Sino-Forest Corporation
TSX : TRE.A

Sino-Forest Corporation

June 12, 2007 09:22 ET

Sino-Forest Corporation Completes $201,135,000 Public Offering

TORONTO, ONTARIO--(Marketwire - June 12, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES

Sino-Forest Corporation (TSX:TRE.A) today announced that it has completed a public offering of 15,900,000 common shares at Cdn$12.65 per share for gross proceeds of Cdn$201,135,000. The offering included the exercise of the over-allotment option by the underwriters to purchase 2,000,000 common shares. The offering was underwritten by a syndicate led by Dundee Securities Corporation and included CIBC World Markets Inc., Credit Suisse Securities (Canada) Inc., Merrill Lynch Canada, Inc., UBS Securities Canada Inc. and Haywood Securities Inc. In addition to the offering in Canada, a portion of the offering was sold on a private placement basis in the United States, Asia and elsewhere.

"This successful offering solidifies Sino-Forest's foundation upon which we can execute our growth strategy", said Allen Chan, Chairman and Chief Executive Officer.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Sino-Forest Corporation

Sino-Forest Corporation, a Canadian company, is a leading commercial forestry plantations operator in China. The company started its operations in 1994 and is the first foreign and privately managed operator involved in forest products in China. Its principal businesses include the ownership and management of forestry plantation trees and sales of standing timber, wood chips and logs, and complementary manufacturing of downstream engineered-wood products. The Corporation's common shares trade on the Toronto Stock Exchange under the symbol TRE since 1995.

Please note: This press release contains projections and forward-looking statements regarding future events. Such forward-looking statements are not guarantees of future performance of the Company and are subject to risks and uncertainties that could cause actual results and company plans and objectives to differ materially from those expressed in the forward-looking statements. Such risks and uncertainties include, but not limited to, changes in China and international economies; changes in currency exchange rates; changes in worldwide demand for the Company's products; changes in worldwide production and production capacity in the forest products industry; competitive pricing pressures for the Company's products and changes in wood and timber costs.

Contact Information

  • Sino-Forest Corporation (Toronto)
    Dave Horsley
    Senior Vice President & Chief Financial Officer
    (905) 281-8889
    Email: davehorsley@sinoforest.com
    or
    Sino-Forest Corporation (Hong Kong)
    Louisa Wong
    Manager, Investor Communications & Relations
    +852 2514 2109
    Email: louisa-wong@sinoforest.com