David Lauzon, President and Founder of LAUZON Distinctive Hardwood Flooring inc. is pleased to announce the participation of the Quebec government in a new $19 Million hybrid sawmill in Thurso, Quebec (Canada) – being Phase I of an ambitious $50 Million dollar investment strategy at its subsidiairy, LAUZON (Thurso) – Forest Resources.

Joining Mr. Lauzon for this important annoncement: the Minister of Economic Development, Innovations and Export Trade, Mr. Raymond Bachand, the Minister of Natural Resources and Wildlife, Mr. Pierre Corbeil, the Minister responsible for Canadian Intergovernmental Affairs, Francophones within Canada, the Agreement on Internal Trade, the Reform of Democratic Institutions and Access to Information (also Minister responsible for the Outaouais), Mr. Benoît Pelletier, the Chief Government Whip and Member for Papineau, Mr. Norman MacMillan and the Mayor of Thurso, Mr. Maurice Boivin.

"Over one year ago, we undertook a rigourous study of the hardwood forest industry in our quest for continued innovation and excellence. We concluded that our growth strategy must be channelled through innovative technology transfers and improvements of our hardwood manufacturing facilities and though the consolidation of wood allocation and harvesting contracts managed by the Quebec government" said Michel Pitre, General Manager of LAUZON (Thurso) – Forest Resources.

This study led to a revolutionary hybrid sawmill concept upon which Lauzon is building its future development strategy, designed to assert its competitiveedge as a major player in the high-end hardwood flooring industry worldwide. "Securing the hybrid sawmill project in Thurso depended heavily on the support of both the gouvernment of Quebec and of Canada which explains why we have been promoting the project so eagerly since June 2005”, added Mr. Pitre.

The Quebec government confirmed today its financial support and the Ministry of Natural Resources and Wildlife approved Lauzon’s wood allocation and harvesting consolidation strategy. “This sign of confidence in our vision demonstrates the Quebec government’s eagerness to create enticing investment opportunities for the hardwood industry in Quebec which we fully intend to seize to pursue our strategic development and maintain our competitiveness. Inversely, Quebec’s economy will be enriched from $200 M to $400 M per annum in export dollars reinjected in its economy resulting from the company’s export sales.

Additional investments and new jobs will be created following the construction of the hybrid sawmill as part of Lauzon’s $50 Million master plan to further enhance its multiple hardwood flooring and recycling operations. Not only is the hybrid mill project in-line with the government’s sustainable forest development plan to create export opportunities in value-added hardwood products. “To our knowledge, the Thurso hardwood converting process is unique in its kind in North America” says Mr. Pitre.

Coupled with the raw material supply now secured, Lauzon holds all the ingredients to maintain its competitive-edge and market leadership in the high-end wood flooring industry, in the wood recyling industry and soon, in the hardwood sawmill industry. “Furthermore, the Thurso mill project accelerates Lauzon’s ability to expand its product range at highly competitive prices worldwide, to reduce product turnover time in the chain of custody, to change over to a Just-in-Time production cycle and to provide a level of service which defines a world class corporation” concludes Mr. Pitre.

LAUZON’s success is the result of an aggressive differentiation strategy to maintain its competitive edge and to build customer awareness, achieved through tight and optimal coordination of marketing, sales and R&D initiatives be it technology or product related which led to highly successful brands such as LAUZON, ETERNA and DUBEAU. “The Thurso project is yet another example of our commitment to our mission statement and to our corporate differentiation strategy to deliver quality products and services worldwide and to constantly challenge the best in the industry”, concludes David Lauzon.

Founded in 1985 by its President, David Lauzon, the company will soon celebrate 22 years of unprecedented growth. It is one of few manufacturers in North America to enjoy integrated operations from the forest harvesting stage through a primary conversion into hardwood products, hardwood flooring, staining, finishing and recycling stages. A definite Canadian leader and amongst the five major hardwood flooring manufacturers in North America (first in Canada according to a serious NWFA survey), LAUZON has become a worldwide reference for its innovative flooring product, notably, for its LAUZON, ETERNA and DUBEAU brands marketed through an extensive distribution network in North America and overseas.

It is also a leader in recycling of hardwood residues it converts in wood energy products. LAUZON employs more or less 1000 and enjoys consolidated sales nearing $200 Million (CDN). Over 75 percent of its product is exported to key markets in the United States, Asia and Europe. Corporate offices are in Papineauville, Province of Quebec, near Ottawa, Canada’s Capital.

For more information, please consult www.lauzonflooring.com.