Tembec Shuts Down its Béarn, Quebec Sawmill for Three Months

Temiscaming, Quebec, Canada, 13 March 2008 -– Tembec today announced a temporary shutdown of at least three months at its Béarn sawmill in Quebec, effective 31 March 2008. The shutdown decision was based on the lack of reasonably priced logs in the region and the overall depressed lumber market.

“This shutdown is a reflection of the severe decline in overall market conditions, driven primarily by the dramatic fall in the number of housing starts in the United States and the related impact on lumber pricing. The continued high value of the Canadian dollar against the U.S. dollar further aggravates these conditions,” said Dennis Rounsville, executive vice president and president of Tembec’s Forest Products Group.

The Béarn sawmill has an annual production capacity of 110,000 Mfbm of SPF lumber and employs approximately 150 people.

Management has already met with employees to inform them 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 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 on its website at www.tembec.com.