Kafus AllGreen MDF Certified as Responsible Forest Product

Los Angeles - February 24, 2000 - The CanFibre Group Ltd. (CDN: CFGL), an 85.5% owned subsidiary of Kafus Industries Ltd. (AMEX: KS), is pleased to announce that its new AllGreen™ medium density fiberboard (MDF) panel product has been judged by the Forest Stewardship Council-U.S. (FSC) as compatible with the FSC's program for responsible forest products.

Because CanFibre produces AllGreen™ MDF from 100% recycled wood waste without the use of formaldehyde emitting resins, it qualifies as a "neutral" core material under the FSC's guidelines. Manufacturers who want to produce veneer panel products with wood certified under the FSC program may use FSC endorsed veneer and AllGreen™ MDF in order to produce a finished product that carries the FSC's logo.

Hank Cauley, Executive Director of the Forest Stewardship Council-U.S., remarked on the occasion of the CanFibre announcement, "The FSC applauds CanFibre for its development of this responsible MDF product, and we are pleased that AllGreen™ complies with our program's expectations for neutral core materials. CanFibre's product is a model of environmental stewardship for industry to follow: its use of entirely recycled and reclaimed wood reduces harvesting pressure on forests while simultaneously reducing tonnage placed in landfills. Its status as a neutral core in our program will make the mainstream manufacturing of panel products that use FSC endorsed veneer a certainty. This is an important step forward for advancing the cause of responsible forestry."

David Saltman, Vice President for Marketing and New Product Development at Kafus, replied, "CanFibre is committed to being a leader in this growing movement toward responsible industrial products. We are especially honored to know that our AllGreen™ can play a part in promoting FSC's global mandate to assure responsible forestry."

The Forest Stewardship Council sets standards for well-managed forests worldwide. Founded in 1993, the FSC is an independent, non-profit international organization. Its goal is to encourage better forest management that balances environmental, economic, and social interests. The U.S. Initiative is part of the global FSC program, with National Initiatives in 40 countries.

CanFibre's AllGreen™ MDF represents a major revolution in the panelboard industry. For the first time ever, the industry can now acquire MDF having the market advantage of being "green" combined with the premium characteristics of moisture resistance and zero incremental formaldehyde emissions. AllGreen™ MDF is also available as AllGreen™ MR, a speciality board offering the best moisture resistance in the industry and as AllGreen™ FR which offers UL certified Class I rated fire retardant properties.

Kafus is rapidly becoming a world leader in the production of superior materials made from sustainable and recoverable resources. Kafus' current projects include: the world's first medium density fiberboard plants able to use 100% recovered urban waste wood; the production of natural fiber composites to replace fiberglass and other non-recyclable materials; the production of tree-free newsprint and other paper products; the manufacturing of a fiber cement alternative to wood and metal siding; and developing the conversion of animal waste into organic fertilizer.

Kafus' management is creating a major international presence by changing the status quo of commodity production. Instead of depleting natural resources, Kafus is manufacturing superior commodities from sustainable agricultural and recycled materials. Kafus transforms significant environmental problems into practical economic solutions for the long-term benefit of their customers and the planet at large.

Kafus Industries is a sustainable solutions provider to global industries through the use of advanced technology and renewable

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The foregoing contains forward-looking statements, which are subject to a number of contingencies and uncertainties. Such forward-looking statements are not guarantees of future performance, and are based on numerous assumptions about future conditions that could change. Kafus is subject to a number of risks, which are set forth in its filings with the Securities Exchange Commission.

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