Catalyst Paper Adopts Ivara Asset Reliability Process to Improve Paper Machine Efficiency by up to 3%


North American Pulp and Paper Leader Selects Ivara Solution to Increase Mill Performance

BURLINGTON, ON (January 23, 2006) - Ivara Corporation, an industry leader and innovator in asset reliability solutions, today announced that Catalyst Paper, a leading North American producer of mechanical printing papers, has selected the Ivara Reliability Solution to optimize asset reliability at its four paper mills and increase paper machine efficiency by up to three per cent. At the Port Alberni mill, the first facility to adopt the Ivara solution, increased capacity and cost savings are anticipated to be $1.5 million in the first year, and to reach $7.1 million per year after the three-year ramp up.

With billions invested in its mills, improving performance was critical to Catalyst's long-term profitability. Catalyst needed a solution to optimize the reliability of mill assets while also ensuring it could standardize the asset reliability process across its paper mills. Recognizing that this would affect the way maintenance and operations worked, Catalyst required a solution that would carefully manage this change while ensuring employee collaboration and support. To achieve these goals, Catalyst selected the Ivara Reliability Solution.

The Ivara Reliability Solution combines advanced practices and enabling technology to support a proactive asset reliability process. The solution implements improved asset reliability, one system at a time, ensuring the right maintenance work is executed on the right equipment, at the right time. The result is a formalized business process that optimizes asset performance and drives business results. The Ivara Work Smart(TM) implementation methodology addressed the need for effective change management and aligned well with Catalyst's tradition of employee involvement.

"Ivara's approach to managing change aligns so closely with Catalyst's expectations that we will adopt it as our change management process for future corporate initiatives," says Brad Smith, corporate manager, Asset Care Program, Catalyst Paper. "As the implementation progresses, we are on track to increase machine efficiency by up to three per cent - a significant impact that aligns our maintenance efforts with our profitability goals."

"Improved asset performance cannot be achieved through technology alone. We offer our customers a complete solution to enable a process that delivers a recurring annual improvement to their bottom line," says Bill Shaw, Ivara president and CEO. "We are pleased Catalyst has embraced our asset reliability process to strengthen their competitive position and we are committed to their continued success."

About Catalyst Paper

Catalyst is a leading producer of mechanical printing papers in North America. The company also produces de-inked pulp, market kraft pulp, and containerboard. With five mills employing 3,800 people at sites within 160 kilometres of each other on the south coast of British Columbia, Catalyst has a combined annual capacity of 2.5 million tonnes of product. The company is headquartered in Vancouver, B.C.

About Ivara

A leader in asset reliability solutions, Ivara helps capital intensive companies improve operational performance by better managing the reliability of their plant assets. Ivara's unique methodology implements reliability one asset at a time, resulting in a high financial impact that is quickly realized. By putting a proactive asset reliability process in place and focusing on changing people's behavior and activities, Ivara helps transition organizations to proactively managing asset health. For more information about Ivara, visit www.ivara.com.

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