CanWel Building Materials Group Ltd.
TSX : CWX.UN

CanWel Building Materials Group Ltd.

October 24, 2006 09:07 ET

CanWel Announces Expansion of Imported Plywood Program-Appointed as National Distributor of Arauco Plywood Products

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 24, 2006) -

NOT FOR RELEASE OR DISSEMINATION INTO THE UNITED STATES

CanWel Building Materials Ltd. ("CanWel"), a wholly owned subsidiary of CanWel Building Materials Income Fund (the "Fund") (TSX:CWX.UN), is pleased to announce that effective immediately, CanWel will become a national distributor for Arauco Plywood Products.

Arauco is the leading forestry company in South America and one of the world's largest forest products companies in terms of plantation holdings, kraft pulp, lumber, and panel production. This accomplishment has been achieved through its extensive forest resources and industrial facilities within Chile, Argentina and Brazil.

Arauco's panels are produced in different grades for appearance, structural, forming, and multipurpose uses for many diverse applications. Arauco's total softwood plywood capacity will reach 800,000 cbm by the end of 2007, positioning Arauco as one of the world's top 10 plywood producers.

All of Arauco's forestry activities have been ISO 14001 certified and their plantations are certified under the CERTFOR standard, which is similar to the PEFC standard. CanWel will add Arauco plywood to its national network of distribution centers for sale to its retail and buying group customers.

"The wood panels product category has been an area that CanWel continues to focus on developing. The key was to identify and develop a partnership with a world class manufacturer such as Arauco," noted Tom Donaldson, CanWel's CEO.

"We are very excited with the success and growth of AraucoPly in the Canadian market. CanWel's commitment and performance with our product line has been outstanding," noted Russ Jordan Manager, North American Panels Division Arauco Wood Products.

The Fund trades on the Toronto Stock Exchange under the symbol CWX.UN and is one of Canada's largest national distributors in the building materials and related products sector, operating 17 distribution centers across Canada. The Fund distributes a wide range of hardware, building materials, lumber and renovation products.

Further information on the Fund can be found in the disclosure documents filed by CanWel Building Materials Income Fund with the securities regulatory authorities, available at www.sedar.com.

Certain statements in this press release may constitute "forward-looking" statements. When used in this press release, such statements use words, including but not limited to, "may", "will", "expect", "believe", "plan", "intend", "anticipate" and other similar terminology. These forward-looking statements reflect the current expectations of the Fund's management regarding future events but involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund, including the performance of, and distributable cash generated by the Fund, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events could differ materially from those projected herein and depend on a number of factors. These factors include the risk that the new product lines will not be integrated successfully, may or may not be purchased by CanWel customers, that competing firms which manufacture or distribute competitive product lines will aggressively defend or seek market share reducing, eliminating or reversing any potential positive economic impact on the Fund of the new product lines; the risk that any increased sales, margin, profit or distributable cash resulting from the new product lines may not be fully realized, realized at all or may take longer to realize than expected; and disruption from the introduction and implementation of the new product lines making it more difficult to maintain relationships with customers, employees or suppliers. Additional risks and uncertainties include, among others: general economic and business conditions, product selling prices, product performance, design and liability risk, software and software design risk, commodity price fluctuations, information systems risk, foreign exchange risk, political risks, interest rate changes, operating costs, and competitive conditions. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the periodic and other reports filed by the Fund with Canadian Securities Commissions and available on Sedar (http://www.sedar.com). The Fund does not undertake, and specifically disclaims, any obligation to update or revise any forward looking information, whether as a result of new information, future developments or otherwise.

Reference is also made to distributable cash of the Fund. This is a non-GAAP measure generally used by Canadian open-ended income funds as an indicator of financial performance. We define distributable cash as net earnings before depreciation, amortization, gain or loss on sale of fixed assets, provision for future income taxes, stock based compensation and after maintenance of business capital expenditure and contributions to any reserves the Board of Trustees deem to be reasonable and necessary for the operations of the Fund.

Contact Information

  • CanWel Building Materials Income Fund
    Tom Donaldson
    President and CEO
    (604) 432-1400
    or
    CanWel Building Materials Income Fund
    Ali Mahdavi
    Investor Relations
    (416) 962-3300 or 1(866) 430-6247
    Email: amahdavi@genoa.ca