Sino-Forest Corporation Closes Over-Allotment Option


    TORONTO, Aug. 6 /CNW/ - Sino-Forest Corporation (the "Company") (TSX: TRE
and TRE.S) today announced that it has completed the issuance of an additional
US$45,000,000 convertible senior notes pursuant to the exercise of the
over-allotment option previously granted to Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Credit Suisse Securities (USA) LLC in connection with
the initial offering of convertible senior notes that closed on July 23, 2008.
The exercise of the over-allotment option has resulted in aggregate gross
proceeds to the Company of US$345,000,000 from the convertible note offering.
    The notes shall bear interest at a rate of 5.0% per annum, payable
semi-annually and shall mature on August 1, 2013. The notes will be
convertible into common shares of the Company at a conversion price of
US$20.29 (Cdn$20.32) per share, equivalent to a conversion rate of 49.2974
shares per US$1,000 principal amount of notes, subject to customary
    As indicated in previous press releases, the net proceeds of the offering
are intended to be used for the acquisition of 200,000 hectares of commercial
plantation forests in the Fujian Province over a 10-year period with the
consideration price for the trees not to exceed RMB350 per cubic meter,
subject to the specific terms and conditions of the purchases are to be
determined upon the execution of definitive agreements between the relevant
parties; to lease land and planting of Jatropha trees; and the balance of the
net proceeds will be employed for general working capital purposes.
    The notes have been assigned a Ba2 rating by Moody's Investors Service.

    This press release is not for distribution, directly or indirectly, in or
into the United States (including its territories and possessions, any State
of the United States and the District of Columbia).
    This press release does not constitute or form a part of any offer or
solicitation to purchase or subscribe for securities in the United States or
any other jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such jurisdiction. No securities of Sino-Forest Corporation may be offered
or sold in the United States unless they are registered under the US
Securities Act of 1933, as amended (the "Securities Act"), or exempt from the
registration requirements of the Securities Act. Sino-Forest Corporation does
not intend to conduct a public offering in the United States and the
securities referred to herein have not been and will not be registered under
the Securities Act.

    About Sino-Forest Corporation

    Sino-Forest Corporation is a leading commercial forestry plantation
operator in China. The Canadian company started its operations in 1994 and was
of the first few foreign and privately managed operators involved in forest
products in China. Its principal businesses include the ownership and
management of forestry plantation trees and sales of standing timber, wood
logs and complementary manufacturing of downstream engineered-wood products.
The Corporation's common shares trade on the Toronto Stock Exchange under the
symbol TRE since 1995.

    Please note: This press release contains projections and forward-looking
statements regarding future events. Such forward-looking statements are not
guarantees of future performance of the Company and are subject to risks and
uncertainties that could cause actual results and company plans and objectives
to differ materially from those expressed in the forward-looking statements.
Such risks and uncertainties include, but not limited to, changes in China and
international economies; changes in currency exchange rates; changes in
worldwide demand for the Company's products; changes in worldwide production
and production capacity in the forest products industry; competitive pricing
pressures for the Company's products and changes in wood and timber costs.

For further information:

For further information: DAVE HORSLEY, Senior Vice President & Chief
Financial Officer, Tel: (905) 281-8889, Email:;
LOUISA WONG, Senior Manager, Investor Communications & Relations, Tel: +852
2514 2109, Email:

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