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Cascades Sells Its Paper Merchant Division

Press release from the issuing company

Kingsey Falls, Québec, November 17, 2005 - Cascades Inc. announces that it has reached an agreement for the sale of its paper merchant division known as Cascades Resources, a Division of Cascades Fine Papers Group Inc., to Coast Paper Limited, a subsidiary of PaperlinX Limited, for a purchase price of approximately $CA85 million. Cascades expects to complete this transaction by year end subject to regulatory approval and other normal closing conditions. In commenting on this transaction, President and CEO of Cascades, Mr. Alain Lemaire, stated “The sale of Cascades Resources represents another important step towards our stated goal of concentrating our activities in our two core areas of packaging and tissue. We are particularly pleased to have been able to reach an agreement with PaperlinX, an internationally recognized leader in the distribution of fine paper and graphic arts, as Cascades Resources will continue to be an important customer of our fine paper mills within the broader PaperlinX family.” The proceeds of the sale will be applied to reducing short term debt.