Acadian Timber Income Fund converts to a Corporation

Acadian Timber Corp. has announced the completion of the conversion of Acadian Timber Income Fund to a corporation named Acadian Timber Corp., pursuant to a plan of arrangement under the Canada Business Corporation Act.

Effective on the closing of the Arrangement and related transactions, the Corporation now directly owns subsidiaries which own and operate the businesses which were held and operated by the Fund and its subsidiaries prior to the closing of the Arrangement. The management and trustees of the Fund are now the management and directors of the Corporation.

Pursuant to the Arrangement with CellFor Inc., unitholders of the Fund received one common share of the Corporation for each unit held on the effective date. In addition, CellFor security holders, indirectly through a newly created entity, received 159,763 shares representing a $1.0 million retained equity interest in the Corporation. The Corporation now has 16,731,216 shares issued and outstanding.

Trading of the shares of Acadian is expected to commence on or about January 4th, 2010 on the Toronto Stock Exchange under the symbol "ADN".

Acadian Timber Corp. is a leading supplier of primary forest products in Eastern Canada and the Northeastern U.S. With a total of 2.4 million acres of land under management, Acadian is the second largest timberland operator in New Brunswick and Maine.

Acadian owns and manages approximately 1.1 million acres of freehold timberlands in New Brunswick and Maine, and provides management services relating to approximately 1.3 million acres of Crown licensed timberlands. Acadian also owns and operates a forest nursery in Second Falls, New Brunswick. Acadian's products include softwood and hardwood sawlogs, pulpwood and biomass by-products, sold to over 110 regional customers.

Acadian's shares are listed for trading on the Toronto Stock Exchange under the symbol ADN.

For further information, please visit our website at www.acadiantimber.com.