LP to Convert Hayward, Wisc., Mill to SmartSide Production; Announces Plans for New, State-of-the-Art OSB Mill in Alabama.

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--May 3, 2004

In a move designed to lower the costs and enhance the availability of two highly sought after products, Louisiana-Pacific Corporation's (LP) (NYSE:LPX) Board of Directors approved a strategic plan that will convert LP's Hayward, Wisc., commodity oriented strand board (OSB) mill to make SmartSide(R) siding products and replace this capacity with a new, state-of-the-art, low-cost OSB mill in Alabama.

The Hayward mill's siding production is needed to support the rapidly growing demand from national builders, retailers and remodelers for the SmartSide family of products. Hayward, the long-time flagship of LP's OSB business with more than 500 million square feet of capacity, will propel the siding business to new levels by leveraging the capabilities of the highly trained personnel at Hayward and through the flexibility of its two lines. The conversion will occur over the next several years as demand for the siding products increases. Meanwhile, the mill will also produce regular OSB.

"The success of our siding business requires us to increase capacity as the market for our attractive SmartSide siding, soffit and trim products continues to expand," said Joe Kastelic, executive vice president, sales and specialty products. "When complete, this facility will increase our siding capacity by 50% and comes on the heels of a similar conversion at our Silsbee, Texas mill, and a major expansion at our Tomahawk, Wisc., mill."

The strategic plan includes endorsement to begin the planning, engineering and negotiations for a new, state-of-the-art, commodity OSB mill in Alabama to offset the loss of OSB capacity resulting from the conversion of the Silsbee and Hayward mills. Current OSB production rates have been stretched in an effort to satisfy customer demand. LP intends to meet the market's need for more product with this new production. As the market leader in OSB, LP will employ its manufacturing expertise and the latest technology in building the new mill to achieve benchmark efficiencies and productivity. It will resemble the scope and capabilities of the LP and Canfor joint venture OSB mill being built in Fort St. John, British Columbia, and will have one of the lowest delivered costs in North America. Construction is expected to begin in late 2005 with start up in 2007.

LP is a premier supplier of building materials, delivering innovative, high-quality commodity and specialty products to its retail, wholesale, homebuilding and industrial customers. Visit LP's web site at www.lpcorp.com for additional information on the company.

FORWARD LOOKING STATEMENTS

This news release contains statements concerning Louisiana-Pacific Corporation's (LP) future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters address in these statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those contemplated by these, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts, market demand for the company's products, and prices for structural products; the effect of forestry, land use, environmental and other governmental regulations; the ability to obtain regulatory approvals, and the risk of losses from fires, floods and other natural disasters. These and other factors that could cause or contribute to actual results differing materially from those contemplated by such forward-looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.