Fraser Papers Begins June Maintenance Outages

Toronto, Ontario, Canada --(CCN Matthews)-- Fraser Papers Inc. (TSX:FPS) East Papers Operation will commence a 21-day major maintenance outage at its Edmundston, New Brunswick, sulfite pulp mill on 02 June 2007, to make repairs to the recovery boiler.

Certain key projects have been contracted on a fixed price, turn-key basis with original equipment manufacturers. Total capital spending of CAD 9.5 million has been budgeted for this maintenance.

"This is a major initiative for our business that has been one year in planning and is designed to bring our integrated pulp mill back to its full capacity of 700 tons per day of pulp," commented Peter Gordon, president and CEO of Fraser Papers. "Throughput in the first quarter of this year averaged only 660 tons per day and resulted in the paper mill purchasing pulp at higher cost to meet production requirements. Based on current market prices for purchased pulp, we estimate that this project, once completed, will have a positive impact on our results in excess of CAD 3 million per annum."

Integrated paper operations located in Madawaska, Maine, USA, will also be affected during this period. Six of eight paper machines will take downtime for an eight-day period when annual maintenance will be completed. The remaining two paper machines will be shut for one additional week due to weak markets for coated groundwood papers and certain other coated grades.

Fraser Papers is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers. The company has operations in New Brunswick, Maine, New Hampshire, and Quebec. Fraser Papers is listed on the Toronto Stock Exchange under the symbol: FPS. For more information, visit the Fraser Papers Web site at www.fraserpapers.com.