Tembec Temporarily Shuts Down its Béarn, Quebec Sawmill

Temiscaming, Quebec, Canada, 18 September 2007 -– Tembec today announced a temporary shutdown at its Béarn sawmill in Quebec. The shutdown will be effective 08 October 2007, and last for two weeks.

This shutdown comes in addition to the ongoing idling of its sawmills in La Sarre, Quebec, and Timmins, Ontario, and shorter term production curtailments at its Cochrane, Ontario, and Elko, British Columbia, sawmills announced earlier this summer.

“This shutdown is due to a combination of factors, including a sharp decline in overall market conditions, product pricing, and the continued high value of the Canadian dollar,” said Dennis Rounsville, executive vice president and president of Tembec’s Forest Products Group. “Cost competitiveness is always a key issue and becomes particularly critical in market conditions such as those we are currently facing. The lack of availability of affordable saw logs in this region has made this mill particularly vulnerable to such market challenges.”

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 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