<B>Fletcher Challenge Idling Three Mills this Year</B>

Fletcher Challenge Canada's three pulp mills will reduce capacity by 25,000 metric tons by the end of this year. The company will consider further curtailments should market conditions warrant.

The company pushed scheduled maintenance shutdowns to this period in order to run earlier in the year at maximum production capacity when demand for market pulp was strong. The production curtailment comes at an opportune time given current destocking by many pulp customers.

The Mackenzie pulp mill will reduce capacity by some 6,000 metric tons by slowing back below-rated capacity. This is a preferable curtailment option as a complete shutdown of the Mackenzie mill could be problematic during winter weather conditions. In addition, Mackenzie took a 14-day maintenance shutdown in September, effectively reducing production by approximately 9,500 metric tons.

The Crofton pulp mill will combine a planned maintenance shutdown this month with a further curtailment in November to reduce capacity by more than 10,000 metric tons. The Elk Falls pulp mill will reduce capacity by more than 9,000 metric tons by extending a planned maintenance shutdown in November.

The company will continue to monitor order files and inventory levels to assess the need for further capacity reductions.