Temiscaming, Quebec, Canada, 26 June 2008 – James Lopez, president and chief executive officer of Tembec, and Yvon Pelletier, executive vice president and president of the Pulp Group, are pleased to announce the start-up of a new biomass boiler at the pulp mill in Tartas, France. This EUR 33.8 million investment (CAD 53 million) will supply 85 metric tons per hour of steam to the pulp mill, which produces 155,000 metric tons of specialty cellulose pulp annually. An inauguration ceremony was held in Tartas on 18 June 2008.

“This is an excellent investment that combines good financial returns with sound environmental stewardship. It will improve the efficiency of the mill, lower energy costs, and reduce carbon emissions. I am particularly proud of the fact that this project was not just completed within the timelines and budget allotted, but it was done without a significant health and safety incident in over 100,000 man-hours of construction. It was a well-managed project,” said Lopez.

The fluidized bed boiler will burn biomass from the industrial process, bark, and other harvested wood residuals to produce steam for use in the manufacture of pulp. Natural gas will be used only for start-up.

“The efficiency of the new boiler in its initial start-up phase is already beyond our expectations. As a result of significant technological enhancements over the last few years, this mill contributes positively to the overall Group performance and to the quality of the environment in the region,” said Pelletier.

The new biomass boiler investment involved an innovative partnership with local authorities and the financial support of the Conseil régional d’Aquitaine, le Conseil général des Landes, and l’Agence de l’eau Adour Garonne. Further, Tembec benefited from interest-free term loans for the financing of the infrastructure.

Tembec is a large, diversified and integrated forest products company that is 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.