PaperlinX Acquires Cascades Resources

On February 28, 2006, PaperlinX Limited, via its PaperlinX Canada Limited subsidiary, acquired Cascades Resources, the Canadian paper merchanting business of Cascades Fine Papers Group Inc., a subsidiary of Cascades Inc., for approximately C$81 million subject to certain adjustments.

PaperlinX is the world's leading fine paper merchant and Australia's principal manufacturer of quality communication and packaging paper. Founded in 1964, Cascades produces, transforms and markets packaging products, tissue papers and fine papers, composed mainly of recycled fibres.

PaperlinX was represented by Stikeman Elliott LLP with a team that included John Leopold, Michel Gélinas, Jonathan Melmed, Michael Szlamkowicz and Christopher Dye (corporate), Robert Hogan, Marie-Andrée Beaudry and Jean-Guillaume Shooner (tax), Shawn Neylan, Michael Mahoney and Kevin Rushton (competition), Patrick Essiminy (employment and labour), Michel Legendre (pensions and benefits), Valérie Mac-Seing (real estate) and Jean Carrier and Myriam Fortin (environment). PaperlinX was also represented by Donald Affleck, Q.C., and Michael Osborne of Affleck Greene Orr LLP with respect to competition matters.

Cascades Inc. and Cascades Fine Papers Group Inc. were represented by Robert Hall, vice-president legal affairs and corporate secretary, Cascades Inc., and Louise Paul, assistant-secretary, Cascades Inc., and legal counsel and corporate secretary, Cascades Fine Papers Group Inc., and by Fraser Milner Casgrain LLP with a team that included Charles Spector, Neil Katz, Philipp Park and Sacha Haque (corporate) and Robert Béland (real estate). Cascades was also represented by Richard Epstein and Laurent Vanier-Levac of BCF LLP with respect to competition matters.