Temiscaming, Quebec, Canada, 08  December 2009 – Tembec today announced that it will put its newsprint mill in Pine Falls, Manitoba, up for sale. The facility, which has an annual capacity of approximately 200,000 metric tons, has been idled since 01 September 2009, due to a labor dispute.

“We have examined a full range of options related to our continuing ownership of this facility and have concluded that it is in the best interest of Tembec and the employees of the Pine Falls mill that we exit that site,” said John Valley, executive vice president, Business Development and Corporate Affairs. “It is our hope to find a new owner for the site and we are prepared to work with all parties to facilitate a transaction. However, if the sales process is not successful or if it is not completed in a timely manner, we will consider other options, including a permanent closure of the facility.”

As a result of the decision announced today, Tembec has informed the Province of Manitoba and the United Steelworkers (USW) that it is prepared to end the current lockout, subject to reaching an agreement on a limited number of local issues. The ending of the lockout will not, however, mean a resumption of operations. The company has contacted the union through the USW to begin discussions on those issues, with the hope of achieving a timely resolution.

Tembec is a large, diversified and integrated forest products company and a global leader in sustainable forest management practices. The company’s principal operations are located in Canada and France. 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.