Ainsworth Lumber Co. Ltd.
TSX : ANS

Ainsworth Lumber Co. Ltd.

October 05, 2005 18:49 ET

Ainsworth Initiates Claim Against Potlatch Corporation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 5, 2005) - Ainsworth Lumber Co. Ltd. ("Ainsworth") (TSX:ANS) announced that, pursuant to the Purchase Agreement dated August 25, 2004 between Ainsworth and Potlatch Corporation ("Potlatch"), it has filed a notice of claim with Potlatch for reimbursement of repair and related costs at the three OSB mills purchased from Potlatch in Minnesota. The basis of Ainsworth's claim is that certain of the equipment and buildings were not in the condition and state of repair warranted by Potlatch. Ainsworth is claiming an amount in excess of the US $60 million cap on the indemnity provided for in the Purchase Agreement. Potlatch has 30 days to complete an investigation of the claim.

Ainsworth spokesperson, Robert Allen, said: "The claim is complex and the Company is currently assessing its financial and accounting impacts."

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