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FLETCHER CHALLENGE CANADA COMPLETES ACQUISITION OF CROWN FOREST ASSETS

 VANCOUVER, British Columbia, Feb. 18 /PRNewswire/ -- Fletcher Challenge Canada Ltd. (Toronto, Montreal, Vancouver: FCC) today completed the acquisition of the Canadian forest products assets of Crown Forest Industries Ltd., a subsidiary of Fletcher Challenge Ltd. of New Zealand. The price for the Crown Forest assets was C$877 million plus working capital.
 To help finance the acquisition, the company today issued 12,421,053 class A common shares to the public for approximately C$170 million after associated expenses. The Fletcher Challenge Ltd. group provided C$450 million in equity as well as a credit facility to complete the financing for the acquisition, and will continue as a 72 percent shareholder in Fletcher Challenge Canada Ltd.
 The Crown Forest Assets include the Elk Falls pulp, paper and lumber complex near Campbell River, British Columbia and 122,000 hectares of private timberlands. Fletcher Challenge Canada Ltd. has managed these assets on behalf of Crown Forest since 1988.
 "The Crown Forest facilities are unique, high-quality assets and they complement those of the company very well," said Doug Whitehead, Fletcher Challenge Canada Ltd. president, "Their specialty product focus will diversify the company's product mix and provide enhanced margins.
 "With major capital upgrades behind us at our existing and newly acquired facilities, the company is in a position to significantly improve its cash flow and earnings as forest products markets recover," Whitehead noted.
 The company now has the capacity to produce annually almost 1 million tons of newsprint and groundwood specialty papers, more than 700,000 tons of market kraft pulp, more than 400,000 tons of lightweight coated paper, more than 80,000 tons of kraft paper and 900 million board feet of lumber.
 -0- 2/18/93
 /CONTACT: John Graf, VP and Treasurer, 604-654-4383; or Tom Williams, assistant director, Public Affairs, 604-654-4465, both of Fletcher Challenge Canada/
 (FCC.A)


CO: Fletcher Challenge Canada Ltd. ST: British Columbia IN: PAP SU:

EH -- LA031 -- 7866 02/18/93 11:45 EST
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Date:Feb 18, 1993
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