Tembec sells its already closed Pine Falls, Manitoba mill property and assets

MONTREAL, Oct. 7, 2011 /CNW Telbec/ - Tembec announced today that Pine Falls Development Corporation (PFDC) has acquired the Tembec Pine Falls, Manitoba mill property and assets. PFDC is an investment project of NRI Global Inc., a company that acquires and manages assets throughout North America.

The site is being sold for nominal net proceeds and the transaction will not impact the Company's financial results as its carrying value had been reduced when the newsprint mill located on site was permanently idled.

The Tembec Pine Falls facility ceased production in September 2009. Permanent closure was announced in 2010. Tembec will transfer the site to PFDC who has finalized a plan to remediate the site in an approach that allows for investment recovery, site redevelopment and assured environmental closure.

NRI Global is a private investment firm that acquires distressed or impaired assets. NRI Global has offices in Toronto, Ontario and Buffalo, New York. The firm specializes in pulp and paper, energy, and resource transactions in North America. NRI Global and its subsidiary companies have operational expertise in finance, environmental remediation, site redevelopment, industrial services and trade.

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.

For more information about PFDC, visit www.pinefallsdevelopment.com.

This press release includes "forward-looking statements" within the meaning of securities laws. Such statements relate, without limitation, to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "may", "will", "could", "anticipate", "estimate", "expect" and "project", the negative or variation thereof, and expressions of similar nature. Forward looking statements are based on certain assumptions and analyses made by the Company in light of its experience, information available to it 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 forward-looking statements contained herein reflect the Company's expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.

For further information:

Linda Coates
Vice President, Communications and Public Affairs
Tel.: [phone]
[e-mail]

Peter Boyd
Director of Investments
NRI Global Inc.
Tel.: [phone]
[e-mail]