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NEWS RELEASE

For immediate release: June 19, 2002

Tolko Pursues Long Term Vision in The Pas

The Pas, Manitoba - Tolko Industries Ltd. is now a fixture in the spirited community of The Pas and plans for a long relationship with its neighbours.

In the five years since expanding from its British Columbia and Alberta operations into Manitoba, Tolko has invested more than $125 million in capital upgrades to its Kraft Papers and Solid Wood Divisions. This has helped them provide more than 900 direct and indirect employment opportunities to people from throughout Northern Manitoba.

The Company pays over $9 million in municipal and provincial taxes each year, funds that can help provide for education and health care initiatives. Tolko also significantly contributes to the area by supporting local charities, foundations and organizations. Participation in the local Northern Manitoba Trappers’ Festival, support for the Opaskwayak Cree Nation hockey team, food donations to The Pas Friendship Centre Food Banks, and involvement with the RCMP’s Drug Abuse Awareness Program are only a few of the activities that the Company supports.

Tolko has formed alliances and partnerships with many First Nations of Northern Manitoba, including the Mosakahiken Cree Nation (Moose Lake), Nisichawayasihk Cree Nation (Nelson House), Chemawawin Cree Nation (Easterville), Marcel Colomb Cree Nation and the Grand Rapids First Nation. These often involve logging, sharing of forest management knowledge, employee training, and collaborating on planning. Contracts awarded to First Nation businesses for woodland activities totaled more than $16.5 million in 2001.Tolko believes the relationship that it maintains with its First Nations partners is critical to the success of all parties.

The local sawmill primarily produces spruce, pine and fir lumber for residential construction. While trade duties imposed by the United States on Canadian softwood lumber are an added pressure, the company is determined to pursue its long term vision for the local sawmill operations. Tolko President and CEO Al Thorlakson confirms, "…we have substantially capitalized all our lumber manufacturing operations, and we are hopeful that with optimum performance we will avoid any permanent closures." With its employees’ efforts and a $70 million modernization project, the sawmill is currently enjoying increased productivity and efficiencies.

Mill tours are available at all of Tolko’s Divisions; just call ahead to schedule the tour. More information on Tolko, its history, and its products is available on their website at www.tolko.com


For more information:
Blair Sullivan
Tolko Manitoba Woodlands Manager
Phone: 204-623-8541

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