Tembec Temporarily Shuts Down Sawmills in Quebec and Ontario

Temiscaming, Quebec, Canada, 20 July 2006 –- Tembec today announced a series of short-term shutdowns at its sawmills located in Ontario and Quebec. The shutdowns will range from one to four weeks, depending on the site.

"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 overall market conditions, product pricing, and the annual two-week construction holiday in Quebec."

While most of the outages will run in the two-week range, the Timmins site will suspend its operations for four weeks, and subject to review, possibly more. "The Timmins mill has some particular challenges to overcome. We have identified areas where improvements have to be made and we will be working with employees at all levels to endeavour to address these," added Rounsville.

These temporary shutdowns will result in a combined capacity withdrawal of 33 million boardfeet and will affect approximately 1500 employees. Management has already met or will meet with employees of all affected sites to inform them 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 10,000 people. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TBC. Additional information on Tembec is available on its Web site at www.tembec.com