Tolko Announces Indefinite Closure at Slave Lake OSB Mill

Slave Lake, Alberta, Canada, 16 March 2007 - Tolko Industries Ltd. announced today that the closure initiated 08 February 8 at the Slave Lake OSB Division is being extended indefinitely. The plant will remain closed until either market conditions for current products improve or value-added products are developed.

"We regret the impact this has on our employees and their families," said Rick Huff, Tolko vice president, OSB and energy. "Employees have demonstrated great commitment and effort through the challenging conditions faced in recent months."

The indefinite closure affects 118 employees. Support from Human Resources and Social Development Canada and the company's Employee and Family Assistance Program is being offered to the affected workers.

Despite impressive gains in productivity and reductions in cost, the Slave Lake OSB Division is not competitive in its current form, said Huff. "The relatively small scale of this operation limits its viability in the commodity flooring sector," he explained.

Poor market conditions, low prices, and product over-supply are compounding the situation and are expected to continue for the rest of 2007.

Tolko will follow the terms of the contract and will begin discussions with United Steelworkers shortly.

Tolko Industries Ltd. (Tolko) is a family-owned forest products company based in Vernon, British Columbia, that manufactures and markets specialty forest products to world markets. Tolko is a major producer and marketer of lumber, plywood, oriented strand board, and kraft papers, with approximately 4500 employees. The company's woodlands operations have received third-party certification of their sustainable forest management systems.