John Weaver, Chairman of the Board of the Forest Products Association of Canada (FPAC), today announced that the Board of Directors has accepted Mercer International Inc.’s application for membership in the Association effective October 1, 2007.

“We’re delighted to have Mercer International join our ranks,” said Avrim Lazar, President and CEO of FPAC.  “The company is progressive and growing rapidly and their efforts and experiences in power generation will be invaluable to the work carried out by FPAC’s members as they focus on moving the industry towards energy self-sufficiency. In this context, Mercer represents an important voice at the FPAC table.”

Mercer entered the European pulp and paper sector in the mid 90s and expanded into North America in 2005 when it purchased a pulp mill in Castlegar, British Columbia. The company also has two pulp mills in Germany.  Its consolidated annual production capacity is approximately 1.4 million tonnes. 

“FPAC has proven itself to be a very effective voice for its members – both with government and in the marketplace,” said David Gandossi, Executive Vice President and Chief Financial Officer for Mercer International Inc.  “The industry is currently facing a very challenging economic period and working together to address common industry issues related to sustainable development and economic growth is more important than ever.  Mercer is looking forward to participating in a manner that will positively impact our operations, our employees, the community of Castlegar, and our colleagues at FPAC.”

FPAC is the voice of Canada’s wood, pulp and paper producers nationally and internationally in government, trade and environmental affairs.  Canada’s forest industry is an $80 billion dollar a year industry that represents 3% of Canada’s GDP.  The industry is one of Canada’s largest employers, operating in over 320 Canadian communities and providing nearly 900,000 direct and indirect jobs across the country.

– 30 –

For more information, contact:

Laura Ballance
Curve Communications
604-684 3170
604 771 5176 (cell)

Isabelle Des Chênes
Director, Communications
Forest Products Association of Canada
(613) 563-1441 ext: 323

David Gandossi
Executive Vice President and Chief Financial Officer
Mercer International Inc.