Canada's Ktunaxa Nation and Tembec sign Working Protocol and Consultation and Accommodation Agreement

July 28, 2004

Cranbrook (British Columbia), July 27, 2004

Tembec, represented by Frank Dottori, President and CEO, and the Ktunaxa Nation, represented by Kathryn Teneese, Administrator, today announced the recent signing of a Working Protocol and Consultation and Accommodation Agreement at the Delta St. Eugene Mission Resort.

Tembec BC Division’s Chief Forester, Troy Hromadnik, notes “the Working Protocol is intended to promote a positive and sustainable working relationship between the members of the Ktunaxa Nation and Tembec. Through mutual recognition and respect, the Working Protocol shall serve as a framework to enhance existing and future relationships.”

The Consultation and Accommodation Agreement governs Tembec’s activities within the Ktunaxa traditional territory, defines a process for consultation between the two parties, and identifies potential means to accommodate Ktunaxa interests.

Highlights of this agreement include:

*Development of a consultation process at various levels;

*Establishment of a Joint Management Advisory Committee (JMAC);

*Capacity and resource requirements;

*Information-sharing protocols;

*Revenue-sharing opportunities; and,

*Development of employment, training, contracting and business strategies.

Kathryn Teneese notes “the signing of this agreement is a huge accomplishment for the Ktunaxa Nation in that Tembec recognizes and respects the Ktunaxa’s historic and ongoing use and occupancy of lands and resources within Ktunaxa traditional territory.” She commends Tembec for setting the stage for the Ktunaxa to develop new relationships in economic development and resource management.

Established in the early 1970s, the Ktunaxa Kinbasket Tribal Council’s mission is to promote the political goals and developmental needs of the Ktunaxa Nation and Kinbasket people. The programs and services of the Council and its affiliates are available to the Council’s member Bands and their citizens living on- or off-reserve, as well as to other status and non-status persons living within the Ktunaxa traditional territory. Additional information on the Ktunaxa Kinbasket Tribal Council is available at www.kktc.bc.ca.

Tembec is a leading integrated forest products company, well established in North America and France. With sales of approximately $4 billion and some 11,000 employees, it operates 50 market pulp, paper and wood product manufacturing units, and produces chemicals from by-products of its pulping process. Tembec markets its products worldwide and has sales offices in Canada, the United States, the United Kingdom, Switzerland, China, Korea, Japan, and Chile. The Company also manages 40-million acres of forest land in accordance with sustainable development principles and has committed to obtaining Forest Stewardship Council (FSC) certification for all forests under its care by the end of 2005. Tembec’s common shares are listed on the Toronto Stock Exchange under the symbol TBC. Additional information is available at www.tembec.com

NOTICE: In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving this information for research and educational purposes.

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