Press Release dated Dec 29, on Tembec/Pine Falls

Published Jan 10, 2000 00.00.00 +2 GMT

IT WAS RECENTLY REPORTED THAT VALMET INC. WILL SUPPLY A NEW TMP PLANT TO PINE FALLS PAPER COMPANY IN PINE FALLS, MANITOBA, CANADA. THIS NOTICE IS TO SERVE AS CLARIFICATION THAT THE AGREEMENT REACHED BETWEEN PINE FALLS PAPER COMPANY AND VALMET INC., IS AN AGREEMENT IN PRINCIPLE FOR PINE FALLS PAPER COMPANY TO PURCHASE THE NEW TMP PLANT FROM VALMET INC. SUBJECT TO APPROVAL OF THE PROJECT BY THE BOARD OF DIRECTORS OF PINE FALLS PAPER COMPANY LIMITED.