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Cascades Pays the Price for Reduced Water Consumption
Kingsey Falls, Québec, Canada, 19 June 2007 — In accordance with the decision rendered by the Court of Québec, Cascades Fine Papers Group Inc., Breakey Fibres Division (Cascades) will pay a CAD 45,000 fine and an additional CAD 80,000 to the Environmental Damages Fund, which serves to protect or rehabilitate fish habitat in streams in Quebec.

This decision is the result of difficulties encountered by Cascades in meeting certain control tests (trout toxicity), applicable under the provisions of the Fisheries Act, on effluent from its deinked pulp mill in Breakeyville, Québec, in 2003, 2004, and 2005.

Since then, Cascades has been able to control its effluent and is in full compliance of all its effluent discharge.

"Cascades deplores the fact that the trout toxicity test does not take into account the quantities of water used to manufacture pulp and paper, which penalizes the mills that strive to reduce their consumption. A mill that consumes less water discharges less effluent. When effluent is toxic, within the intent of the law, it has much less impact on the environment, in light of its low flow rate," said Léon Marineau, vice-president, Environment at Cascades. "Thus, for Cascades, where reduced water consumption is a priority (Cascades uses seven times less water than the industry average), we run the risk of failing the test without hurting the environment, he underlined."

Since 1999, Cascades has attempted to have Environment Canada recognize its efforts in the reduction of water consumption. The trout toxicity test was developed in the 1980s, at a time when water conservation was less of a preoccupation than it is today. Cascades has proposed that this test be adapted to new challenges facing the paper industry, namely, reducing water consumption through this energy consumption and greenhouse gas emissions.

Founded in 1964, Cascades produces, transforms, and markets packaging and tissue products composed mainly of recycled fibers. Cascades employs close to 14,000 employees who work in more than 100 modern and flexible production units located in North America and Europe. Cascades' management philosophy, its more than 40 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. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.


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