Ainsworth Reports Financial Results for the First Quarter of 2008

Ainsworth Lumber Co. Ltd. (TSX: ANS) -

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Unaudited
(Millions of Canadian dollars, except shares and         Three months ended
 per share data, in accordance with Canadian GAAP)                 March 31
                                                      --------------------
                                                         2008         2007
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Sales                                                 $  88.5  $     135.0
Operating loss                                          (38.0)       (30.8)
Foreign exchange (loss) gain on long-term debt          (36.1)         9.4
Net loss                                                (88.2)       (22.8)
Basic loss per share                                    (6.02)       (1.55)
Adjusted EBITDA (1)                                     (27.6)       (12.4)
Cash used in operating activities                       (40.5)       (49.1)
Number of common shares outstanding (millions)           14.6         14.6
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(1) Adjusted EBITDA, a non-GAAP financial measure, is defined as net loss
    before amortization, (gain) loss on disposal of capital assets, finance
    expense, realized currency translation adjustments, foreign exchange
    (gain) loss on long-term debt, other foreign exchange (gain) loss,
    income tax recovery and other non-recurring items.

Ainsworth Lumber Co. Ltd. today reported its financial results for the quarter ended March 31, 2008.

Net loss for the quarter was $88.2 million on sales of $88.5 million compared to net loss of $22.8 million on sales of $135.0 million in 2007. The decrease in sales is primarily the result of low OSB sales prices and the strong Canadian dollar, in combination with reduced shipment volumes due to production curtailments. The increased net loss is attributable mainly to lower production margins, a $36.1 million unrealized foreign exchange loss on long-term debt, reductions in tax recoveries, and additional financing transaction costs in the first quarter of 2008.

Cash used in operations for the quarter was $40.5 million compared to $49.1 million in the first quarter of 2007. An improvement in cash generated by working capital was partially offset by an increase in operating losses. Cash generated by working capital in the first quarter of 2008 was $4.4 million compared to $14.5 million in cash used in working capital build up in the first quarter of 2007. This change was primarily due to reduced log purchasing activities and log inventory write-downs.

OSB business conditions continue to be challenging, as the U.S. housing industry, a key driver of OSB demand, remains in a protracted downturn. U.S. housing starts continued to drop due to excess housing inventories and the constriction of credit availability in light of the mortgage credit market crisis.

The average of the market prices reported by Random Lengths during the first quarter of 2008 was U.S.$137 per msf (North Central region, on a 7/16th-inch basis) compared to U.S.$145 per msf in the first quarter of 2007.

OSB shipment volumes of 409,752 msf in the first quarter of 2008 were 24% lower than in the same period of 2007 as a result of reduced customer demand and additional plant closures. Production at our jointly-owned OSB facility at High Level, Alberta was indefinitely curtailed as of December 20, 2007 and the mill remained closed throughout the first quarter of 2008. Our Cook, Minnesota facility began an indefinite production curtailment on January 16, 2008. Our Grande Prairie, Alberta and 100 Mile, British Columbia OSB facilities took temporary shutdowns totaling 38 days and 14.5 days of production time, respectively, during the first quarter of 2008. In addition, production at our Grand Rapids, Minnesota facility was indefinitely curtailed in the first quarter of both 2008 and 2007.

Due to the protracted downturn in OSB demand as a result of weak U.S. housing markets and the significant appreciation of the Canadian dollar against the U.S. dollar, we continued to experience negative operating margins and net cash outflows. As a result, our ability to continue as a going concern will be dependent upon the continuing support of our creditors and suppliers, obtaining additional financing or refinancing our capital structure and, ultimately, achieving profitable operations. We are exploring strategic alternatives to strengthen our balance sheet and enhance our liquidity.

Excerpts from the company's interim financial statements for the three month period ended March 31, 2008 are attached. To view the complete interim financial statements, including the notes to the interim financial statements, click on the following link: http://media3.marketwire.com/docs/ans0514.pdf .

Forward-looking statements in this news release relating to strategic alternatives and projected liquidity and to the Company's expectations regarding OSB demand and pricing are made pursuant to the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and National Instrument 51-102 promulgated by the Canadian Securities Administrators. When used herein, words such as "expect" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions made by and information available to Ainsworth Lumber Co. Ltd. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements include, without limitation, the future demand for, and sales volumes of, the Company's products, future production volumes, efficiencies and operating cots, increases or decreases in the prices of the Company's products, the Company's future stability and growth prospects, the Company's future profitability and capital needs, including capital expenditures, and the outlook for and other future developments in the Company's affairs or in the industries in which the Company participates and factors detailed from time to time in the Company's periodic reports filed with the United States Securities and Exchange Commission, and other regulatory authorities. The Company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.