Company News :: Tolko Industries Ltd

For immediate release: August 21, 2006

Tolko offers conditional support for Softwood Agreement; expects settlement to be durable and to move towards fair trade in lumber

Vernon, BC - Tolko Industries Ltd. today advised the federal government of its conditional support for the Softwood Lumber Agreement negotiated between Canada and the United States.

In a letter to International Trade Minister David Emerson, Tolko President and Chief Executive Officer Al Thorlakson thanked the government for its efforts in seeking a resolution to the long-running softwood dispute. In his letter to Minister Emerson Thorlakson said, “We are asking that the government ensure that the principle of fair trade underlies this Agreement.”

Thorlakson also expressed his appreciation for the hard work that has been done by Premier Campbell and Minister Coleman to address the concerns of BC industry that were identified in the April 27, 2006 framework agreement.

“Tolko has long believed in a negotiated end to this dispute,” says Thorlakson. “We have had concerns about this settlement, but improvements made to it since April 27, 2006 has brought us enough confidence that we can now add our conditional support. We intend to work diligently with all parties involved so that the settlement in its final form ensures fairness, durability and market functionality.”

“This Agreement is a long way from perfect, but the realities of the U.S. industry and the U.S. marketplace have to be considered,” says Thorlakson. “We know that our company and others in the Canadian industry can compete and succeed very well in the U.S. market. We believe firmly that in true free and fair trade the ultimate winner is the consumer, and we are hopeful that this settlement works so well for both sides that it will be maintained for the full seven years and then will be renewed on an ‘evergreen basis’ thereafter.”

Celebrating its 50th anniversary in 2006, Tolko Industries Ltd. (Tolko) is a private, Canadian-owned forest products company based in Vernon, British Columbia that manufactures and markets specialty forest products to world markets. With manufacturing operations across Western Canada, Tolko is a major producer and marketer of lumber, veneer, plywood, oriented strand board, and kraft papers. The Company’s Woodlands operations in British Columbia, Alberta, Saskatchewan, and Manitoba have received third-party certification of their sustainable forest management systems.