Kingsey Falls, Quebec, Canada, 24 August 2006 -- /PRNewswire/ -- Cascades will close one of its two mills that produce backing for vinyl flooring within the Specialty Products Group. The Cascades Ste-Marie S.A.S. mill, located in Boissy le Chatel, France, will close by the end of October 2006. It was acquired in 1999 and employs 34 people.

Commenting the news, Mario Plourde, president and chief operating officer of the Cascades Specialty Products Group said "We've been confronted over the last few years with decreasing demand for backing for vinyl flooring. In light of these circumstances and given our intent to serve our customers in the best possible manner, we came to the conclusion that it would be better to regroup all of our activities relating to this type of manufacturing in North America. We are confident that with the help of our employees and suppliers we will be able to maintain our reputation as a quality producer while differentiating ourselves as one of the only manufacturers in the world of this type of product."

This closure will have little effect on Cascades' overall operations and will not result in any material losses or write-downs. In addition, Cascades expects that certain assets may eventually be transferred to its Cap de la Madeleine, Quebec, operation.

Founded in 1964, Cascades produces, transforms and markets packaging products, tissue paper and fine papers, composed mainly of recycled fibers. Cascades employs nearly 14,300 men and women who work in some 120 modern and flexible production units located in North America, in Europe, and in Asia. Cascades' management philosophy, its more than 40 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.

Source: Cascades Inc.