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CATALYST POSTS LOSS,REMAINS POSITIVE

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VANCOUVER,BC - As was the case for most North American pulp and paper companies,it was a difficult quarter for Catalyst Paper.Citing the "drag of the Canadian dollar," the company posted an us8 million loss,compared to earnings of us34.2 million for last year's corresponding quarter.Costs associated with the name change from Norske Canada to Catalyst Paper,compounded by higher legal and auditing costs also factored into the loss.

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