RISI's Wood Biomass Market Report Details New Draft Rules for Biomass Crop Assistance Program (BCAP)

BOSTON, February 8 - The Wood Biomass Market Report today commented that new "draft" rules
announced by the Farm Services Agency for the Biomass Crop Assistance Program
(BCAP) come closer to providing assurances that wood for higher-value
products will not be diverted for use as biomass. The Report, published
monthly by RISI, the leading information provider for the global forest
products industry, has reported since the program's inception last year on
the concern among traditional forest products players that BCAP would drive
up prices for composite panel furnish, OSB raw material, pulpwood and even
some low-grade sawlogs.

(Logo: www.newscom.com/cgi-bin/prnh/20080521/NEW122LOGO )

The Report also stated that payments made through the BCAP program are
just now flowing to the market in earnest from a US$517 million allocation
that is good through March 31, 2010. While these payments do not appear to
have had adverse effects to date on pulp and panel producers, this is due
almost solely to market conditions and should not be a signal as to the true
effect the BCAP program could have if new rules are not enacted.

William Perritt, Executive Editor of the Wood Biomass Market Report,
said, "It appears the FSA is finding a deeper understanding of the possibly
damaging cross-currents BCAP may have in wood markets. The recent draft rule
at least makes an attempt to establish a wall between true wood biomass and
the fiber sources more suited to higher and better use at both wood-based
panel and pulp mills."

The Wood Biomass Market Report is published monthly. Yearly subscriptions
are available now for US$597 — to order or for more information, please
visit www.risi.com/woodbiomass.

RISI has also recently published a study on wood biomass policies in the
United States and Europe entitled 2010 Wood Biomass Policy Review. For more
information or to order this study, please visit
www.risi.com/biomasspolicy.

About RISI

RISI is the leading information provider for the global forest products
industry. The company works with clients in the pulp and paper, wood
products, timber, tissue, nonwovens, printing and publishing industries to
help them make better decisions.

Headquartered in Boston (Bedford), Massachusetts, RISI operates offices
in Brussels, Belgium; Atlanta, Georgia; San Francisco, California; Portland,
Oregon; Sao Paulo, Brazil; Shanghai, China; Singapore; and Charlottesville,
Virginia. More information can be found at www.risi.com.

    Contact:
    Dan Blenk
    Director of Marketing
    Wood & Timber Information
    RISI
    4 Alfred Circle, Bedford MA 01730 U.S.A.
    Tel: +1-781-734-8942
    Email: dblenk@risi.com

Dan Blenk, Director of Marketing, Wood & Timber Information, RISI, +1-781-734-8942, dblenk at risi.com