Montreal, Quebec, Canada, 27 March 2008 -– Tembec confirmed that a fire broke out in paper machine No. 1 at its Pine Falls facility in Manitoba around 6:20 p.m. on 26 March. Employees responded to the fire and followed the emergency response procedure in place at the mill. There were no major injuries as a result of the fire. Twelve employees were treated, mainly as a precaution, for smoke inhalation at the regional health services. All have been released.

“The mill emergency team responded quickly and effectively to the situation along with Pine Falls fire brigade and ambulance service. Their joint actions resulted in limited damages to machine NO. 1. Paper machine No. 2 was unaffected by the fire and the mill is expected to resume full production in a few days. Tembec will take all necessary measures so that the regular supply to its clientele is not impaired,” said Dan Boyer, General Manager at Pine Falls.

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 8000 people. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TMB. Additional information on Tembec is available at www.tembec.com.