Ainsworth Initiates Claim Against Presss Manufacturers


Vancouver, British Columbia, Canda, 20 July 2006 -- Ainsworth Lumber Co. Ltd. has filed a complaint against Forest Product Technologies, Inc. (FPT), Advance Manufacturing Corporation, and Barberton Steel Industries, Inc., claiming defective machinery was recently installed in its OSB mill in Grand Rapids, Minnesota.

The basis of Ainsworth's claim is that FPT, Advance, and Barberton designed, engineered, manufactured, and sold defective press components to Ainsworth, at a cost to Ainsworth in excess of USD 4.0 million. The defective machinery has caused Ainsworth a 26-day delay in plant operation and the company has incurred re-engineering and repair costs as a result of the defective press components. Although the mill has recommenced operations, the repairs are temporary and Ainsworth will be required to replace all of the defective components, causing further expense and downtime at the mill. Ainsworth has requested that damages be awarded by the Court at trial.