Tembec Curtails Production at its Huntsville, Ontario, Hardwood Sawmill

Temiscaming, Quebec, Canada, 06 July 2007 -– Tembec today announced a one-week shutdown of its Huntsville, Ontario, hardwood sawmill, effective 09 July 2007. The sawmill will be restarted on a one-shift basis 16 July 2007, with the second shift continuing to be idled for an indefinite period.

“This one-week shutdown and the subsequent indefinite shutdown of the second shift are due to a combination of factors, including overall market conditions for hardwood lumber, economic sawlog availability, and the high value of the Canadian dollar,” said Dennis Rounsville, executive vice president and president of Tembec’s Forest Products Group.

The one-week shutdown will affect 53 employees in total; 29 employees will return to work following the one-week shutdown, and 24 employees will be affected by the indefinite shutdown of the second shift.

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.