Grand Forks and Castlegar Saw Mills to Shut Down for Two Weeks Due to Market Conditions

Financial Highlights for Second Quarter of 2007: -- Second quarter 2007 net loss widens to $2.62 per share from $1.15 in first quarter of 2007 -- Credit agreement in default due to inability to meet required EBITDA covenant -- Strengthening Canadian dollar increased operating loss by an estimated $9.4 million for the second quarter of 2007 as compared with the first quarter of this year -- Pulp revenues of $137.9 million increased 19 percent from the second quarter of 2006 -- Increased product shipments from one year ago; Wood Products shipment up 10 percent to 248.0 million board feet

Nanaimo, BC pulp mill to curtail one line due to high wood fiber costs