Michelle:
Thanks for taking a look at this memo that Andre Sarasin of Papiers Stadacona would like to send out to his employees today. Please note that this will be issued in French, so this English translation is not perfect...but it least it gets the main message across. Please let me know what you think--both Peter and Cheryl have approved this. 

Thanks,
Jennifer
x3-9964

The management of Papiers Stadacona met yesterday and this morning the union representatives as well as the staff personnel to answer their questions concerning Papiers Stadacona's situation and its owner's.

Mr. Sarasin repeated that the activities of Papers Stadacona are profitable and he has the conviction that it is in the interest of all parties concerned to continue the operations of Papers Stadacona and the Quebec Mill.

In several circumstances during the last quarter of century, the different owners of our company have had financial difficulties and, in every case, the Quebec Mill continued to operate for the simple reason that it is profitable. Mr. Sarasin believes that the present situation is no exception to the rule.

On the other hand, concerning questionings on the pension plan of employees, we are to be reminded that these funds are completely independent from the Company. Indeed, these are placed in trust with the Royal Trust and no creditor can have access to these funds.

The current situation can evolve quickly, but whatever is the result, our strategy is to fill our obligations, i.e. to make papers and board of quality, to control our costs and to continue to improve our productivity and the efficiency of our mill.