<B>CanFibre Reopens MDF Plant</B>

The CanFibre Group Ltd. reports that, after a 14-day shutdown to make adjustments to its press and to allow a reduction in inventory, the Riverside medium density fiberboard facility has successfully re-commenced production of its Allgreen Medium Density Fiberboard.

The facility will now be operated to meet all sales orders but will not build further inventory at this time.

CanFibre continues to experience a cash shortage with losses incurred from operations before interest, taxes and depreciation. A consultant has been engaged to assist CanFibre to develop and attempt to implement a restructuring plan for repayment of its creditors.

CanFibre will require additional investment in the facility to achieve this and such investment continues to be sought. CanFibre has not planned to receive any additional investment from its parent company, Kafus Industries Ltd. and, accordingly, CanFibre is not adversely affected by any recent announcements by Kafus.