Toronto, Ontario, Canada, 23 May 2007 -- Sino-Forest Corporation (TSX:TRE and TRE.S) announces that the corporation has reached an agreement with the underwriters to increase the size of its bought deal announced 22 May 2007.

The syndicate, led by Dundee Securities Corporation, and including CIBC World Markets Inc., Merrill Lynch Canada Inc., UBS Securities Canada Inc., Credit Suisse Securities (Canada) Inc., and Haywood Securities Inc., have agreed to purchase 13,900,000 shares at a price of CAD 12.65 for gross proceeds of approximately CAD 175.8 million.

The Corporation has granted the Underwriters an option to purchase up to an additional 2,000,000 common shares at the issue price to cover over-allotments, if any, exercisable in whole or in part, for a period of 30 days after the closing date.

The offering is scheduled to close on or about 14 June 2007, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

The proceeds shall be used primarily for general corporate purposes, including for the acquisition of standing timber, for the acquisition or construction of related processing facilities in the plantation regions in which the issuer and its subsidiaries has or will have operations, and for working capital in connection with the foregoing.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Sino-Forest Corporation

Sino-Forest Corporation, a Canadian company, is a leading commercial forestry plantations operator in China. The company started its operations in 1994 and is the first foreign and privately managed operator involved in forest products in China. Its principal businesses include the ownership and management of
forestry plantation trees and sales of standing timber, wood chips and logs, and complementary manufacturing of downstream engineered-wood products. The Corporation's common shares trade on the Toronto Stock Exchange under the symbol TRE since 1995.