Kingsey Falls Quebec, Canada, 29 October 2007 -- /PRNewswire/ -- Cascades Inc. (CAS-TSX) announced today that shareholders of Reno De Medici S.p.A. approved the proposed merger of Cascades S.A.'s recycled boxboard business and Reno De Medici S.p.a. at an extraordinary general meeting of shareholders held for that purpose today. The transaction is expected to be completed at the beginning of January 2008 and is subject to approval by the appropriate competition authorities.

The planned combination will offer a unique portfolio of production assets for all of Europe, presenting a combined annual capacity of more that 1100 kT. This merger will thus result in an operationally and financially stronger company that will be better able to respond to the demands of global customers.

About Cascades Inc and Cascades S.A.

Founded in 1964, Cascades produces, transforms, and markets packaging and tissue products composed mainly of recycled fibers. Cascades employs nearly 14,000 men and women who work in some 100 modern and flexible production units located in North America and in Europe. Cascades' management philosophy, its more than 40 years of experience in recycling, and its continued efforts in research and development are strengths that enable the company to create innovative products for its clients. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.

Cascades S.A. is a European division of Cascades Inc. It includes primarily four virgin and recycled fiber manufacturing boxboard mills in France, Germany, and Sweden, a sheeting operation in England, and an overall active sales structure in Europe.

About Reno De Medici SpA

Reno De Medici produces, transforms, and markets cartonboard. Reno De Medici employs more than 1100 employees and conducts its activities through subsidiaries based in Italy, France, Spain, and Germany. Reno De Medici is listed on the Milan and Madrid stock exchanges.

Source: Cascades, Inc.