PRESS RELEASE

Edmonton, AB - Tolko’s OSB operations in High Prairie, Alberta, and Meadow Lake, Saskatchewan, are curtailing production as a result of continuing poor business conditions. The current downturn is fuelled by the rising Canadian dollar, escalating energy, fibre and transportation costs, and a 30% drop in US housing starts over the past year.

In addition to a reduced production schedule, both operations will take 3-weeks of downtime. Meadow Lake Division will begin their shutdown on July 16 and High Prairie Division’s will begin on July 20.

Combined with previous curtailments, this action will result in a cumulative production decrease of approximately 740 million sq. ft. (3/8” basis) of OSB compared to 2006. In addition to the 118 positions affected by Slave Lake OSB division’s indefinite closure announced March 2007, the related restructuring within the business further eliminates 30 production jobs plus related harvesting positions.

“We recognize the commendable commitment and effort shown by our employees and contractors,” said Rick Huff, Vice-President, OSB & Energy. “We also appreciate our customers’ understanding as we work together through this challenging period.”

Tolko Industries Ltd. is a private, Canadian-owned forest products company based in Vernon, British Columbia with approximately 4,500 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.

For further information, please contact:

Rick Huff Vice-President & General Manager, OSB & Energy (780) 425-6864 E-mail

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