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Cascades Inc.
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Kingsey, Quebec, Canada, 05 March 2010 — Cascades Inc. (CAS on the Toronto Stock Exchange), a leader in recovery and in green packaging and tissue paper products, announced today the commencement of a consent solicitation in respect of its 7¼% senior notes due 2013 (CUSIP No. 146900AC9) and its 6¾% senior notes due 2013 (CUSIP No. 65542NAJ6) (together, the “notes). The consent solicitation is being made pursuant to the consent solicitation statement dated 05 March 2010 and the related letter of consent.
 
Upon the terms and subject to the conditions described in the consent solicitation statement and the letter of consent, Cascades is offering holders a consent fee of CAD 7.50 cash per CAD 1000 principal amount of notes to consent to amendments to each of the indentures governing the notes which, among other things, eliminated substantially all of the restrictive covenants in the indentures and modified or eliminated certain events of default. The solicitation expires at 5:00 p.m. on 18 March 2010.
 
Cascades previously received the requisite consents from holders of notes outstanding under each indenture. The effective amendments were adopted by Cascades on 26 February 2010, and the trustee under each indenture entered into a supplemental indenture with Cascades and the subsidiary guarantors to give effect to the amendments as of such date. The effective amendments are and will remain binding upon all holders of notes regardless of whether such holders consent to the effective amendments, however, holders will receive the consent fee only if they validly deliver consents pursuant to the consent solicitation. Cascades is soliciting consents to the effective amendments to satisfy its obligation under each indenture to offer to all holders the same consideration that was paid to the holders that previously consented to the effective amendments.
 
Cascades is not tendering for any notes pursuant to the consent solicitation, however, as soon as practicable following the expiration of the consent solicitation, Cascades, through its wholly-owned subsidiary, Cascades Tenderco Inc., intends to offer to purchase for cash any and all of Cascades' 7¼% notes for consideration of CAD 1010 per CAD 1000 principal amount of 7¼% notes and Cascades' 6¾% notes for consideration of CAD 1022.50 per CAD 1000 principal amount of 6¾% notes, in each case the same amount paid to certain holders that previously consented to the effective amendments. As of 04 March 2010, all but CAD 10,125,000 aggregate principal amount of 7¼% notes and CAD 11,661,000 aggregate principal amount of 6¾% notes were owned by Cascades or its affiliates (including Cascades Tenderco Inc.).
 
Cascades has retained Global Bondholder Services Corporation to serve as the consent agent for the solicitation. Requests for documents and questions regarding the consent solicitation may be directed to Global Bondholder Services Corporation at (866) 470-3800 (toll free) or (212) 430-3774 (banks and brokers).
 
Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibers. Cascades employs close to 12,500 employees who work in more than 100 production units located in North America and Europe. Cascades' management philosophy, its 45 years of experience in recycling, and its continued efforts in research and development are strengths which enable the company to create new products for its customers. Cascades' shares trade on the Toronto stock exchange under the ticker symbol CAS.


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