GENSTAR CAPITAL ACQUIRES PANOLAM INDUSTRIES
Panolam looks forward to continued growth, innovation

SHELTON, CT October 1, 2005 -- Panolam Industries International Inc. has announced that an investment group, including Genstar Capital, LLC (based in San Francisco, CA), The Sterling Group, L.P. (based in Houston TX) and management have entered into a definitive agreement to acquire its business from the Carlyle Group. Genstar Capital was the primary investment group that owned Panolam Industries from 1996-1999 when they sold their shares to the Carlyle Group.

Panolam Industries designs and manufactures decorative laminate panels for commercial and residential uses, such as cabinets, display cases, restaurant and office furniture. The transaction is expected to close in the fall.

Since its inception nearly 60 years ago, Panolam Industries has grown dramatically from a small shop in Cornwall, Ontario to a market leader and design innovator, employing more than 900 people in five manufacturing facilities and three distribution centers across North America. According to Panolam Industries' CEO Robert J. Muller, "This investment by Genstar Capital is an endorsement of Panolam's strategy, focused on growth and innovation, and unparalleled customer service.

Darren J. Gold, Principal of Genstar Capital, said, "Panolam is a well-managed company with excellent opportunities for continued growth and expansion. We look forward to working closely with Bob and his team to build value and to continue the firm's upward rise."

Panolam Industries recently announced a major $20 million expansion of its industrial laminates plant in Morristown, Tennessee. Two months ago the company launched a unique, versatile line of commercial wall panels, marketed as FRL(TM)(Fiber Reinforced Laminate), "A Wall You Can Walk On."

About Panolam Industries
Panolam Industries (www.panolam.com), maker of Panolam brand ThermoFused Melamine (TFM), Fiber Reinforced Laminate (FRL), Conolite¨ aircraft laminates and Pionite brand standard and custom High-Pressure Laminates (HPL), is a leader and innovator in the surfacing industry. The company markets its products worldwide to a growing number of architects, designers and fabricators for commercial and residential interiors, store fixtures, and furniture. The company's Panolam and Pionite brands are known for their commitment to supplying only the highest quality materials while providing one of the best selections the industry has to offer.

Contact:
David Bell
Panolam Industries
203-925-1556
david_bell@panolam.com