Temiscaming, Quebec, Canada, 06 October 2008 – Tembec today announced coordinated production curtailments of 35,000 metric tons from its three high-yield pulp mills to balance inventory levels.

The company’s Temcell mill in Temiscaming, Quebec, will curtail production of 16,500 metric tons between 11 October and 09 November. The Chetwynd, British Columbia, operation will shut down on 19 October and resume operations on 27 October, resulting in a reduction of output of 4000 metric tons. The Matane, Quebec, mill will cease operations from 19 October to 01 November and from 23 November to 29 November, taking 14,500 metric tons off the market.

“Lower demand for pulp in Asia is the primary reason for the production curtailments. The shutdowns announced today will allow Tembec to manage inventories and working capital to the appropriate levels. The company will also take advantage of this downtime to do some maintenance work,” said Yvon Pelletier, executive vice president and president of the Pulp Group.

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

The Temcell operation produces 300,000 metric tons of hardwood high-yield pulp annually. Annual production at Chetwynd is 230,000 metric tons, and 250,000 metric tons at Matane.

Tembec is a large, diversified and integrated forest products company and a global leader in sustainable forest management practices. With operations principally located in North America and in France, the company employs approximately 8000 people. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available at www.tembec.com.