FPInnovations, Kruger dedicate cellulosic filament plant

June 17, 2014, Trois Rivières, Que. – FPInnovations and Kruger
Inc. today dedicated the world's first cellulose filament (CF) demonstration
plant at Kruger's Trois-Rivières Mill.

The five ton/day plant will provide enough CF tonnage to
permit commercialization and application development. CF is a new material
extracted from wood pulp fibres that is revolutionary because of its unique properties.
CF has major potential for Canada's forest sector because of its wide range of
applications from existing paper products to new products.  The nature of CF allows it to be combined
with many materials to develop a wide range of high-value products currently
sought after by many Canadian and international industry sectors and is
expected to contribute significantly to the Forest Products Association of
Canada (FPAC)'s Vision 2020 ambitious economic objectives.

"This demonstration plant is a great example of how
collaboration and strategic investment in research and development can lead to
the development of innovative new products that will transform the pulp and
paper industry while supporting traditional markets," said FPInnovations'
president and CEO Pierre Lapointe. "The inauguration of this facility
places Canada in the pole position of global competition to develop the next
generation of cellulose-based materials."

"Kruger has been innovating for 110 years and it is
with great pride that we are celebrating the dedication of this demonstration
plant that promotes a technology of the future," said Daniel Archambault,
executive vice president and COO, Industrial Products Division, Kruger.
"The unique potential of cellulose filaments, combined with our R&D
efforts, will help the Canadian forest industry progress and have a bright
future."

An intensive concurrent R&D program will support the
industrial scale up for applications in different commercial pulps, papers,
packaging, tissues and towels, as well as thermosets, thermoplastics, coatings,
construction panels and non-wovens.

This groundbreaking research and innovation project
represents investments to date totaling $43.1 million, including funding from
Natural Resources Canada, through the Investments in Forest Industry
Transformation (IFIT) Program, as well as a grant from Québec's Ministry of
Forests, Wildlife and Parks, a loan from Investissement Québec, financial
backing from the Government of British Columbia, a contribution from Kruger Inc.
and funds from FPInnovations' pulp, paper and bioproducts industry members.