Prince George, BC - Brink Forest Products Ltd. today announced it has acquired Palliser Lumber Sales Ltd. located in Crossfield, Alberta. The transaction will combine the two largest remanufacturers in BC and Alberta. Collectively the Brink Group of Companies will employ nearly 500 employees and will have a production capacity of 500 million board feet per year making it the largest remanufacturer of lumber products in Canada.

In the past three years, Brink has built two new fingerjoint lines at its Prince George facility and acquired Pleasant Valley Remanufacturing Ltd. located in Houston, BC in November 2003. "We have embarked on this aggressive growth strategy in response to our customers’ growing need for quality lumber products and the increasing consolidation of the primary sector in BC," said John A. Brink, President and CEO of Brink Forest Products Ltd. "The Brink acquisition of Palliser brings the two largest and most successful remanners in Canada together and this will ensure synergies in marketing and distribution of manufactured wood products," he added. "It will also provide added purchasing power in the constant pursuit of suitable raw materials for remanufacturing and fingerjointing." Mr. Brink believes that the two companies are an excellent fit providing significant benefits both strategically and geographically.

"The two companies complement each other in many operational areas which will create very positive strategic synergies as we move forward," said Howie Kroon, President and CEO of Palliser. "Both companies specialize in the processing of low grade lumber into value added lumber products which will assist us greatly as we pursue "industry best practices" and new markets/products," he added. Palliser Lumber will continue operating indefinitely under the Palliser name as a wholly owned subsidiary of Brink Forest Products. "The management team under the direction of former owners Doug Currie and Jim Thorogood, have done a good job of keeping the company profitable under difficult circumstances and we intend to capitalize on this excellent base, with the assistance of the existing management team, as we move forward," says Mr. Brink.

"We started Palliser Lumber in 1979 as a small wholesaling business with seven employees located south of Calgary, in a small multi-use building," said Doug Currie. "Since then it has grown steadily to be Alberta’s largest secondary manufacturer and the Brink acquisition is the logical next step in the growth of the company," he added. Jim Thorogood, former President and majority shareholder of Totem Building Supplies Ltd. believes that the timing and fit could not be better. "I believe that this purchase offers security and greater opportunity to our employee base at Palliser Lumber. In addition, Doug and I will do our part in the transition period to ensure this acquisition is a positive one," he said.

"This year we at Brink Forest Products Ltd. commemorate our thirtieth year of operations," said John Brink. He adds, "I can think of no better way of celebrating this significant milestone than by this acquisition. We have a great deal of respect for Palliser and its people and we welcome them to the Brink Group of Companies," he said. John Brink believes that this merger offers major synergies and opportunities to create value, build the value added sector in BC and Alberta, and establishes a sound foundation for future growth.