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Tembec Updates Recapitalization Plans
Montreal, Quebec, Canada, 06 February 2008 -– Tembec Inc. provided an update today on its proposed recapitalization transaction announced on 19 December 2007, as follows:

Additional noteholders have executed support agreements in which they agreed to vote in favor of and to support the recapitalization. Noteholders have now agreed to vote in excess of USD 795 million of notes in favor of and to support the recapitalization, representing more than 66% of the total amount of notes outstanding. As contemplated in the key terms of the recapitalization announced on 19 December 2007, all additional backstop agreements with Tembec have now been completed.

Tembec received written notice from the financial advisors to the informal committee of noteholders, confirming the committee’s continuing support for the recapitalization and advising Tembec that they have informed Jolina Capital Inc. and its advisors of such views in respect of the recapitalization.

Tembec stakeholders are also reminded of the following:

As previously announced, a management proxy circular relating to the recapitalization was mailed to registered noteholders of Tembec Industries Inc. and registered shareholders of Tembec Inc. on 29 January 2008.

Qualifying noteholders who wish to participate in the new USD 300 million loan to Tembec Industries Inc. must deliver properly executed New Loan Participation Forms to Computershare Investor Services before 15 February 2008. Details regarding participation in the new loan are contained in the proxy circular.

A Special Meeting of Shareholders and a Meeting of Noteholders will be held on 22 February 2008 relating to the approval of the recapitalization. Proxies for the meetings must be received by Computershare Investor Services before 5:00 p.m. (Eastern Time) on 20 February 2008.

A hearing for the court order approving the recapitalization has been set for 27 February 2008. Implementation of the recapitalization is expected to occur on 29 February 2008. Tembec will continue to solicit and obtain further support for the recapitalization.

Further information concerning the meetings, the completion of proxies and participation in the new loan is provided in the proxy circular and related materials, which are available on SEDAR (www.sedar.com), EDGAR (www.sec.gov/edgar.shtml) and Tembec’s website (www.tembec.com). Any questions or requests for further information regarding the meetings or participation in the new loan should be directed to Georgeson Shareholder Communications Canada Inc. at 1-866-783-6756.

Tembec is a large, diversified, and integrated forest products company. 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 TBC. Additional information on Tembec is available on its website at www.tembec.com.

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