Louisiana-Pacific Corporation Initiates its Capital Lumber Investment Strategy; Extensive Upgrades to Idaho Facilities Planned as 'First Step'

Business Wire, July 1, 1999

PORTLAND, Ore.--(BUSINESS WIRE)--July 1, 1999--

In line with a previously announced capital investment strategy to expand and upgrade key lumber facilities in North America, Louisiana-Pacific Corporation (NYSE:LPX) has taken the first steps in launching a multi-million dollar modernization of its Chilco sawmill and Sandpoint finishing plant in Northern Idaho.

The Chilco and Sandpoint modernizations are part of a corporate-wide initiative intended to significantly increase production capacity through operational efficiencies. The strategy calls for the modernization of fourteen strategically located facilities over a multi-year time period. The company expects the program to result in an increase of lumber production capacity by approximately 460-million board feet and a 25 percent to 30 percent reduction in operational costs over the next three to five years.

"Reinvesting in the Chilco and Sandpoint facilities will significantly strengthen L-P's competitive position by expanding production capabilities and enabling the company to offer customers higher quality products," said Keith Matheney, L-P Vice President for Core Businesses. "Modernizations planned in Northern Idaho are expected to significantly enhance the quality of lumber produced, while making better utilization of available timber."

Louisiana-Pacific, now in its 26th year of operation, is a major building products company headquartered in Portland, Oregon with manufacturing facilities throughout the United States and in Canada and Ireland. Visit L-P's website at www.LPCorp.com.

FORWARD LOOKING STATEMENTS

Some statements in this release may constitute forward-looking statements within the meaning of federal securities laws. Forward-looking statements include, without limitation, statements regarding the outlook for future operations, forecasts of future costs and expenditures, the outcome of legal proceedings, plans for product development and new facilities, evaluation of market conditions, and the adequacy of reserves. Investors are cautioned that forward-looking statements are subject to an inherent risk that actual results may vary materially from those described herein. Factors that may result in such variance, in addition to those set forth above, include changes in interest rates, commodity prices, and other economic conditions; actions by competitors; changing weather conditions and other natural phenomena; actions by government authorities; uncertainties associated with legal proceedings; technological developments; risks associated with acquiring new businesses; future decisions by management in response to changing conditions; and invalidity of the beliefs and assumptions underlying such forward-looking statements.