Temiscaming, Quebec, Canada, 02 September 2008 -– Tembec today announced limited production curtailments at two of its pulp mills to balance inventory levels. The company’s Temcell hardwood high-yield pulp mill in Temiscaming, Quebec stopped production on 31 August for one week, while its softwood kraft pulp mill in Tarascon, France, will be idled for two weeks, commencing 10 September. These curtailments combined will reduce output by 16,500 metric tons.

“The late summer period typically represents a period of lower demand for pulp," said Yvon Pelletier, executive vice president and president of the Pulp Group. "We are seeing this occurring in Europe and areas of Asia, driven in part by annual vacation shutdowns in pulp consuming businesses. Further, we are experiencing lower demand from our customers. The shutdowns announced today will allow Tembec to prudently manage both inventory levels and working capital,” Pelletier said.

Management has informed employees at both sites of the company’s decision.

The Temcell operation produces 300,000 metric tons of hardwood high-yield pulp annually and Tarascon’s yearly production amounts to 260,000 metric tons of softwood kraft pulp.

Tembec is a large, diversified and integrated forest products company and a global leader in sustainable forest management practices. With operations principally located in North America and in France, the company employs approximately 8000 people. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available at www.tembec.com.