BUFFALO GROVE, Ill. (November 20, 2007) — PROFILE Products LLC (Profile) and Canadian Forest Products Ltd. (Canfor) announce that they have reached agreement in principle for Profile to purchase the hydraulic mulch product manufacturing assets and EcoFibre® brands of Canfor’s Panel and Fibre Division. Canfor previously announced on November 9, 2007 that the Panel and Fibre Division will close permanently. The acquisition will position Profile to further expand production and distribution of hydraulic mulch and other erosion control products throughout North America. The transaction is contingent upon the completion of due diligence and is expected to close by December 31, 2007.

The pending acquisition is the latest in a series of recent actions taken by Profile to bring new erosion control technologies, increased manufacturing capacity and improved service to broader segments of the market. According to John Schoch, CEO of Profile, the company’s goal is to ensure there is a reliable supply of the most advanced erosion control products across the continent as well as overseas.

“Our acquisition of Canfor’s Panel and Fibre mulch manufacturing assets, intellectual property and remaining inventory is in keeping with our commitment to meet the varied needs of every customer in a timely and efficient manner,” said Schoch. “The acquisition will combine two internationally respected hydraulic mulch product lines and brands that feature the superior technology of thermal wood refining. Canfor’s EcoFibre brand will join Profile’s market leading brands including Conwed® and Terra-Mulch® hydraulic mulch, Flexterra® Flexible Growth Medium™, and Hydro-Blanket® Bonded Fiber Matrix among others. It is our goal to make the best technology broadly available so no one ever has to compromise on the quality of their erosion control solution.”

Profile’s service level to North American and the international markets is also being enhanced by recent, major capital investments to expand the production capacity of its Conover, N.C. facilities and the completion of an expansion of the Sanger, Calif. manufacturing plant. A new, 150,000 square-foot distribution center located in Hickory, N.C. went online in August, 2007 to support the Conover manufacturing plant.

Schoch indicated that Profile is planning to establish at least one west coast distribution center in addition to Sanger to further ensure timely and efficient service to western U.S., Canadian and Asia Pacific customers as it determines the ideal location for manufacturing west coast products. The company is gearing up to exceed the anticipated needs for erosion control products in the west coast market. Over the next 30-60 days Profile will begin expanding its west coast sales and technical team as the acquisition of Canfor assets is finalized, the new capacity is brought online in Conover and a new west coast distribution center is established.