Stella-Jones Announces Construction of a New Wood Treating Facility in Georgia

MONTREAL, QUEBEC--(Marketwire - Nov. 8, 2012) - Stella-Jones Inc. (TSX:SJ) today announced that it has begun construction of a new wood treating facility on a 40-acre tract of land in Cordele, Georgia, approximately 225 kilometers (140 miles) south of Atlanta. The project represents an investment of approximately US$11.0 million for Stella-Jones.

The Cordele facility will be primarily devoted to the production of railway ties, with an ultimate annual capacity of two million ties. Initial wood trimming activities are expected to begin in early January 2013, while treating activities should begin near mid-year. At start-up, the facility will provide work for an estimated 26 employees, and have in excess of 50 employees at full capacity.

"The City of Cordele is strategically located between the two fastest growing markets in the south-eastern U.S., namely Florida and the Atlanta metropolitan area. The region is well serviced by Class 1 railroad companies and several regional short-line railroads. This addition to our network will further enhance our product and service offerings to the railroad industry," said Brian McManus, President and Chief Executive Officer of Stella-Jones.

ABOUT STELLA-JONES

Stella-Jones Inc. (TSX:SJ) is a leading producer and marketer of pressure treated wood products. The Company supplies North America's railroad operators with railway ties, timbers and recycling services; and the continent's electrical utilities and telecommunications companies with utility poles. Stella-Jones also provides industrial products and services for construction and marine applications, as well as residential lumber to retailers and wholesalers for outdoor applications. The Company's common shares are listed on the Toronto Stock Exchange.

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, the ability of the Company to raise the capital required for acquisitions, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.