Catalyst Announcement

February 13, 2008

Catalyst approves $12M capital project at Port Alberni mill
Vancouver, BC – Catalyst Paper (TSX:CTL) announced a $12 million capital upgrade and the restart, by mid-year, of the No. 4 paper machine at its Port Alberni mill. The investment in the mill’s thermo-mechanical pulp facility and restart of the machine was approved by the company’s Board of Directors today. The Board also approved a $14 million early retirement and severance package associated with a new labour agreement.
This step follows months of discussions with community and local union leaders on actions required to improve the mill’s business climate and cost competitiveness.
“The two union locals – CEP 592 and 686 – are to be commended for reaching a landmark agreement that puts in place modern work practices and brings labour costs to competitive industry levels,” said Richard Garneau, president and chief executive officer of Catalyst Paper. “Knowing we have the support of our employees means we can move forward with the thermo-mechanical capacity increase project and return to a two-machine mill, with a significantly improved cost structure.”
Catalyst indefinitely curtailed PM4 – its highest cost machine – on September 1, 2007. This followed repeated appeals to major stakeholders to change business conditions, including bringing the mill’s property taxes in line with competitive jurisdictions. As the city’s largest taxpayer, the Catalyst paper mill paid $7.1 million in 2007, approximately three times the Canadian average and more than twice the BC average in property tax per tonne.
Port Alberni’s city council has approved a gradual reduction of major industry property taxes over five years.
“We acknowledge this is a first step, but we remind civic leaders that to be competitive today, our annual municipal tax bill in Port Alberni should be $2 million less than it is now,” Mr. Garneau said. “We are looking to senior levels of government to also act on this critical tax issue to help municipalities improve the hosting conditions to attract industries.”
Catalyst is a leading producer of mechanical printing papers in North America, headquartered in Richmond, British Columbia. The company also produces market kraft pulp and owns Western Canada’s largest paper recycling facility. With five mills at sites within a 160-kilometre radius on the south coast of BC, Catalyst has a combined annual capacity of 2.4 million tonnes of product. Catalyst’s common shares trade on the Toronto Stock Exchange under the symbol CTL.
For more information:
Lyn Brown
Vice-President, Corporate Relations
604-247-4713

#4 PM Start Up Announcement

This is just copied and pasted from a PDF format.

February 13, 2008
Port Alberni Division set to start up PM4
We are pleased to announce the approval of a new agreement between Catalyst Paper, Port Alberni Division and CEP Locals 592 and 686. On the basis of this landmark agreement, the Catalyst Board of Directors also approved the CTMP expansion project today, which will allow the new agreement to take effect and PM4 to start up by mid-year.
This landmark agreement is instrumental in ensuring that Port Alberni Division will be a low cost producer of LWC and telephone directory papers. The CTMP expansion project will now proceed with an expected completion in 16 months. Early retirement packages will also proceed according to the previously announced schedules.
In approving this initiative, the Board commended the executives and membership of CEP Local 592 and CEP Local 686 for the commitment and leadership taken in working with the company to achieve a breakthrough agreement. The support of the City in taking a first step to reduce the mill’s municipal tax burden was also acknowledged as an important first step in helping the mill reach a more competitive, low-cost structure over the long-term.
We are all looking forward to working together in the cooperative spirit of this agreement to achieve a safe, long-term, viable two machine operation at Port Alberni Division.
Catalyst Paper: CEP Local 592: Local 686:
Ron Buchhorn Pete Rayburn Roy Plotniko
Sr. Vice President, Operations President President
Kim Pedersen Darryl DeRooy Tom Burton
Director, Operations Wage Delegate 1st Vice President
Dale Shimell Phil Guild Brian Hamelin
Manager, Mtce. & Eng. Wage Delegate Wage Delegate
Krista Tremblay
HR Advisor

Board of Directors Meeting Update

Some of you may have already heard this in the mill today, but the President phoned me and asked if I would relay the information concerning the Board of Directors meeting.

The Board was presented with the agreement and indicated that a decision would be made tomorrow (Wednesday) morning. Pete said that they told them they wouldn't leave Vancouver until a decision was made and so he has remained in Vancouver, as has the management group (I believe) and Roy Plotniko, 686 President. Pete said that CEO Richard Garneau came and saw the Alberni group and told them this was just a formality.

So, whether you are supportive of this deal or not, we should finally have an answer sometime tomorrow.

In solidarity,

Tim

Catalyst Buys Snowflake Mill

I was going to post this in the Forward Look, but at the request of the commenter in the post below, here are a couple of links to the news reports regarding Catalyst Paper's purchase of the AbitibiBowater Snowflake mill.

Catalyst pays US$161M for AbitibiBowater Snowflake mill, plans rights offering

Catalyst to buy AbitibiBowater's Snowflake mill

And thanks to Tyee, who sent me the links.

In solidarity,

Tim

Revised February Forward Look Publishing Date

Due to the change in date of the Executive Meeting, the Forward Look for February will not be online until sometime Friday morning.

Thanks for your patience.

In solidarity,

Tim

February Forward Look Articles

Just a reminder that any articles for the February issue of the Forward Look are past due. Currently I have received no submissions, however, the Executive Meeting has been rescheduled to Wednesday so in order to have articles printed out for Executive review I need them in my inbox by 4:30 Tuesday at the latest and preferably by the same time on Monday.

Just send them to tpthompson@gmail.com and put Forward Look in the subject line.

Thanks.

In solidarity,

Tim

Executive Board Appointments

As many of you know, we had intended to hold nominations at last months General Meeting for some vacant positions on the Executive Board. Unfortunately we did not have a quorum so we were unable to conduct business. As such, I decided to exersize the option of appointing willing candidates to some of the vacant positions.

Brent Hamelin has stepped up to the plate and has been appointed Area Vice President (Operations). A very big thanks go to Brent for taking on this responsibility. Its going to be a very busy year and I'm sure Brent will do a great job. Brent's pager #286. Please go easy on him for the first little while. We don't want to scare him away!

Norm Skipsey has taken on the role of Financial Secretary. Norm has been on the Executive for a number of years in various positions and most recently as the Senior Trustee. Norm has been closely involved in the finances of the local as a trustee and will do a great job in his new duties as well. (He's cheap)

At this time there is still one vacancy left, a first year trustee. I have approached a few people and am awaiting their decision.

Pete Rayburn