BASF Corporation and Tembec, Incorporated Enter Into Long Term Agreement Concerning the Oriented Strand Board Market.

Business Editors

MOUNT OLIVE, N.J.--(BUSINESS WIRE)--Dec. 27, 1999

BASF Corporation of Mount Olive, New Jersey and the Resin Division of the Tembec, Incorporated, Quebec, Canada entered into a long term agreement allowing Tembec to promote the use of BASF's "binder" products to the Oriented Strand Board Industry in the NAFTA Region. In North America, Tembec is the exclusive distributor for BASF`s Lupranate(R)(1) polymeric MDI products specifically designed for use in engineered wood products. This new agreement marks the beginning of a cooperative effort that will bring the combined binder technology, know-how and products of two industry leaders to customers throughout North America, providing customers more options and better technology.

"The Resin Division of Tembec, Incorporated has had a significant ongoing presence as a leading supplier of phenolic resins for the production of oriented strand board", said Don Mente, Technical Manager, Woodbinder Applications of BASF Corporation. "Tembec`s current product line and technical expertise makes that company the ideal partner for BASF Corporation in this growing market in the NAFTA region." BASF Corporation brings the technology and know-how of its polymeric MDI, which has gained wide acceptance in the market as a binder in the production of oriented strand board and other engineered wood products.

Key to the success of this relationship will be the combined technical efforts of the two companies to promote existing products of each company as well as the development of new products that will take advantage of the performance and cost benefits of the both company's resins.

BASF is among the top five producers of chemicals and related products in the United States, Canada and Mexico, with sales of $7.2 billion in 1998. BASF in North America has its regional headquarters in Mount Olive, NJ, and is a member of the BASF Group (Ludwigshafen, Germany). "We don't make a lot of the products you buy. We make a lot of the products you buy better.(R)(2)" summarizes the diverse product mix BASF offers, such as chemicals, polymers, automotive coatings, colorants, pharmaceuticals, nylon fibers and agricultural products. BASF in North America employs more than 15,000 people and has an Internet site at http://www.basf.com. For further information, please contact:

BASF Corporation, 1609 Biddle Ave, Wyandotte, MI 48192; Mr. Don Mente, Technical Manager, Woodbinder Applications; 800-521-9100; 734-324-6581; email: [e-mail]

BASF Canada Incorporated, 345 Carlingview Drive, Toronto, On M9W 6N9; Karl Dondorff ,Technical Manager, Woodbinder Applications; 416 674-2858 Phone; 416-674-2878 Fax; email: [e-mail]

Resin Division of Tembec Inc, Temiscaming, Quebec, JOZ 3RO; Mr. Daniel G Bourassa, Marketing Manager; 613-932-7047 Phone; 613-932-0682 Fax

(1)Lupranate is a registered trademark of BASF Aktiengesellschaft;

(2) is a registered trademark of BASF Corporation.