Tembec Temporarily Shuts Down Sawmills and Planer Mills in British Columbia

Temiscaming, Quebec, Canada, 25 September 2007 –- Tembec today announced a series of coordinated temporary market-related shutdowns at its sawmills located in Elko and Canal Flats, British Columbia.

The Elko sawmill/planer mills complex will shut down for a minimum of two weeks, commencing 01 October, and the Canal Flats sawmill/planer mills will take corresponding downtime commencing 15 October.

The curtailments are in addition to existing shutdowns in eastern Canada at the company’s facilities in Timmins and Kirkland Lake, Ontario, and La Sarre and Béarn, Quebec.

“These shutdowns are due to a combination of factors,” said Dennis Rounsville, executive vice president and president of Tembec’s Forest Products Group. “These include the sharp decline in demand and prices for lumber and the impact of the high value of the Canadian dollar.”

The Canal Flats and Elko sawmills and planer mills have an annual production capacity of 420,000 Mfbm of SPF lumber and employ approximately 480 people.

Management has informed employees at all affected sites of the company’s decision.

Tembec is a large, diversified, and integrated forest products company. With operations principally located in North America and in France, the company employs approximately 9000 people. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TBC. Additional information on Tembec is available at www.tembec.com