TOLKO NEWS

Tolko curtails lumber production

January 19, 2009—Tolko Industries Ltd. announced reductions to its dimensional lumber production due to poor markets. The company is undertaking an indefinite curtailment at its plant in The Pas, Manitoba, and plans to reduce production schedules from four to three days per week in Williams Lake and Quesnel, British Columbia, beginning January 26, 2009.

This announcement impacts 240 million board feet of lumber on an annual basis at its Manitoba Solid Wood, Lakeview, Creekside, and Quest Wood divisions. Operations will resume when business conditions adequately improve.

“This action is a necessary response to the difficult market conditions dimensional lumber producers face,” said Mike Harkies, Tolko Vice President & General Manager, Solid Wood & Kraft Papers. “We appreciate our customers and employees understanding as we manage our business through these challenging times. “

Tolko’s Soda Creek stud mill reduced operations to a two-shift schedule January 5, 2009. Operational changes to Tolko’s solid wood production over the past two months, including today’s announcement, potentially impact over 430 million board feet on an annual basis.

Tolko Industries Ltd. is a private, Canadian-owned forest products company based in Vernon, British Columbia with over 3,500 employees. Tolko is a major producer and marketer of lumber, veneer, plywood, oriented strand board, and kraft papers, with manufacturing operations across Western Canada. The Company’s Woodlands operations have received third-party certification of their sustainable forest management systems.

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Sam Mowat General Manager, Marketing & Sales
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