Ainsworth Lumber Releases 3rd Quarter Earnings.

VANCOUVER, BC--(BUSINESS WIRE)--Nov. 9, 1995--AINSWORTH LUMBER CO. (TSE:ANS) Ainsworth Lumber Co. Ltd. reports net income for the three months ended September 30, 1995 of $4.3 million ($0.29 per share) on sales of $66.6 million. Net earnings during the same three month period in 1994 were $5.2 million ($0.35 per share) on sales of $46.8 million. The 1994 third quarter net earnings figure includes $1.1 million ($0.07 per share) in refunds for U.S. countervailing duties paid by the Company during 1994.

On a year to date basis for the nine months ended September 30, 1995, the Company earned $7.8 million, or $0.54 per share, compared to $18.5 million ($1.27 per share) for the nine months ended September 30, 1994. The 1994 nine month net earnings figure includes $1.1 million ($0.07 per share) in refunds for U.S. countervailing duties paid by the Company during 1994. Sales for the nine month period ended September 30, 1995 were $189.3 million as opposed to $143.5 for the same nine month period in 1994.

The Company's financial results for the third quarter reflect lower lumber prices and higher labour, purchased log and stumpage costs than the prior year's third quarter. Lumber prices during the third quarter were 20 percent lower than those of the comparable three month period in 1994. These lower sales prices and higher costs were offset by additional earnings from the 100 Mile House OSB plant, which commenced commercial production in September 1994.

The Company's third quarter earnings improved over the second quarter as OSB prices strengthened and delivered log costs were reduced. In addition, planned shutdowns during the second quarter of the Clinton sawmill and 100 Mile House OSB plant for capital upgrades and equipment modifications respectively had positive impacts on lumber and OSB production. Third quarter prices for the Company's woodchips increased by 26 percent over the prior quarter, and continue to be strong.

High log costs, which persisted throughout the Company's second quarter, were reduced as winter log inventories were depleted and the periods necessary to gain cutting permit approvals were shortened. Stumpage costs were also reduced during the third quarter due to lower lumber prices realized during the prior period, and further stumpage reductions are in place for the fourth quarter.

Production at the Company's Clinton sawmill, which received an $8 million capital upgrade during the month of May, has surpassed 1994 monthly production rates and the mill is now providing improved lumber recoveries, lower production costs, and a higher value mix of lumber products. The newly installed sawmill equipment is expected to reach its daily rated production capacity by the end of the fourth quarter.

The Company's OSB plant at 100 Mile House, B.C. is operating at 93 percent of rated capacity and the ramp-up to full production is expected early in the first quarter of 1996.

Construction of the Company's second OSB plant near Grande Prairie, Alberta is in its final phase with commissioning of equipment currently underway. Production of the first OSB board is anticipated in early December, 1995. The design production capacity of the Grande Prairie OSB plant is 540 million square feet (3/8 inch basis).

Ainsworth Lumber has operated as an integrated forest products company in British Columbia for more than forty years. In addition to its sawmill and OSB plant at 100 Mile House, Ainsworth operates a sawmill near Clinton, a sawmill and veneer plant at Lillooet, a specialty plywood plant at Savona, and a value-added plant at Abbotsford. Ainsworth's nearly completed facility in Grande Prairie, Alberta, is the Company's first operation outside of British Columbia.

CONTACT: 100 Mile House, B.C.

Kevin Ainsworth

[phone]

or

Vancouver, B.C.

Catherine Ainsworth

[phone]