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Fraser Papers to Raise Prices on Specialty Paper Products

Fraser Papers Inc. ("Fraser Papers" or the "Company") (TSX: FPS) announced today that it has increased the selling price for certain of the Company's specialty packaging and printing grades. The average increase of 6% affects thermal base papers, pressure sensitive papers and packaging products. Price increases will be applied to all shipments after December 9, 2007.

"We are continuing to make significant improvements in productivity and reduce controllable costs. However, the unprecedented rise in raw material and energy costs has made these price increases necessary," commented Brian McAlary, Vice President, Sales and Marketing for Fraser Papers.

These price increases follow already announced price increases in the Company's lightweight printing and specialty groundwood product lines.

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

Note: This press release contains forward-looking information and forward-looking statements within the meaning of Canadian provincial securities laws. These forward-looking statements include, among others, statements with respect to applying price increases, productivity improvements and cost reductions. The words "will", "continue" and other expressions which may be predictions of or indicate future events and trends, and which do not relate to historical matters, identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause pricing, productivity improvements and cost reductions to differ materially from that set forth in the forward-looking statements include process and employment issues, general economic conditions, interest rates, supply and demand for the company's products and other risks detailed from time to time in the documents filed by the Company with the securities regulators in Canada. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.