Fraser Papers Announces Temporary Shutdown of Sawmill

Toronto, Ontario, Canada, 24 August 2007 --(Marketwire)-- Fraser Papers Inc. (TSX:FPS) announced today the temporary shutdown of its 130 MMfbm dimension lumbermill in Juniper, New Brunswick, for up to 11 months, effective 05 October 2007.

Weak housing markets in the United States, continued oversupply of lumber, and a strong Canadian dollar have contributed to unsustainable operating losses at the mill over the last 12 months. In addition, reduced logging activity in recent months has significantly reduced the supply of wood from private lands. The company expects that these conditions will persist into 2008. The shutdown will affect approximately 175 employees at the mill.

"Despite significant efforts by our employees to minimize costs and improve operations, we have been absorbing significant cash losses at our Juniper sawmill," commented Peter Gordon, president and CEO of Fraser Papers. "As a result, we have made the difficult decision to close the Juniper mill for up to 11 months and look outside the company for an alternate and lower cost supply of woodchips and biomass during that time period for our integrated specialty paper operations located in Edmundston, New Brunswick, and Madawaska, Maine."

During the shutdown, Fraser Papers has secured an alternate woodchip and biomass fuel supply for its sulfite pulp mill in Edmundston. The company will continue to use its Crown Lands Service Agreement with Acadian Timber Income Fund (TSX:ADN.UN) to harvest its Crown allocation.

Fraser Papers is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers. The company has Canadian operations in New Brunswick and and Quebec, and U.S. operations in Maine and New Hampshire. 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.