Mississauga, Ontario, Canada, 22 May 2008 - Arclin, a leading provider of bonding and surfacing solutions for today’s engineered materials markets, announced today they will be suspending start-up operations of its new Sexsmith, Alberta, resin plant, citing reduced demand for adhesives in the region.

“The severe downturn and recession in the U.S. housing market, coupled with a strong Canadian dollar, have resulted in a large number of closures of wood products facilities in western Canadian, thereby significantly reducing resin demand”, said Claudio D’Ambrosio, president and CEO of Arclin. “We will preserve the facility in its current state and will re-initiate start-up activities as soon as demand returns,” he said.

“Tremendous effort from our employees and area contractors has gone into bringing this state of the art facility on line and is greatly appreciated,” D’Ambrosio said. “We are committed to this project and will continue dialogue with our customer base to gauge the appropriate time to start up the plant.” Arclin will continue to satisfy its customer needs in the region out of it facilities in Kamloops, British Columbia, and Thunder Bay, Ontario.

Based in Mississauga, Ontario, Arclin provides innovative bonding solutions for a number of applications, including wood based panels, engineered wood, mineral and glass fiber tissue, and paper impregnation. As a world leader in paper overlays technology, Arclin provides high value surfacing solutions for decorative panels, building products, and industrial specialty applications for North American and export markets. For more information, visit http://www.arclin.com.