Kingsey Falls, Québec, Canada, 31 August 2009 — Cascades Inc., a leader in recovery and in green packaging and tissue paper products, has completed the acquisition of the tissue division of Atlantic Packaging Products Ltd.

The estimated value of the transaction is approximately CAD 60 million. This acquisition will enable Cascades to increase its annual production capacity by 55,000 short tons of recycled paper and its converting capacity by approximately 70,000 short tons, adding close to CAD 100 million in sales per year.

According to Suzanne Blanchet, president and chief executive officer of Cascades Tissue Group, “This transaction will enable us to further the development of the Cascades Enviro100% recycled brand, particularly in central and western Canada, by bringing us closer to our customers who are located west of Québec.”

In commenting on the transaction, Alain Lemaire, president and chief executive office, stated, “This acquisition allows us to further consolidate our position as a leader in the development of environmentally responsible products. Atlantic Packaging Products Ltd. has been using recycled fibers to manufacture its products for many years. Building on this experience, Cascades will ensure that its environmentally sound principles are applied to existing processes, namely, with regards to green chemistry and minimal consumption of water and energy.”

Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibers. Cascades employs nearly 13,000 men and women who work in some 100 modern and flexible production units in North America and in Europe. The Cascades shares trade on the Toronto Stock Exchange under the ticker symbol CAS.