ARAUCO, a global leader in the manufacture of sustainable forest products, has signed an agreement to purchase Flakeboard, a leading manufacturer of panel products in the North American market, with seven production facilities throughout the United States and Canada producing MDF, particleboard and thermally fused melamine panels.

"This acquisition further highlights ARAUCO's intent to grow our Composite Panel business and solidifies our commitment to be a leading supplier of sustainable, high-quality forest products to the North American market," said Francisco Figueroa, ARAUCO-USA General Manager.  "We are very excited about the prospects ahead as we blend the talents and technology of ARAUCO-USA and Flakeboard.  Our focus will continue to be on delivering industry-leading products to our customers."

In January 2012, ARAUCO also acquired an MDF and particleboard facility located in Moncure, North Carolina, which will be combined with Flakeboard's existing mills and operate under the Flakeboard name. Mr. Kelly Shotbolt, President and CEO of Flakeboard, and his Senior Management Team will combine and lead this company.

ARAUCO and Flakeboard are targeting a closing date during the second half of this year.

About ARAUCO

ARAUCO is a global leader in sustainable forest management and the production of sustainable forest products, including AraucoPly® plywood, TruChoice® Arauco millwork and moulding, TruPan MDF and HDF panels, thermally fused melamine panels, particleboard, lumber and pulp. The wood and wood fiber used in ARAUCO products comes from responsibly managed sources in Chile, Brazil, Argentina, Uruguay and the United States.  ARAUCO is headquartered in Santiago, Chile.  ARAUCO's North American headquarters is located at 5901B Peachtree Dunwoody Rd. NE, Suite 500, Atlanta, GA 30328.  Phone:  770.350.1610