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LP Announces Indefinite Shutdown at St-Michel-des-Saints, Quebec OSB and Sawmill Facilities
Nashville, Tennessee, USA, 08 August 2006 --(BUSINESS WIRE)-- Louisiana-Pacific Corporation (LP) (NYSE: LPX) today announced that it will shut down operations at its St-Michel-des-Saints, Quebec, Canada, oriented strand board (OSB) mill for an indefinite period, effective immediately.

"This shutdown is a difficult, but necessary economic decision," said LP's executive vice president of OSB, Jeff Wagner. "LP's St-Michel-des-Saints OSB mill is losing money due to an unfortunate combination of factors: high wood costs, high transportation costs, unprecedented increases in fuel prices, and the strong Canadian dollar. These costs, combined with the recent steep decline in OSB prices, made this decision necessary."

The OSB mill has an annual production capacity of 500 million square feet and employs 218 people. St-Michel-des-Saints OSB customers will be served by LP's other two Quebec mills in Chambord and Maniwaki during the shutdown.

LP's adjacent St-Michel-des-Saints sawmill, which shares wood resources and energy with the OSB mill and employs 104 people, will also be shut down for an indefinite period, effective immediately. The sawmill, whose operations are tied to operation of the OSB mill, has not been profitable for several months.

Wagner continued, "We regret the hardship these curtailments cause employees, vendors, and the community. We have excellent, skilled employees at these mills. Unfortunately, we cannot operate the mills under current conditions. We will continue to monitor the economic situation and try to change the factors affecting the current high cost of operations. We will explore every opportunity to reduce costs and to return the mills to a competitive position. Though at this time we do not know when mill operations will resume, we have committed to provide an update to our employees and the community within 60 days as we continue to evaluate our situation at St-Michel-des-Saints."

LP, headquartered in Nashville, Tennessee, is a supplier of building products, manufacturing 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.


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