<b>Cascades Restructuring Operations to Improve Growth</B>

Cascades Inc. and its subsidiaries Paperboard Industries International Inc., Perkins Papers Ltd. and Rolland Inc. announce that Cascades is proposing to restructure the Cascades Group for the purpose of achieving a better valuation of the.

The proposed restructuring calls for the exchange of common shares of its subsidiaries, Paperboard, Perkins and Rolland held by the public for common shares of Cascades.

The terms of the restructuring Cascades is proposing that: shareholders of Paperboard other than Cascades receive 0.24 common shares of Cascades for each common share of Paperboard; shareholders of Perkins other than Cascades receive 0.60 common shares of Cascades for each common share of Perkins; and shareholders of Rolland other than Cascades receive 0.73 common shares of Cascades for each common share of Rolland.

The proposed transaction would not affect Boralex Inc. and Norampac Inc.

In commenting on the proposed restructuring, Mr. Laurent Lemaire, President and CEO of Cascades, stated: ``The corporate structure of the Cascades Group which was put in place over the past ten years has allowed us to achieve rapid growth. However, the market capitalization of our Subsidiaries, which is relatively small in each case, and the low volume of trading make it difficult to use the shares of these corporations to finance growth. To remedy this we are proposing to group these companies under the umbrella of one public company, Cascades, that would serve to finance growth in each of our principal business sectors being packaging, tissue and fine papers. By doing this, we think Cascades would become the investment of choice in the pulp and paper industry in Canada, increasing the number of shares available to the public by close to 40%. At the same time Cascades would simplify its corporate structure and eliminate a significant discount associated with the existing corporate structure.''

This transaction would have little or no effect on the operations of the corporations involved and will not result in any reduction of personnel. Each of Cascades and the Subsidiaries will maintain their respective head and administration offices in their present locations.