China Establishes First Green Carbon Foundation; Sino-Forest Participates in Development of Forest-derived Biofuels

2007



TORONTO, July 23 /PRNewswire-FirstCall/ - In an effort to mitigate
greenhouse emissions while encouraging development of the carbon credit
trading and forest biofuel, the State Forestry Administration officially
launched the China Green Carbon Foundation on July 20, 2007 at the Great
Hall of the People in Beijing, PRC.
As one of the founding members and the only member representing the
forestry sector, Sino-Forest (TSX: TRE and TRE.S) is pleased to work with
the State Forestry Administration to develop carbon credits and renewable
energy through large-scale tree plantation, management of forests in a
sustainable manner to increase absorption of carbon dioxide, and promoting
and facilitating carbon credit trading in China.
"This is a first for China and an important milestone as it plans to
develop carbon credit trading and efforts to mitigate greenhouse emissions
through the development of environmentally friendly and sustainable
initiatives. We are excited to be able to cooperate and contribute our
expertise towards the integration of forest resources and biofuel
development," said Allen Chan, Chairman and Chief Executive Officer.
To address climate change and efforts to mitigate greenhouse emissions,
China launched its "National Climate Change Program" on June 4, 2007, a
first by a developing country, to promote clean technologies and improve
energy efficiencies. The plan is designated to integrate with the country's
11th Five-year plan (2006-2010). China pledges to reduce carbon dioxide
emissions or equivalent by 1.5 billion tonnes by 2010 while maintaining its
economic growth.

About Sino-Forest Corporation
Sino-Forest Corporation, a Canadian company, is a leading commercial
forestry plantations operator in China. The company started its operations
in 1994 and is the first foreign and privately managed operator involved in
forest products in China. Its principal businesses include the ownership
and management of forestry plantation trees and sales of standing timber,
wood chips and logs, and complementary manufacturing of downstream
engineered-wood products. The Corporation's common shares trade on the
Toronto Stock Exchange under the symbol TRE since 1995.
Please note: This press release contains projections and
forward-looking statements regarding future events. Such forward-looking
statements are not guarantees of future performance of the Company and are
subject to risks and uncertainties that could cause actual results and
company plans and objectives to differ materially from those expressed in
the forward-looking statements. Such risks and uncertainties include, but
not limited to, changes in China and international economies; changes in
currency exchange rates; changes in worldwide demand for the Company's
products; changes in worldwide production and production capacity in the
forest products industry; competitive pricing pressures for the Company's
products and changes in wood and timber costs.




SOURCE Sino-Forest Corporation