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June!30,!2006!18:51!ET!
Stella-Jones+Acquires+the+Assets+and+Operations+of+Bell+Pole+
Company+for+$50.1+Million+
WESTMOUNT,!QUEBEC--(CCNMatthews!-!June!30,!2006)!-!NOT!FOR!DISTRIBUTION!TO!U.S.!
WIRE!SERVICES!OR!FO R!DISTRIBUTION!INTO!THE!UNITED!STATES!
!
Stella-Jones!Inc.!(TSX:SJ)!is!p leased!to!announce!that!it!tod ay!completed,!through!a!wholly-
owned!subsidiary,!the!acquisi tion!of!substantially!all!of!the!assets!and!operations!of!Bell!
Pole!Company!("Bell!Pole"),!a!Canadian!manufacturer!of!wood!utility!poles!based!in!
Western!Canada.!The!acquisiti on!is!effective!on!July!1st ,!2006.!Bell!Pole!is!also!involved!in!
the!remanufacturing!and!treating!of!dimensional!lumber!in!Alberta.!
!
Assets !acquired!in clud e!a!pole!treating!plant!located!in!Carseland,!Alberta,!several!pole!
peeling!facilities!located!throughout!the!province!of!British!Columbia,!as!well!as!all!
inventories!and!accou nts!receivable.!Assets!acquired!also!include!substantial!cutting!rights!
in!Bri tish!Columbia!and!Alberta.!The!effective!transfer!of!these!cutting!rights!is!subject!to!
government!approval!under!applicable!laws.!Notice!to!pro ceed!has!been!received!from!the!
relevant!Governmental!authorities.!
!
Bell!Pole!is!the!wholly!owned!Canadian!subsidiary!ultimately!of!U.S.!based!Bell!Lumber!&!
Pole!Company!("Bell!Lumber").!Negotiations!following!the!earlier!announcement!by!Stella-
Jones!of!a!potential!acquisition!of!the!shares!of!Bell!Lumber!led!the!parties!to!conclude!that!
it!was!in!their!respective!best!interests!that!the!Company!acquire!the!Canadian!operations!
and!the!remaining!US!business!remain!in!Bell !Lumber!which!would!continue!to!be!owned!
and!operated!independently.!
!
The!purchase!price!total ed!$50.1!Million!of!which!$30.4!Million!was!for!inventory!and!
receivables.!Equity!funding!for!the!acquisition !was!provided!by!the!private!placement!of!
1,060,000!subscription!receipts!issued!on!May!2,!2006!for!a!total!consideration!o f!
$18,020,000!("Subscription!Receipts").!Following!the!closing!of!the!acquisition,!the!
Subscription!Receipts !are!to !be!exchanged!into!common!shares!of!the!Company,!on!a!one-
for-one!basis!.!T he!remainder!of!th e!purchase!price!was!financed!by!the!assumption!of!
liabilities,!to taling!$15.1!Million!a!$10!M illion!debenture!to!the!Fonds!de!Solidarite!des!
travailleurs!du!Quebec!as!well!as!additional!debt!funding!under!existing!and!new!bank!
facilities.!
!
For!its!l ast!fiscal!year!ended!December!31,!2005,!Bell!Pole!reported!sales!of!approximately!
$54,000,000!.!"We!are!very!pleased!with!this!acquisition!as!it!is!a!great!fit!with!our!
Company!and!will!be!immediately!accretive!to!earnings"!said!Brian!McManus,!President!
and!CEO!of!the!Company.!
!
ABOUT!STELLA-JONES!
!
Stella-Jones!Inc.!(TSX:SJ)!is!a!leading!North !American!producer!and!marketer!of!industrial!
treated!wood!products,!specializing!in!the!production!of!pressure!treated!railway!ties!as!
well!as!wood!poles!s upplied!to!electrical!utilities!and!telecommunications!companies.!
Other!principal!products!include!marine!and!foundation!pilings,!construction!timbers,!
highway!guardr ail!posts!and!treated!wood!for!bridg es.!The!Company!also!provides!
customized!services!to!lumber!companies!and!wholesalers!for!the!treatment!of!consumer!
lumber!products!for!outdoor!applications.!The!Comp any's!common!shares!are!listed!on!the!
Toronto!Stock!Exchange.!
!
Visit!our!w ebsite:!www.stella-jones.com!
!
Except!for!historical!information !provided!herein,!this!press!release!may!contain!
information!and!statements!of!a!forward-looking!nature!concerning!the!future!
performance!of!the!Company.!These!statements!are!based!on!supposit ions!and!
uncertainties!as!well!as!on!management's!best!po ssible!evaluation!of!future!events.!Such!
factors!may!include,!without!excluding!other!considerations,!fluctuations!in!quarterly!
results,!evolution!in!custom er!demand!for!the!Company's!products!and!services,!the!impact!
of!price!pressures!exerted!by!competitors,!and!general!market!trends!or!economic!changes.!
As!a!result,!readers!are!advised!that!actual!results!may!differ!from!expected!results.!
CONTACT+INFORMATION+
• Stella-Jones!Inc.!
George!T.!Labelle,!C.A.!
Senior!Vice-President!and!Chief!Financial!Officer!
(514)!934-8665!
glabelle@stella-jones.com!