Network Forest Products Receives Letter of Intent from Michipicoten First Nation

Business Wire, June 17, 1999

TORONTO--(BUSINESS WIRE)--June 16, 1999--

Network Forest Products, Ltd., a wholly-owned subsidiary of Value Holdings, Inc. (OTC BB:VALH), today announced that it has received a letter of intent from the Michipicoten First Nation requesting a joint venture where Network will provide machinery, financing, technical assistance and training to High Falls Lumber Ltd., for the creation of a pallet manufacturing and a lumber remanufacturing facility.

Network and the High Falls Lumber Company Ltd., which is owned by the Michipicoten First Nation, will develop a facility in High Falls, Ontario, that would produce wood pallets which are widely used in the storage and transportation of a broad range of products. Pallets are generally made of low grade lumber that cannot be used in building. Additionally, Network and High Falls anticipate assembling a lumber remanufacturing facility in High Falls. The remanufacturing process allows low grade lumber to be turned into a higher grade lumber suitable for various uses and commanding a higher price. This process allows for the use of low grade lumber that would otherwise be considered waste or for low value uses.

"Our new relationship with the Michipicoten First Nation and High Falls Lumber gives us a great opportunity to use the remanufacturing expertise we have developed to provide economic development opportunities for the Michipicoten First Nation and to more efficiently use our natural resources," said Robert Ziner, president and CEO of Value Holdings and Network Forest Products. "By remanufacturing lumber we can increase the value we get from each tree and in the long run use fewer trees."

The letter of intent calls for Network to provide machinery, financing, technical assistance and training to High Falls Lumber. The venture between the parties is subject to final negotiation.

Value Holdings, Inc. is a holding company formed to acquire businesses. The corporate goal is to build well-run independent subsidiaries which have solid market niches with compounded growth rates in terms of revenues and earnings.