PRESS RELEASE

Kelowna, B.C. – Today Tolko Industries Limited formally announced plans to invest nearly $2 million toward air quality improvement projects at its Kelowna Division.

“We are pleased to be following through on the commitments we made last year to further reduce emissions at the Kelowna Division,” says Greg Maralia, Site Manager. “We’d like to acknowledge the North End residents for their support and patience as we move to complete these projects.”

The first project involves the installation of a state-of-the-art control system that will automate the combustion process in the operation’s three biomass-fired steam boilers. This will improve the efficiency of converting wood residue into “green” electrical power while also reducing air emissions.

The second air quality improvement project involves an extensive retrofit of the division’s emission control device for three biomass boilers. Engineering for this project was complete in January and equipment should be delivered in early July.

“Even though we currently meet all the governmental permitting requirements, these projects underline Tolko’s ongoing commitment to the city of Kelowna and all of its residents,” says Maralia.

Kelowna’s Mayor, Sharon Shepherd, appreciates the commitment and investment Tolko is making.

“Tolko is a valued member of our community and I am very pleased they are taking these steps to improve the air quality in Kelowna.” she says.

Both projects at the Kelowna Division are expected to be completed by August 2007.

For further information, please contact:

Greg Maralia Site Manager, Kelowna Division Phone: 250.861.6972 E-mail

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