Tembec Curtails Production at its Sawmills in Quebec, Ontario, and British Columbia

Temiscaming, Quebec, Canada, 15 June 2007 –- Tembec today announced a series of short-term and indefinite closures at its sawmills located in Quebec, Ontario, and British Columbia, in addition to ongoing full or partial closures.

Mills tentatively scheduled for a two-week full or partial closure in July and August include Senneterre, Taschereau, and Béarn in Québec; and Hearst and Chapleau in Ontario. This production loss will be partially offset by the temporary nine week re-opening of the La Sarre, Quebec, sawmill.

In addition, Tembec will indefinitely shutdown the third shift at its Elko sawmill and corresponding Cranbrook planer mill, in British-Columbia; the third shift at its Cochrane sawmill and planer mill, in Ontario; and the second shift at the Cranbrook finger joint mill in British Columbia, which will result in annualized curtailments of 120 million board feet.

These curtailments are in addition to existing closures at Timmins, Ontario, sawmill; La Sarre, Quebec, sawmill; and Kirkland Lake, Ontario, Engineered wood products, resulting in a total annualized curtailment in excess of 300 million board feet.

“These shutdowns are being taken due to a combination of factors,” said Dennis Rounsville, executive vice president and president of Tembec’s Forest Products Group. “These include holiday scheduling, the sharp decline in demand for lumber, low lumber prices, and the impact of the high value of the Canadian dollar.”

Management has informed employees of all affected sites of the company’s decision.

Tembec is a large, diversified and integrated forest products company. With operations principally located in North America and in France, the company employs approximately 9000 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