<b>Kruger Invests at Quebec Mill</b>

Kruger announced an investment of $78 million at its Bromptonville mill to improve the quality of paper and reduce production costs. This project will consolidate the 470 jobs at the mill.

"This new investment, which constitutes the 2nd phase in a $125 million modernization program, demonstrates our confidence in the future of the Bromptonville mill," said Bernard Routhier, executive vice president - Operations for Kruger. "It will enable us to improve our position as a leader in finished product quality," he added. This investment is aimed at improving equipment in the deinking plant in order to use a wider variety of recycled fiber and diminish the impact of frequent increases of this raw material on the mill's production costs. It will also allow the mill to increase its capacity to generate steam and electricity at low cost from solid residue produced in the mill and surrounding area.