Standard Poor's upgrades Cascades' outlook

KINGSEY FALLS, QC, Sept. 2 /PRNewswire-FirstCall/ - Cascades Inc. (CAS on the Toronto stock exchange), a leader in recovery and in green packaging and tissue paper products, wishes to highlight the recent decision by Standard Poor's rating agency to upgrade the outlook related to Cascades' corporate credit rating from negative to stable. Standard Poor's also reaffirmed Cascades' corporate credit and other debt instrument ratings.

Commenting the news, Mr. Alain Lemaire, president and CEO stated: "We are pleased to observe that one of the main rating agencies has recognized the steady improvement in our results and financial situation over the past twelve months. Building on this good news, we will continue to carefully manage our cash flows and to focus on improving our financial flexibility in the coming quarters."

For the full press release from Standard Poor's, please refer to the following link: http://www2.standardandpoors.com/portal/site/sp/en/ca/page.article/2,1,1,3,1204849790709.html

Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs close to 13,000 employees who work in more than 100 modern and flexible production units located in North America and Europe. Cascades' management philosophy, its 45 years of experience in recycling, its continued efforts in research and development are strengths which enable the company to create new products for its customers. The Cascades' shares trade on the Toronto stock exchange under the ticker symbol CAS.

Certain statements in this release, including statements regarding future results and performance, are forward-looking statements (as such term is defined under the Private Securities Litigation Reform Act of 1995) based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for the Company's products, increases in raw material costs, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in the Company's Securities and Exchange Commission filings.

SOURCE CASCADES INC.