Portland, OR, May 6, 2005 - - Columbia Forest Products today announced it has begun the conversion of all its veneer-core hardwood plywood plants to formaldehyde-free manufacturing processes, using a patented, soy-based adhesive cooperatively developed by Columbia, the College of Forestry at Oregon State University, and Hercules Incorporated.

Hercules has awarded Columbia a license to utilize its patented adhesive system on an exclusive basis for all of Columbia’s North American decorative panel markets.  The new adhesive, whose makeup is primarily soy flour, will allow Columbia to completely eliminate formaldehyde from its veneer-core and Woodstalk® agrifiber-core panel products.  The company expects the conversion to be complete within one year’s time.

“This new adhesive will provide a cost-competitive solution while increasing moisture resistance without urea formaldehyde,” Columbia Executive Vice President of Sales and Marketing Ed Woods said.  “We’re currently producing it in two of our facilities and plan for a complete rollout in the coming months.”

Urea formaldehyde (UF) is used in the majority of North American and imported hardwood plywood panels and has recently been classified by the International Agency for Research on Cancer (IARC), part of the World Health Organization, as “carcinogenic to humans.”  Currently there are few no-added-formaldehyde (NAF) alternatives to UF-based adhesives on the market, and all are significantly higher in cost.

“This is good news for our employees, our customers and our end users,” Columbia Executive Vice President of Plywood and Veneer Operations Brad Thompson said.  “We’ve been working for several years to develop a resin that would allow us to do away with formaldehyde while achieving a better level of performance, and this is the winning recipe.”

Founded in 1957, Columbia Forest Products is North America’s largest manufacturer of hardwood plywood and hardwood veneer.  The company also markets and produces engineered and solid wood flooring products.  Columbia’s decorative interior veneers and panels are used in high-end cabinetry, fine furniture, architectural millwork, and commercial fixtures.  Employee-owned and based in Portland, Oregon, Columbia employs more than 3,000 and operates facilities in locations throughout the United States and Canada.

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