Strategic options being reviewed for Tembec's European Kraft pulp operations

TEMISCAMING, QC, Nov. 27 /CNW Telbec/ - Tembec Inc. today confirmed that Tembec SAS, its European subsidiary, has retained the services of investment bankers Houlihan Lokey to review strategic options for the two Kraft pulp mills held by subsidiaries of Tembec SAS. While still exploring other strategic options, Tembec SAS has initiated a process to explore the interest of third parties in acquiring these two mills. The mills are located in Tarascon and Saint-Gaudens, France and have a combined capacity of 565,000 metric tonnes of pulp capacity. The two sites also have in excess of 70 megawatts of electrical generating capacity between them, with a portion of that being available for sale to the grid. The review of strategic options does not include the Tembec SAS specialty pulp mill located in Tartas.

Tembec is a large, diversified and integrated forest products company which stands as the 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 on its website at www.tembec.com.

This press release includes "forward-looking statements" within the meaning of securities laws. Such statements relate to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "will", "anticipate", "estimate", "expect" and "project" or variations of such words. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in our periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information: John Valley, Executive Vice President, Business Development and Corporate Affairs, [phone], [email protected]; Tracy Dottori, Human Resources Manager, Forest Products Group, [phone], [email protected]