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Sino-Forest Enters into Agreement to Sell Gaoyao Plant Equipment

Posted on: Tuesday, 31 March 2009, 07:00 CDT

TORONTO, March 31 /PRNewswire-FirstCall/ - Sino-Forest Corporation ("Sino-Forest") (TSX:TRE), a leading commercial forest plantation operator in China, announced today that its subsidiary, Guangdong Jiayao Wood Products Development Co, Ltd., has signed an equipment assignment contract with an arm's length third party purchaser to sell the particleboard manufacturing equipment at its plant in Gaoyao, Guangdong Province for a total price of approximately US$30 million. The contract provides that the purchase price will be paid to Sino-Forest in various instalments over a six-month period. Sino-Forest will retain ownership of the manufacturing building and property. The purchaser is expected to lease these Gaoyao premises from Sino-Forest and operate the equipment in the premises, subject to final terms and conditions of the lease agreement.

Sino-Forest Chairman and CEO Allen Chan said, "The sale of the equipment will allow us to better focus on our manufacturing strategy of developing a portfolio of smaller-scale processing facilities that is closely integrated with our plantation operations. This strategy helps maximize the use and value of our wood fibre, and increase employment in rural areas - an important government objective. In addition, we will continue to develop our Sino-Maple brand of wood products, which utilize fibre from our own plantation resources."

About Sino-Forest Corporation

Sino-Forest Corporation is a leading commercial forest plantation operator in China. Its principal businesses include the ownership and management of forest plantation trees, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products. The company's common shares have traded on the Toronto Stock Exchange under the symbol TRE since 1995.

Please note: This news 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.

SOURCE Sino-Forest Corporation

Source: PR Newswire

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