Temiscaming, Quebec, Canada 13 February 2009 –Tembec today advised that, as a result of the filing of a notice of intention to make a proposal under the Bankruptcy and Insolvency Act (Canada) by Marathon Pulp Inc., a joint venture in which it holds a 50% interest, Tembec Inc. will immediately cease proportionately consolidating the financial results of Marathon in its financial statements. This will result in a one-time gain of $3 million in the March 2009 quarter. During the twelve-month period ended December 27, 2008, the joint venture had increased Tembec’s reported sales by $61 million and had generated EBITDA of $2 million.
Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. With operations principally located in North America and in France, the Company employs approximately 7,000 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 on its website at www.tembec.com.
This press release includes “forward-looking statements” within the meaning of securities laws. Such statements relate to the Company’s or management’s objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as “will”, “anticipate”, “estimate”, “expect” and “project” or variations of such words. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in our periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.