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June 2006

Cascades, Inc. acquires box board plant

Kingsey Falls, Québec— Cascades Inc. announced that it has entered into an agreement with Caraustar Industries, Inc. (Caraustar) to acquire the assets of Caraustar’s coated recycled board mill located in Sprague, Connecticut for a total purchase price of $14.5 million US. Closure of this transaction is subject to the approval of the environmental authorities of the State of Connecticut. The parties anticipate these formalities will be completed within a month.

The Sprague mill is a manufacturing facility with an annual production capacity of close to 180,000 short tons which represents an estimated 7% of the North-American coated recycled boxboard manufacturing capacity. Concurrently with the signature of the purchase agreement the parties also signed a 5 year board supply agreement pursuant to which Cascades will supply annually 30,000 short tons of coated recycled board to Caraustar’s folding carton plants.

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