PRESS RELEASE

Slave Lake, Alberta - Tolko Industries Ltd. today announced that the name of its new engineered wood plant being constructed southeast of Slave Lake in north central Alberta is Athabasca Division.

"Athabasca" holds significance to both Alberta and Tolko, explains Heinz Zierl, Plant Manager of the future operation. "The plant and part of our forest resource lie within the Athabasca River watershed basin," says Zierl. "We expect a large number of our future employees and contractors will be drawn from this region as well."

The Athabasca area has played an important role in northern Alberta's history and Tolko, adds Zierl, is keen on being a significant part of the province's future.

Once operational in Fall 2007, this $250 million project will provide the area approximately 125 permanent jobs in the plant and approximately 125 jobs through related woodlands activities. This is in addition to the employment provided by the continuing operation of Tolko's oriented strand board plant in Slave Lake. With spin-off effects, the economic benefits of Athabasca Division will multiply throughout the region.

To accommodate this growth, Tolko is ensuring that the Town of Slave Lake and Municipal District of Lesser Slave River are aware of the upcoming housing needs. "We are asking them to do what they can to encourage the progress of timely residential development to accommodate the anticipated housing demands," says Zierl.

Tolko is a Canadian-owned forest products company based in Vernon, British Columbia, that manufactures and markets specialty forest products to world markets. In Alberta, Tolko operates three forest product manufacturing facilities, including an existing oriented strand board plant in Slave Lake, and woodlands. The Company provides direct employment to over 630 people in Alberta, with this number increasing to over 1800 during peak harvesting season. Additional project information is available at www.TolkoAthabasca.com

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