Ainsworth Lumber Co. Ltd.

Ainsworth Lumber Co. Ltd.

December 20, 2010 15:05 ET

Ainsworth Enters Into an Agreement to Acquire the Remaining 50% Interest of Footner OSB Mill in High Level, Alberta

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2010) - Ainsworth Lumber Co. Ltd. (TSX:ANS)(TSX:ANS.WT) announced today that it has entered into an agreement with Grant Forest Products Inc. to indirectly acquire the remaining 50% interest in Footner Forest Products Inc. ("Footner") and its oriented strand board ("OSB") facility in High Level, Alberta for CDN $20 million. If completed, the transaction will result in Ainsworth owning 100% of Footner.

The transaction is subject to a number of conditions, including approval by the Court in respect of Grant Forest Products' proceedings under the Companies' Creditors Arrangement Act (CCAA). The transaction is expected to close in the first quarter of 2011.

Forward Looking Statements

Forward-looking information provided in this news release relating to the Company's proposed acquisition and the Company's future prospects are forward-looking information pursuant to National Instrument 51-102 promulgated by the Canadian Securities Administrators. The Company believes that expectations reflected in such information are reasonable, but no assurance is given that such expectations will be correct. Forward-looking information is based on the Company's beliefs and assumptions based on information available at the time the assumption was made and on management's experience and perception of historical trends, current conditions and expected further developments as well as other factors deemed appropriate in the circumstances. Investors are cautioned that there are risks and uncertainties related to such forward-looking information and actual results may vary. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking information include, without limitation, factors detailed from time to time in the Company's periodic reports filed with the Canadian Securities Administrators and other regulatory authorities. The forward-looking information is made as of the date of this news release and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as explicitly required by securities laws.

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