Tembec Inc. is Pleased to Announce the Formation of an International Sales and Trading Company, Tembec International Sales Co

Business Wire, May 19, 1998

TORONTO--(BUSINESS WIRE)--May 19, 1998--TEMBEC INC.(ME:TBC.A.) (TSE:TBC.A.) (ME:TBC.DB.U.) (TSE:TBC.DB.U.) Tembec Inc. is pleased to announce the formation of an international sales and trading company, Tembec International Sales Co. (TISCO).

The company, which will be headquartered in Toronto, Canada, has established sales and marketing offices in Nyon, Switzerland and Beijing, China, with other locations currently under consideration. Tembec is active in the sales of pulp, newsprint, lumber, packaging board and chemicals to all major world markets, with export sales approaching $1 Billion annually. The establishment of TISCO centralizes the company's export sales under one group and reaffirms the company's strategic intent of focusing on improved service and support through direct representation to its international customers.

TISCO will also be securing marketing agreements with producers of complimentary forest products, chemicals and equipment to provide customers with a full product range.

Mr. Terrence P. Kavanagh, continuing in his role as President of Tembec's Pulp Group, will act as President & CEO of the new company. Mr. Frank Graves will assume day-to-day operating responsibility as Executive VP & COO, with Mr. Christer Wallin as Executive VP Europe and Mr. Tiean Huang as General Manager Tembec Beijing.

Tembec Inc. is an integrated Canadian forest products company with sales revenues in excess of $1.6 Billion annually, derived primarily from core business activities in lumber, pulp, publishing papers and paperboard. Tembec's principle manufacturing sites are centered in Eastern Canada. The company is also partnered with the Aditya Birla Group of India at a manufacturing site in New Brunswick, and with Cascades Inc. of Canada at a site in France. Tembec's products are sold in over 40 countries world wide.

Tembec's Class A Shares and 6.5 percent convertible unsecured subordinated US dollar denominated debentures are listed on the Toronto Stock Exchange and the Montreal Stock Exchange respectively under the symbol TBC.A and TBC.DB.U.

CONTACT: Tembec Inc.

Terrence P. Kavanagh, 819/627-4235

or

Tembec Inc.

Frank Graves, 416/864-0595