SJ Stella Jones Inc

NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES OR FOR DISTRIBUTION INTO THE UNITED
STATES 


Stella-Jones Inc. (or "the Company") (TSX:SJ) today announced that it has
completed the acquisition of Tangent Rail Corporation ("Tangent"), a provider of
wood crosstie supply chain services to the railroad industry. This acquisition
expands Stella-Jones' capabilities within the U.S. railway tie market and
provides the Company with coal tar distillation operations. Stella-Jones' North
American wood treating infrastructure now consists of 19 facilities, 11 of which
are located in the United States.


Tangent serves the railroad industry with treated wood products, mainly railway
ties, through facilities located in Warrior, Alabama; Terre Haute and Winslow,
Indiana; Alexandria, Louisiana and McAlisterville, Pennsylvania. The wood
preservative, creosote, is produced at its distilleries in Terre Haute, Indiana
and Memphis, Tennessee. Lifecycle solutions, consisting of tie pickup and tie
disposal, are carried out at three facilities in Alabama, Minnesota and North
Carolina. 


For the year ended December 31, 2009, Tangent generated sales of approximately
US$178.0 million and earnings before interest, taxes, depreciation and
amortization ("EBITDA") of approximately US$28.0 million. The purchase price
totalled approximately US$165.0 million, subject to post closing adjustments. 


Financing for the transaction has been secured through an $80,050,000 private
placement of subscription receipts, which successfully closed on March 15, 2010,
as well as through the issuance to the Solidarity Fund QFL of a US$25,000,000
unsecured debenture, the increase of existing operating debt facilities and the
addition of a US$40,000,000 term facility which successfully closed on March 24,
2010. The subscription receipts will be exchanged as at the close of business
today, April 1, 2010, for common shares in the share capital of the Company on
the basis of one common share per subscription receipt. Holders of subscription
receipts do not need to take any action in order to receive the common shares to
which they are entitled. As the subscription receipts were sold on a private
placement basis, these common shares will be subject to regulatory restrictions
on resale until July 16, 2010.


"Tangent has built a reputation for excellence on the basis of a corporate
culture that mirrors our own," said Brian McManus, President and Chief Executive
Officer of Stella-Jones. "This strategic acquisition solidifies our position as
the second largest North American railway tie provider and takes Stella-Jones to
a still higher level of product offerings and services. We expect the
transaction to yield appreciable synergies and to be immediately accretive to
earnings." 


This press release is not an offer to sell, or a solicitation of an offer to
buy, any securities. The securities referred to in this press release have not
been and will not be registered under the U.S. Securities Act of 1933, as
amended and may not be offered or sold in the United States except pursuant to
an exemption from, or in a transaction not subject to, the registration
requirements of the U.S. Securities Act of 1933.


NON-GAAP MEASURE

Earnings before interest, taxes, depreciation and amortization ("EBITDA") is a
financial measure not prescribed by Canadian generally accepted accounting
principles ("GAAP") and is not likely to be comparable to similar measures
presented by other issuers. Management considers it to be useful information to
assist knowledgeable investors in evaluating the cash generating capabilities of
the Company.


ABOUT STELLA-JONES 

Stella-Jones Inc. (TSX:SJ) is a leading North American producer and marketer of
industrial pressure treated wood products, specializing in the production of
railway ties and timbers as well as wood poles supplied to electrical utilities
and telecommunications companies. The Company also provides treated consumer
lumber products and customized services to lumber retailers and wholesalers for
outdoor applications. Other products include marine and foundation pilings,
construction timbers, highway guardrail posts and treated wood for bridges. The
Company's common shares are listed on the Toronto Stock Exchange. 


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 suppositions
and uncertainties as well as on management's best possible evaluation of future
events. Such factors may include, without excluding other considerations,
fluctuations in quarterly results, evolution in customer demand for the
Company's products and services, the impact of price pressures exerted by
competitors, the ability of the Company to raise the capital required for
acquisitions, and general market trends or economic changes. As a result,
readers are advised that actual results may differ from expected results.

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