Cascades to Close Two Facilities

Montreal, Quebec, August 25, 2006–Cascades Inc., said it will close one of two mills which make backing for vinyl flooring in France at the end of October.

The company said the Cascades Ste-Marie mill in Boissy le Chatel employs 34 people and was acquired in 1999.

Cascades said the closure will not result in any material losses or write-downs, and certain assets may be transferred to its Cap-de-la-Madeleine operation in Quebec.