MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

August 15, 2007 08:00 ET

MagIndustries Corp.: MagForestry Operations Update

TORONTO, ONTARIO--(Marketwire - Aug. 15, 2007) - MagForestry, (the "Company") a division of MagIndustries Corp. (TSX VENTURE:MAA) is pleased to report on its current forest product operations and its future business plans. MagForestry owns 100% of Eucalyptus Fibre Congo (EFC) 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. Shell's long term strategy was to establish a renewable, sustainable high-yield source of biomass for future energy generation. 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 log shipments in the first half of 2007 were well below forecasts as the Company focused on optimizing operations. Current orders for the balance of the year indicate that the annual forecast of about 280,000 tonnes can still be met for gross proceeds of about US$10 million. All shipments to date have been made to pulp and paper and fibreboard plants in Europe and North Africa. 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.

Earlier this year, MagForestry began the construction of a log chipping plant on its harbour side lands located in the port of Pointe-Noire. Construction of this US$28 million facility is approximately 50% complete and virtually all materials are now on site. Commissioning of the 500,000 tonne per year (tpy) plant is expected to occur in January 2008 with first commercial shipments of wood-chips soon thereafter.

Sales contracts for the 2008 production capacity of the wood-chip plant are currently being finalized and are expected to be concluded by October 2007. Prices for eucalyptus chips continue to be strong. Total forestry product sales in 2008, which will be predominantly based on wood-chips, are projected to be between US$25 and US$30 million.

EFC is currently expanding its tree nursery to not only support the re-planting of all harvested areas but also the planting of 20,000 hectares of additional lands currently under application. The EFC operations represent one of the World's largest renewable-sustainable forestry operations lying within a 35km radius of a deep-water port (Pointe-Noire). Once the operations reach full production capacity in about 7 years, wood fibre 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 trades in Canadian currency under the symbol "MAA". The Company has 180,039,915 shares outstanding on an undiluted basis. More information on the Company is available at its website, www.magindustries.com.

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.

Cusip: 55917T 102

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

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