $0.04 per share to be paid December 18, 2009 to shareholders of record at the close of business on December 4, 2009. This dividend paid by Cascades is an "eligible dividend" as per the Income Tax Act (Bill C-28, Canada). In addition, in the third quarter of 2009, in accordance with its normal course issuer bid program, Cascades purchased 120,818 shares at an average price of $5.71. Since the beginning of the year, Cascades has purchased for cancellation 1,202,018 common shares at an average price of $2.48 per share representing an aggregate amount of approximately $3 million.

Supplemental information on non-GAAP measures

Operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income, cash flow from operations and cash flow from operations per share are not measures of performance under Canadian GAAP. The Company includes operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income, cash flow from operations and cash flow from operations per share because they are measures used by management to assess the operating and financial performance of the Company's operating segments. Additionally, the Company believes that these items provide additional measures often used by investors to assess a company's operating performance and its ability to meet debt service requirements. However, operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income, cash flow from operations and cash flow from operations per share does not represent, and should not be used as a substitute for net earnings or cash flows from operating activities as determined in accordance with Canadian GAAP, and they are not necessarily an indication of whether cash flow will be sufficient to fund our cash requirements. In addition, our definition of operating income before depreciation and amortization, earnings before interests, taxes, depreciation and amortization, operating income, cash flow from operations and cash flow from operations per share may differ from those of other companies. Cash flow from operations is defined as cash flow from operating activities as determined in accordance with Canadian GAAP excluding the change in working capital components and cash flow from operations per share is determined by dividing cash flow from operations by the weighted average number of common shares of the period.

Operating income before depreciation and amortization excluding specific items, earnings before interests, taxes, depreciation and amortization excluding specific items, operating income excluding specific items, net earnings excluding specific items, net earnings per common share excluding specific items, cash flow from operations excluding specific items and cash flow from operations per share excluding specific items are non-GAAP measures. The Company believes that it is useful for investors to be aware of specific items that have adversely or positively affected its GAAP measures, and that the above mentioned non-GAAP measures provide investors with a measure of performance with which to compare its results between periods without regard to these specific items. The Company's measures excluding specific items have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation.

Specific items are defined to include charges for impairment of assets, charges for facility or machine closures, debt restructuring charges, gains or losses on sale of business unit, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, foreign exchange gains or losses on long-term debt and other significant items of an unusual or non-recurring nature.

Net earnings (loss), which is a performance measure defined by Canadian GAAP is reconciled below to operating income (loss), operating income excluding specific items and operating income before depreciation excluding specific items or earnings before interests, taxes, depreciation and amortization excluding specific items:

-----------------------------

(in millions of Canadian dollars) Q3/2009 Q3/2008 Q2/2009

----------------------------------------------------------------- --------

Note 2 Note 2

Net earnings (loss) 34 (7) 30

Non-controlling interest - 1 -

Share of results of significantly

influenced companies (3) (2) (2)

Provision for (recovery of) income taxes 17 (2) 17

Loss on derivative financial instruments on

long-term debt - - 2

Foreign exchange loss on long-term debt 3 - 3

Interest expense 25 27 25

-----------------------------

Operating income 76 17 75

Specific items :

Loss on disposal and others - - 1

Impairment loss 1 - -

Closure and restructuring costs 5 4 3

Unrealized loss (gain) on financial

instruments (8) 13 (13)

-----------------------------

(2) 17 (9)

-----------------------------

Operating income - excluding specific items 74 34 66

Depreciation and amortization 53 54 55

-----------------------------

Operating income before depreciation and

amortization (OIBD) - excluding specific

items(1) 127 88 121

----------------------------------------------------------------- --------

----------------------------------------------------------------- --------

Note 1 - also refers to earnings before interests, taxes, depreciation

and amortization (EBITDA).

Note 2 - the 2008 results were restated following the retrospective

application of CICA handbook Section 3064

The following table reconciles net earnings and net earnings per share to net earnings excluding specific items and net earnings per share excluding specific items:

--------------------------- ---------------------------

(in millions of

Canadian dollars,

except amounts Net earnings (loss)

per share) Net earnings (loss) per share(1)

--------------------------------------------- ------------------- --------

Q3/2009 Q3/2008 Q2/2009 Q3/2009 Q3/2008 Q2/2009

--------------------------- ---------------------------

Note 2 Note 2 Note 2 Note 2

As per GAAP 34 (7) 30 $0.35 $(0.07) $0.30

Specific items :

Loss on disposal

and others - - 1 $ - $ - $ -

Impairment loss 1 - - $0.01 $ - $ -

Closure and

restructuring

costs 5 4 3 $0.03 $0.03 $0.02

Unrealized loss

(gain) financial

instruments (8) 13 (13) $(0.06) $0.10 $(0.09)

Loss on derivative

financial

instruments on

long-term debt - - 2 $ - $ - $0.02

Foreign exchange

loss on long-term

debt 3 - 3 $0.03 $ - $0.03

Tax effect on

specific items - (4) 2

--------------------------- ---------------------------

1 13 (2) $0.01 $0.13 $(0.02)

--------------------------- ---------------------------

Excluding specific

items 35 6 28 $0.36 $0.06 $0.28

--------------------------------------------- ------------------- --------

--------------------------------------------- ------------------- --------

Note 1 - specific amounts per share are calculated on an after- tax basis.

Note 2 - the 2008 results were restated following the retrospective

application of CICA handbook Section 3064

The following table reconciles cash flow from operations and cash flow from operations per share to cash flow from operations excluding specific items and cash flow from operations per share excluding specific items:

--------------------------- ---------------------------

Cash flow from operations

Cash flow from operations per share

--------------------------- ---------------------------

(in millions of

Canadian dollars,

except amounts

per share) Q3/2009 Q3/2008 Q2/2009 Q3/2009 Q3/2008 Q2/2009

--------------------------------------------- ------------------- --------

Cash flow provided

by operating

activities 117 22 82

Changes in

non-cash working

capital

components (23) 21 (1)

--------------------------- ---------------------------

Cash flow

(adjusted) from

operations 94 43 81 $0.96 $0.43 $0.83

Specific items :

Gains or losses

on disposals and

others - - 1 - - -

Closure and

restructuring

costs, net of

current income

tax 1 4 3 $0.01 $0.04 $0.04

--------------------------- ---------------------------

Excluding specific

items 95 47 85 $0.97 $0.47 $0.87

--------------------------------------------- ------------------- --------

--------------------------------------------- ------------------- --------

Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs close to 13,000 employees who work in more than 100 modern and flexible production units located in North America and Europe. Cascades' management philosophy, its 45 years of experience in recycling, its continued efforts in research and development are strengths which enable the company to create new products for its customers. The Cascades' shares trade on the Toronto stock exchange under the ticker symbol CAS.

Certain statements in this release, including statements regarding future results and performance, are forward-looking statements (as such term is defined under the Private Securities Litigation Reform Act of 1995) based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for the Company's products, increases in raw material costs, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in the Company's Securities and Exchange Commission filings.

Consolidated Balance Sheets

(in millions of Canadian dollars)

As at As at

September 30, December 31,

2009 2008

----------------------------

Assets (unaudited) (restated)

Current assets

Cash and cash equivalents 20 11

Accounts receivable 622 657

Inventories 525 580

----------------------------------------------------------------- --------

1,167 1,248

Property, plant and equipment 1,955 2,030

Intangible assets 159 149

Other assets 272 283

Goodwill 324 321

----------------------------------------------------------------- --------

3,877 4,031

----------------------------

----------------------------

Liabilities and Shareholders' Equity

Current liabilities

Bank loans and advances 79 104

Accounts payable and accrued liabilities 534 586

Current portion of long-term debt 10 36

----------------------------------------------------------------- --------

623 726

Long-term debt 1,501 1,672

Other liabilities 418 377

----------------------------

2,542 2,775

----------------------------------------------------------------- --------

Commitments and Contingencies

Shareholders' Equity

Capital stock 500 506

Retained earnings 745 656

Contributed surplus 13 9

Accumulated other comprehensive income 77 85

----------------------------

1,335 1,256

----------------------------------------------------------------- --------

3,877 4,031

----------------------------

----------------------------

Consolidated Statements of Earnings (Loss)

(in millions of Canadian dollars, except per share amounts)

(unaudited)

For the 3-month For the 9-month

periods ended periods ended

September 30, September 30,

2009 2008 2009 2008

------------------------------------------------

(restated) (restated)

Sales 974 1,039 2,925 2,997

Cost of sales and

expenses

Cost of sales (excluding

depreciation and

amortization) 752 854 2,254 2,502

Depreciation and

amortization 53 54 162 158

Selling and

administrative expenses 93 96 309 287

Losses on disposal and

others - - 1 5

Impairment and other

restructuring costs 6 4 14 20

Loss (gain) on

financial instruments (6) 14 (15) 6

----------------------------------------------------------------- --------

898 1,022 2,725 2,978

----------------------------------------------------------------- --------

Operating income from

continuing operations 76 17 200 19

Interest expense 25 27 77 77

Gain on purchases of

senior notes - - (14) -

Foreign exchange loss on

long-term debt 3 - 8 20

----------------------------------------------------------------- --------

48 (10) 129 (78)

Provision for (recovery

of) income taxes 17 (2) 39 (20)

Share of results of

significantly influenced

companies (3) (2) (10) (6)

Non-controlling interest - 1 (1) 2

----------------------------------------------------------------- --------

Net earnings (loss) from

continuing operations 34 (7) 101 (54)

Net earnings from

discontinued operations - - - 18

----------------------------------------------------------------- --------

Net earnings (loss) for

the period 34 (7) 101 (36)

----------------------------------------------------------------- --------

----------------------------------------------------------------- --------

Net earnings (loss) from

continuing operations

per common share

Basic $0.35 ($0.07) $1.03 ($0.54)

------------------------------------------------

------------------------------------------------

Diluted $0.34 ($0.07) $1.02 ($0.54)

------------------------------------------------

------------------------------------------------

Net earnings (loss) per

common share

Basic $0.35 ($0.07) $1.03 ($0.36)

------------------------------------------------

------------------------------------------------

Diluted $0.34 ($0.07) $1.02 ($0.36)

------------------------------------------------

------------------------------------------------

Weighted average basic

number of common

shares outstanding 97,430,683 98,727,291 97,781,928 98,873,025

------------------------------------------------

------------------------------------------------

Consolidated Statements of Shareholders' Equity

(in millions of Canadian dollars)

(unaudited)

For the 9-month period ended September 30,

2009

-------------------------------------------------

Accumu-

lated

other

Contri- compre- Share-

Capital Retained buted hensive holders'

stock earnings surplus income Equity

-------------------------------------------------

Balance - Beginning of

period 506 656 9 85 1,256

Comprehensive income:

Net earnings for the

period - 101 - - 101

Change in other

comprehensive income

(loss) - - - (8) (8)

---------

Comprehensive income for

the period 93

---------

Dividends - (12) - - (12)

Adjustment related to

stock options - - 1 - 1

Redemption of common

shares (6) - 3 - (3)

-------------------------------------------------

Balance - End of period 500 745 13 77 1,335

-------------------------------------------------

-------------------------------------------------

For the 9-month period ended September 30,

2008

-------------------------------------------------

(restated)

Accumu-

lated

other

compre-

Contri- hensive Share-

Capital Retained buted income holders'

stock earnings surplus (loss) Equity

-------------------------------------------------

Balance - Beginning of

period 509 724 8 (43) 1,198

Cumulative impact of

accounting changes - 3 - - 3

-------------------------------------------------

Restated balance -

Beginning of period 509 727 8 (43) 1,201

Comprehensive income:

Net loss for the

period - (36) - - (36)

Change in other

comprehensive income - - - 50 50

---------

Comprehensive income for

the period 14

---------

Dividends - (12) - - (12)

Redemption of common

shares (2) (1) - - (3)

-------------------------------------------------

Balance - End of period 507 678 8 7 1,200

-------------------------------------------------

-------------------------------------------------

Consolidated Statements of Comprehensive Income (Loss)

(in millions of Canadian dollars)

(unaudited)

For the 3-month For the 9-month

periods ended periods ended

September 30, September 30,

2009 2008 2009 2008

------------------------------------------------

Net earnings (loss) for

the period 34 (7) 101 (36)

------------------------------------------------

Other comprehensive

income (loss)

TRANSLATION ADJUSTMENTS

Change in foreign

currency translation

of self-sustaining

foreign subsidiaries (61) 9 (105) 52

Change in foreign

currency translation

related to hedging

activities 48 - 73 -

Income taxes (7) - (10) -

CASH FLOW HEDGES

Change in fair value of

foreign exchange

forward contracts

designated as cash

flow hedges 23 (7) 52 (10)

Change in fair value of

commodity derivative

financial instruments

designated as cash

flow hedges (1) - (2) 11

Income taxes (7) - (16) (3)

------------------------------------------------

(5) 2 (8) 50

------------------------------------------------

Comprehensive income

(loss) for the period 29 (5) 93 14

------------------------------------------------

------------------------------------------------

Consolidated Statements of Cash Flows

(in millions of Canadian dollars)

(unaudited)

For the 3-month For the 9-month

periods ended periods ended

September 30, September 30,

2009 2008 2009 2008

------------------------------------------------

(restated) (restated)

OPERATING ACTIVITIES FROM

CONTINUING OPERATIONS

Net earnings (loss) for

the period 34 (7) 101 (36)

Net earnings from

discontinued operations - - - (18)

----------------------------------------------------------------- --------

Net earnings (loss) from

continuing operations 34 (7) 101 (54)

Adjustments for

Depreciation and

amortization 53 54 162 158

Losses on disposal and

others - - 1 5

Impairment and other

restructuring costs 5 - 8 3

Unrealized loss (gain)

on financial

instruments (8) 13 (22) 6

Foreign exchange loss

on long-term debt 3 - 8 20

Gain on purchases of

senior notes - - (14) -

Future income taxes 12 (9) 11 (42)

Share of results of

significantly

influenced companies (3) (2) (10) (6)

Non-controlling

interest - 1 (1) 2

Others (2) (5) (1) (9)

Early settlement of

natural gaz contracts - (2) - 13

----------------------------------------------------------------- --------

94 43 243 96

Change in non-cash

working capital

components 23 (21) 23 (57)

----------------------------------------------------------------- --------

117 22 266 39

----------------------------------------------------------------- --------

INVESTING ACTIVITIES FROM

CONTINUING OPERATIONS

Purchases of property,

plant and equipment (52) (45) (124) (128)

Proceeds from disposal of

property, plant and

equipment - - 2 5

Decrease (increase) in

other assets (1) - (9) 2

Cash of a joint venture

and business

acquisitions (61) (1) (64) 5

----------------------------------------------------------------- --------

(114) (46) (195) (116)

----------------------------------------------------------------- --------

FINANCING ACTIVITIES FROM

CONTINUING OPERATIONS

Bank loans and advances (3) 18 (22) 13

Change in revolving

credit facilities 14 - (31) 22

Purchases of senior notes - - (18) -

Increase in other

long-term debt 2 1 27 1

Payments of other

long-term debt (3) (1) (8) (7)

Early settlement of

foreign exchange

contracts - - 8 -

Redemption of common

shares (1) (1) (3) (3)

Dividends (4) (4) (12) (12)

----------------------------------------------------------------- --------

5 13 (59) 14

----------------------------------------------------------------- --------

Change in cash and cash

equivalents during the

period from continuing

operations 8 (11) 12 (63)

Change in cash and cash

equivalents from

discontinued operations,

including proceeds on

disposal - 6 (3) 49

----------------------------------------------------------------- --------

Net change in cash and

cash equivalents during

the period 8 (5) 9 (14)

Translation adjustments

on cash and cash

equivalents - (7) - (2)

Cash and cash

equivalents - Beginning

of period 12 21 11 25

----------------------------------------------------------------- --------

Cash and cash

equivalents - End of

period 20 9 20 9

------------------------------------------------

------------------------------------------------

Selected Segmented Information

(in millions of Canadian dollars)

(unaudited)

For the 3-month For the 9-month

periods ended periods ended

September 30, September 30,

2009 2008 2009 2008

------------------------------------------------

Sales

Packaging products

Boxboard

Manufacturing 170 189 528 568

Converting 170 167 532 498

Intersegment sales (19) (24) (67) (74)

------------------------------------------------

321 332 993 992

Containerboard

Manufacturing 132 157 393 461

Converting 230 257 677 730

Intersegment sales (90) (96) (260) (281)

------------------------------------------------

272 318 810 910

Specialty products

Manufacturing 83 80 254 232

Converting 60 67 182 197

Recovery and deinked

pulp 70 102 193 295

Intersegment sales (18) (25) (60) (73)

------------------------------------------------

195 224 569 651

Intersegment sales (17) (28) (45) (81)

------------------------------------------------

771 846 2,327 2,472

Tissue papers

Manufacturing and

converting 210 205 628 559

Intersegment sales (7) (12) (30) (34)

----------------------------------------------------------------- --------

Total 974 1,039 2,925 2,997

----------------------------------------------------------------- --------

----------------------------------------------------------------- --------

Selected Segmented Information

(in millions of Canadian dollars)

(unaudited)

For the 3-month For the 9-month

periods ended periods ended

September 30, September 30,

2009 2008 2009 2008

------------------------------------------------

Operating income (loss)

before depreciation and

amortization from

continuing operations

Packaging products

Boxboard

Manufacturing 8 (8) 34 (24)

Converting 14 15 42 39

Others - (1) (3) (11)

------------------------------------------------

22 6 73 4

Containerboard

Manufacturing 20 13 81 40

Converting 22 15 40 46

Others - (5) (5) (2)

------------------------------------------------

42 23 116 84

Specialty products

Manufacturing 8 5 28 4

Converting 7 8 18 21

Recovery and deinked

pulp 6 7 12 18

Others - 1 (2) 1

------------------------------------------------

21 21 56 44

------------------------------------------------

85 50 245 132

Tissue papers

Manufacturing and

converting 38 22 119 48

Corporate 6 (1) (2) (3)

----------------------------------------------------------------- --------

Operating income before

depreciation and

amortization from

continuing operations 129 71 362 177

----------------------------------------------------------------- --------

----------------------------------------------------------------- --------

Depreciation and

amortization (restated) (restated)

Boxboard (19) (18) (57) (52)

Containerboard (16) (16) (48) (47)

Specialty products (8) (9) (25) (25)

Tissue papers (9) (9) (27) (26)

Corporate and

eliminations (1) (2) (5) (8)

------------------------------------------------

(53) (54) (162) (158)

------------------------------------------------

Operating income from

continuing operations 76 17 200 19

----------------------------------------------------------------- --------

----------------------------------------------------------------- --------

Selected Segmented Information

(in millions of Canadian dollars)

(unaudited)

For the 3-month For the 9-month

periods ended periods ended

September 30, September 30,

2009 2008 2009 2008

------------------------------------------------

Purchases of property,

plant and equipment

Packaging products

Boxboard

Manufacturing 7 7 20 14

Converting 9 7 21 23

------------------------------------------------

16 14 41 37

Containerboard

Manufacturing 3 6 10 10

Converting 3 4 7 15

------------------------------------------------

6 10 17 25

Specialty products

Manufacturing 2 2 5 5

Converting 2 - 4 3

Recovery and deinked

pulp 2 9 14 19

------------------------------------------------

6 11 23 27

------------------------------------------------

28 35 81 89

Tissue papers

Manufacturing and

converting 11 7 26 25

Corporate 12 1 14 5

----------------------------------------------------------------- --------

Total 51 43 121 119

----------------------------------------------------------------- --------

----------------------------------------------------------------- --------

Purchases of property,

plant and equipment

included in accounts

payable

Beginning of period 12 10 14 17

End of period (11) (8) (11) (8)

----------------------------------------------------------------- --------

Total investing

activities 52 45 124 128

----------------------------------------------------------------- --------

----------------------------------------------------------------- --------

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