Mr. Michel Dumas reports

TEMBEC ANNOUNCES CLOSING OF SENIOR SECURED NOTES OFFERING AND EXTENDS MATURITIES TO 2019

Tembec Inc.'s wholly owned subsidiary, Tembec Industries Inc., has completed its previously announced private offering of $375-million (U.S.) in aggregate principal amount of 9-per-cent senior secured notes due 2019.

The proceeds from the offering will be used to (i) purchase and redeem all of the company's existing 11.25-per-cent senior secured notes due 2018, (ii) repay a portion of the borrowings outstanding under the company's asset-based revolving credit facility, and (iii) pay fees and expenses incurred in connection with these refinancing transactions.

The notes were sold in a private offering in the United States only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended, and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act, including in certain provinces of Canada on a private-placement basis to accredited investors.

We seek Safe Harbor.