SJ Stella Jones Inc

Stella-Jones Inc. (TSX:SJ) today announced that it has signed a non-binding
letter of intent to acquire Thompson Industries, Inc. ("Thompson"), a provider
of treated wood products to the railroad industry. 


The letter of intent contemplates a total purchase price of approximately
US$41.0 million. The transaction, if finalized, is expected to close in December
2011 and is subject to customary closing conditions, including entry into a
definitive purchase agreement and satisfactory due diligence. Stella-Jones plans
to finance the acquisition through existing credit facilities. 


Founded in 1981, Thompson produces treated wood products, mainly railway ties
and timbers, at a facility located in Russellville, Arkansas. Thompson's sales
for its fiscal year ended September 30, 2011 are expected to reach approximately
US$49.0 million. 


"The acquisition of Thompson Industries would further enhance Stella-Jones'
product and service offering to the North American railroad industry," said
Brian McManus, President and Chief Executive Officer of Stella-Jones. "Thompson
enjoys solid business relationships and is well recognized for its high-quality
operations." 


ABOUT STELLA-JONES 

Stella-Jones Inc. (TSX:SJ) is a leading producer and marketer of pressure
treated wood products. The Company supplies North America's railroad operators
with railway ties, timbers and recycling services; and the continent's
electrical utilities and telecommunications companies with utility poles.
Stella-Jones also provides industrial products and services for construction and
marine applications, as well as residential lumber to retailers and wholesalers
for outdoor applications. 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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