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NEWS RELEASE

For immediate release: June 24, 2002

High Prairie mill plans maintenance shutdown

Tolko’s High Prairie OSB mill announced today that its maintenance shutdown will commence on August 15, 2002. The shutdown is scheduled for two weeks, with production anticipated to begin again on August 29, 2002.

With major capital investment planned, the Division will strive to meet three key objectives during the outage.

The first objective is to improve the air quality in the plant, which has been compromised by dust, smoke, and negative air pressure in the past. Stan Nicholls, Area Manager at High Prairie says, "We will move our two, large air make-up units from the north side of the mill, where they are underutilized, to the south side of the mill. We also intend to install 7 new fans that will give us more air make-up and exhaust to improve air circulation/ventilation.These steps, along with other initiatives, will substantially improve the air quality and air pressure in the plant."

The last two objectives will be to rebuild the plant’s press and dryers. "Rebuilding our press and dryers will allow us to optimize our products, attain increased production rates and better serve our customer’s needs", says Stan. In addition to these key objectives, the Division will complete a number of process and profit-enhancing projects during the maintenance shutdown.

Stan concluded, "We are confident that with the improvements we have planned, our ability to meet and exceed our customer’s requirements will be significantly improved."

The two-week curtailment will remove approximately 25 Million Square Feet (3/8 basis) from the North American OSB market. In addition, product manufactured in the first two weeks of August will be used to supply contract customers during the curtailment period. As a result no cash market OSB will be available during the month of August.


For more information:
Stan Nicholls
Area Manager - High Prairie Division
Phone: 780-523-2101

Ralph Ayers
OSB Sales
Phone: 250-549-5320

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