International Forest Products Limited

International Forest Products Limited

March 28, 2005 19:00 ET

Interfor, Province Reach Agreement on Compensation for Timber Reallocation


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INTERNATIONAL FOREST PRODUCTS LIMITED

TSX SYMBOL: IFP.SV.A

MARCH 28, 2005 - 19:00 ET

Interfor, Province Reach Agreement on Compensation for
Timber Reallocation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 28, 2005) -
International Forest Products Limited ("Interfor") (TSX:IFP.SV.A)
announced today that it has concluded a comprehensive agreement with the
Province of British Columbia to compensate the Company for loss of
forest tenure through the government's timber reallocation program.

Interfor will receive $21.7 million in compensation for the loss of
logging rights on the B.C. Coast. Included in this amount is an advance
payment against lost infrastructure. As a result of the reallocation,
the Company's annual harvest base will be reduced by about 579,000 cubic
metres from replaceable tenure plus a reduction of 20% from timber
licences.

The reallocation is part of the B.C. Government's Forestry
Revitalization Plan which was introduced in March 2003. Under the plan,
major forest licensees were required to return 20% of their replaceable
tenure to the Province. Approximately half of this timber volume is to
be redistributed to create opportunities for woodlots, community forests
and First Nations. The other half will be available for public auction
to stimulate market conditions.

In response to the government's revitalization plan, Interfor announced
in August 2004 the $25-million rebuild of its sawmill in New
Westminster. The new mill is scheduled to be in start-up mode in early
April. This project represents the first major capital re-investment in
the Coastal industry in many years.

Interfor is one of the Pacific Northwest's largest producers of quality
wood products for sale to markets around the world. The company has
operations in British Columbia, Washington and Oregon, including five
sawmills in the Coastal region of B.C., one in the B.C. Interior, two
sawmills in Washington and one in Oregon. Interfor also operates a
number of value-added remanufacturing and specialty products facilities
in B.C. and Washington.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    International Forest Products Limited
    Steve Crombie
    Director, Public Affairs & Communications
    (604) 689-6806
    www.interfor.com