Paper Industry September 2004 News

Stora Enso finalises the Scaldia Papier acquisition

Stora Enso Oyj Press Release 1 September 2004 at 6:00 GMT

Stora Enso and International Paper have closed the previously announced acquisition of Scaldia Papier. The regulatory authorities have approved e in China

Stora Enso Oyj Press Release 28 October 2004 at 11:00 GMT

Stora Enso is starting a joint venture with Shandong Huatai Paper of China. The parties will initially conduct a prefeasibility study concerning publication paper production in China, including a market analysis and an investigation of the possibility of transferring an existing paper machine to China. The prefeasibility study is expected to be completed in March 2005. Stora Enso will have a majority shareholding in the joint venture.

Shandong Huatai Paper is a company listed on the Shanghai Stock Exchange with sales of EUR 160 million in 2003. It is part of the Huatai Group, which is involved in paper manufacture, the chemicals industry, printing, energy, forestry, logistics and trading. The Huatai Group has over 8 000 employees, including about 3 700 at Huatai Paper. All of the company's paper and board manufacturing assets are located in Shandong province and its annual production capacity is 800 000 tonnes of paper and board.

Tembec Acquires Shares of Riverside Forest Products Limited

Montreal (Quebec), 28 September 2004 – Tembec today announced that it has acquired and owns an aggregate of 665,000 common shares of Riverside Forest Products Limited ("Riverside") representing in aggregate 7.05% of the outstanding shares of Riverside. Tembec acquired the Riverside shares through the facilities of the Toronto Stock Exchange for investment purposes. Tembec is participating in Riverside's publicly announced strategic review process in respect of a possible business combination between the parties. There can be no assurance that any such discussions will be successful or that such arrangement or business combination will be concluded. Tembec may dispose of all or any portion of its Riverside shares at any time and from time to time.

Tembec is a leading integrated forest products company, well established in North America and France. With sales of approximately $4 billion and some 11,000 employees, it operates 50 market pulp, paper and wood product manufacturing units, and produces chemicals from byproducts of its pulping process. Tembec markets its products worldwide and has sales offices in Canada, the United States, the United Kingdom, Switzerland, China, Korea, Japan, and Chile.

The Company also manages 40 million acres of forest land in accordance with sustainable development principles and has committed to obtaining Forest Stewardship Council (FSC) certification for all forests under its care by the end of 2005. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TBC. Additional information is available at www.tembec.com