Tembec reaches 7-year settlement with employees from its 250,000 tonnes/year Matane high-yield pulp mill, ending strike; operations, suspended since May 10, expected to resume on Sept. 11

MONTREAL , August 18, 2011 (press release) – Tembec reached a settlement with its Matane high-yield pulp mill employees who, last night, voted to end the strike. Employees will return to work gradually as of August 22and operations are expected to resume on September 11. Production at this plant has been suspended since May 10, 2011.

The settlement covers a 7-year agreement that will expire in October 2016.

The plant in Matane employs 143 people, of which 99 are unionized and ships to customers in North America, Europe and Asia. Its production capacity is 250,000 tonnes per annum.

Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company's principal operations are located in Canada and France. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available on its website at www.tembec.com.

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