Ainsworth Lumber Announces Closing of Private Placement.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 3, 2004

Ainsworth Lumber Co. Ltd. ("Ainsworth")(TSX: ANS) announced today the closing of the private placement of US$210 million aggregate principal amount of 6.750% Senior Notes due March 15, 2014 (the "Senior Notes"). As previously announced, the net proceeds of the offering of the Senior Notes, together with cash on hand, are being used to pay the consideration under the tender offers and consent solicitations, initiated on February 17, 2004, pertaining to Ainsworth's existing 13.875% Senior Secured Notes due July 15, 2007 (the "13.875% Notes"), and its existing 12 1/2% Senior Secured Notes due July 15, 2007 (the "12 1/2% Notes", and together with the 13.875% Notes, the "Secured Notes"). The purchase of Secured Notes under the tender offers was conditional on the completion of the sale of the Senior Notes.

This press release is not an offer of securities for sale in the United States. The Senior Notes have not been registered under the United States Securities Act of 1933 or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About Ainsworth

Ainsworth Lumber Co. Ltd. has operated as a forest products company in Western Canada for over 50 years. The company's facilities have a total annual capacity of approximately 1.5 billion square feet - 3/8" of oriented strand board (OSB), 155 million square feet - 3/8" of specialty overlaid plywood, and 55 million board feet of lumber. In Alberta, the company's operations include an OSB plant at Grande Prairie and a one-half interest in an OSB plant at High Level. In B.C., the company's facilities include an OSB plant at 100 Mile House, a veneer plant at Lillooet, a plywood plant at Savona and finger-joined lumber plant at Abbotsford.