Richmond, British Columbia, Canada, 25 February 2009 – Catalyst Paper (TSX:CTL) today announced that it will indefinitely curtail pulp production at its Crofton kraft mill due to the decline in market demand. The curtailment will remove approximately 400,000 metric tons of annual pulp capacity and affect approximately 375 employees.

In a related move, a five-week curtailment of the Elk Falls No. 2 and No. 5 paper machines which was to end 31 March has been extended indefinitely, affecting approximately 350 employees for the duration of the market-related downtime. The indefinite curtailment of all three paper machines at the Elk Falls mill removes 526,000 metric tons of newsprint and uncoated mechanical paper capacity on an annualized basis.

“The rapid decline in North American newsprint consumption is unprecedented,” said Richard Garneau, president and chief executive officer, “and it requires us to focus sharply on cost management as we optimize production across our mills to match capacity with the order book.”

Catalyst is the largest producer of specialty printing papers and newsprint in western North America. The company also produces market kraft pulp and owns western Canada’s largest paper recycling facility. The company’s six mills have a combined annual production capacity of 2.5 million metic tons. Catalyst is headquartered in Richmond, British Columbia, Canada, and its common shares trade on the Toronto Stock Exchange under the symbol CTL.