MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

December 14, 2007 12:00 ET

MagForestry Signs Major Wood-Chip Sales Agreement

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2007) - MagForestry Inc., (the "Company") a division of MagIndustries Corp. (TSX VENTURE:MAA) is pleased to announce the signing of an agreement (the Agreement) for the sale and delivery of eucalyptus wood chips to a major European pulp and paper producer. The wood chips will be provided by Eucalyptus Fibre Congo S.A., ("EFC") a 100% owned subsidiary of MagForestry based in Pointe-Noire, Republic of Congo. EFC is in the final stages of completing the construction of a 500,000 tonne per year, wood chipping facility located within the deep water port of Pointe-Noire.

The Agreement calls for the delivery of an aggregate of 268,000 tonnes of wood chips in 2008 and in 2009 at delivered prices in excess of US$200 per tonne (C&F). The purchaser has an option to extend the contract for an additional year at the same price. The first shipments are expected to start in the second quarter of 2008.

MagForestry is also pleased to announce the signing of an agreement with Mitsui O.S.K. Lines, Ltd. who will provide a specialized bulk carrier for delivery of the wood-chips. This vessel will be dedicated for the delivery of the above mentioned off-take contract. MagForestry expects to complete additional wood-chip sales agreements in the first quarter of 2008.

About Eucalyptus Fibre Congo

EFC is an established renewable forestry operation previously owned and operated by a division of Shell Oil International (Shell Renewables). The operations of EFC are based on the planting and harvesting of fast-growing clones of eucalyptus trees which reach 22 to 26 meters (70 to 85 feet) in seven years at which point they are harvested and the area replanted. EFC currently holds an exclusive 70 year concession agreement with the Government of The Republic of Congo. The plantation concession covers 68,000 hectares of which 42,000 hectares are planted.

EFC shipped about 200,000 tonnes of round logs to European customers in 2007 for proceeds of some US$19 million. EFC will continue to ship logs through the first quarter of 2008 after which the bulk of sales will be in wood-chips. Forestry operations continue to be streamlined through the acquisition of new equipment, training programs and competitive contract harvesting practices. EFC is now the largest private employer in the Republic of Congo.

The worldwide market for eucalyptus chips is currently strong. MagForestry's total revenue in 2008 will be predominantly based on wood-chips and are projected to be in excess of US$50 million.

EFC is currently expanding its tree nursery to not only support the re-planting of all harvested areas but also the planting of 22,000 hectares of additional lands. The EFC operations represent one of the World's largest renewable-sustainable forestry operations that lies within a 35km radius of a deep-water port (Pointe-Noire). Once the operations reach full production capacity in about 7 years, wood-chip production could reach 1.5 million tonnes annually.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX Venture Exchange and trade in Canadian currency under the symbol "MAA". The Company has 193,924,016 shares outstanding on an undiluted basis. More information on the Company is available at its website, www.magindustries.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, and other risks detailed from time-to-time in the Company's ongoing filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.

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