Tembec announces surcharge for its Chemical business

    TEMISCAMING, QC, July 30 /CNW Telbec/ - Tembec today announced a
surcharge that will be applied to the resin and lignosulfonate products
produced by its Chemical Products Group for their North American customers.
    This surcharge is a direct reflection of the significant cost increases
being seen in a number of inputs, including freight, chemicals and energy.
"This surcharge is directly related to the recent significant increases
imposed on our operations by our suppliers, most notably in the areas of
energy and purchased chemicals," said Randy Fournier, Senior Vice President,
Chemical Products Group. "There is no responsible alternative but to pass
these increases along the supply chain."
    Tembec's President and Chief Executive Officer, James Lopez, affirmed
this most recent surcharge action. "Cost increases of this magnitude cannot be
absorbed internally. As with our recent Specialty Dissolving Pulp
announcement, we must pass these on to our customers, and eventually to their
customers," said Mr. Lopez.
    Tembec has indicated that the size of the surcharge will be determined by
product segment and customers based on specific product formulation. The
surcharge will be adjusted as energy and chemical prices change.
    Tembec is a large, diversified and integrated forest products company
which stands as the global leader in sustainable forest management practices.
With operations principally located in North America and in France, the
Company employs approximately 8,000 people. 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

    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

For further information:

For further information: John Valley, Executive Vice President, Business
Development and Corporate Affairs, (819) 627-4715, john.valley@tembec.com

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