VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/08/11 -- Ainsworth Lumber Co. Ltd. (TSX: ANS)(TSX: ANS.WT) -

Highlights

--  Recorded positive adjusted EBITDA in third quarter
--  Maintained strong cash position during the quarter
--  Company recorded the best quarter in terms of safety
--  Appointed Jim Lake President & COO upon the retirement of CEO Rick Huff

Ainsworth Lumber Co. Ltd. today reported its financial results for the third quarter of 2011.

Adjusted EBITDA for the third quarter of 2011 was $0.7 million compared to $9.8 million in the same quarter of 2010. EBITDA margin on sales was 1.0% compared to 12.1% in the third quarter of 2010. The decrease was primarily the result of a $9.5 million decrease in gross profit (sales less cost of products sold (exclusive of amortization)) due to a decrease in the Western Canadian pricing for OSB compared with the same quarter in 2010. The Canadian dollar was an average of six cents stronger than the U.S. dollar in the third quarter of 2011 compared to the same period in 2010, which had a negative impact on gross profit. If foreign exchange rates had been consistent with the third quarter of 2010, adjusted EBITDA would have been $2.8 million higher.

Ainsworth President and Chief Operating Officer Jim Lake said, "In the third quarter of 2011 Ainsworth recorded positive EBITDA from continuing operations despite facing considerable market challenges, including an unfavourable foreign exchange position, historically low North American oriented strand board ("OSB") prices, and an expected decline in overseas sales. We achieved this on the strength of ongoing market share gains with our value added product segments and several operational successes."

"Despite the difficult conditions we continue to face, I believe Ainsworth is well positioned to emerge from this period well positioned for growth and continued value creation. The Company recorded the best quarter in its history in terms of safety. I have always held true the belief that people that are conscientious about safety tend to pay close attention to detail in everything they do, and that is now translating into improved operational and financial performance across our organization," added Mr. Lake.

In the third quarter of 2011, the published benchmark price indicator for North Central delivered 7/16" OSB averaged U.S. $184 per msf, a marginal increase from an average quarterly price of U.S. $180 per msf in the third quarter of 2010. The average Western Canadian published price for 7/16" OSB was U.S. $137 per msf in the third quarter of 2011, down from an average price of U.S. $164 msf in the same period of 2010.

Ainsworth recorded a net loss from continuing operations of $58.9 million in the third quarter of 2011 compared to net income of $10.5 million in the third quarter of 2010. This decrease is primarily due to a $60.5 million increase in the unrealized foreign exchange loss on long-term debt and a $9.5 million decrease in gross profit, partially offset by a $5.7 million increase in income tax recovery.

Selected Financial Information
In millions of Canadian dollars, except per share data
(Unaudited)

                               Three months ended         Nine months ended
                                     September 30              September 30
                       ----------------------------------------------------
                                2011         2010         2011         2010
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Sales                         $ 71.8       $ 81.1      $ 223.8      $ 274.5
Cost of products sold           67.1         66.9        201.9        199.7
Net income from continuing
 operations                    (58.9)        10.5          5.9         10.0
Net income (loss)              (59.2)        10.4          5.5          9.0
Adjusted EBITDA                  0.7          9.8          9.8         61.0
Adjusted EBITDA margin           1.0%        12.1%         4.4%        22.2%
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Basic and diluted earnings
 (loss) per share:
  Net income from
   continuing operations       (0.59)        0.10         0.05         0.10
  Net income (loss)            (0.59)        0.10         0.05         0.08
  Weighted average common
   shares outstanding          100.6        100.3        100.6        100.1
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Conference Call Information

Ainsworth will hold a conference call on Wednesday, November 9, 2011 at 10:00 a.m. PST (1:00 p.m. EST) to discuss the 2011 third quarter results. The dial-in phone number is 1-800-319-4610 from inside the U.S. or Canada and 1-604-638-5340 from outside the U.S. or Canada. To access the post-view line, dial 1-800-319-6413, or 1-604-638-9010, Reservation 4176#. This recording will be available until the end of the day on November 16, 2011.

Forward-Looking Statements

Forward-looking information provided in this news release relating to the Company's expectations regarding OSB demand and pricing and the Company's future prospects are forward-looking information pursuant to National Instrument 51-102 promulgated by the Canadian Securities Administrators. The Company believes that expectations reflected in such information are reasonable, but no assurance is given that such expectations will be correct. Forward-looking information is based on the Company's beliefs and assumptions based on information available at the time the assumption was made and on management's experience and perception of historical trends, current conditions and expected further developments as well as other factors deemed appropriate in the circumstances. Investors are cautioned that there are risks and uncertainties related to such forward-looking information and actual results may vary. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking information include, without limitation, factors detailed from time to time in the Company's periodic reports filed with the Canadian Securities Administrators and other regulatory authorities. The forward-looking information is made as of the date of this news release and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as explicitly required by securities laws.

AINSWORTH LUMBER CO. LTD.
Condensed Interim Consolidated Statements of Financial Position
(In thousands of Canadian dollars)
(Unaudited)

                                                  September 30  December 31
                                                          2011         2010
---------------------------------------------------------------------------

ASSETS
Current Assets
  Cash and cash equivalents                           $ 33,706     $ 67,577
  Short-term investments                                50,511       59,413
  Trade and other receivables                           20,851       15,537
  Inventories                                           33,605       39,400
  Prepaid expenses                                       5,074        6,557
---------------------------------------------------------------------------

                                                       143,747      188,484
Property, Plant and Equipment                          644,397      535,192
Intangible Assets                                       19,777       21,439
Other Assets                                             1,972       10,053
Assets Held for Disposal                                     -        7,042
---------------------------------------------------------------------------
                                                     $ 809,893    $ 762,210
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
  Trade and other payables                            $ 29,209     $ 24,833
  Income taxes payable                                   1,441        1,302
  Current portion of long-term debt                      4,994       22,270
  Liabilities related to discontinued operations           786          827
---------------------------------------------------------------------------
                                                        36,430       49,232
Accrued Pension Benefit Liability                       10,445       10,445
Reforestation Obligation                                 2,922        2,076
Long-term Debt                                         530,850      485,625
Deferred Income Tax Liabilities                         35,199       27,208
Liabilities Related to Discontinued Operations           1,729        1,669
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                                                       617,575      576,255
SHAREHOLDERS' EQUITY
Capital Stock                                          411,509      410,950
Contributed Surplus                                      1,727        1,349
Accumulated Other Comprehensive Loss                    (9,414)      (9,414)
Deficit                                               (211,504)    (216,930)
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                                                       192,318      185,955
---------------------------------------------------------------------------
                                                     $ 809,893    $ 762,210
---------------------------------------------------------------------------


AINSWORTH LUMBER CO. LTD.
Condensed Interim Consolidated Statements of Operations and Comprehensive
(Loss) Income
(In thousands of Canadian dollars, except share and per share data)
(Unaudited)

                               Three months ended         Nine months ended
                                     September 30              September 30
                                2011         2010         2011         2010

Sales                       $ 71,806     $ 81,069    $ 223,753    $ 274,512
---------------------------------------------------------------------------

Costs and Expenses
  Costs of products sold      67,062       66,860      201,871      199,669
  Selling and
   administration              4,654        5,012       13,293       15,362
  Amortization of property,
   plant and equipment and
   intangible assets           6,113        5,834       18,097       23,954
---------------------------------------------------------------------------
                              77,829       77,706      233,261      238,985
---------------------------------------------------------------------------

(Loss) Income before Other
 Items                        (6,023)       3,363       (9,508)      35,527

Finance Expense              (12,489)     (13,384)     (36,699)     (39,715)
Foreign Exchange (Loss)
 Gain                        (41,739)      16,756      (27,319)      11,814
(Loss) Gain on Derivative
 Financial Instrument         (7,031)        (335)      (6,227)       5,344
Costs of Curtailed
 Operations                     (872)          35       (2,261)      (1,752)
Gain on Acquisition of High
 Level                             -            -       72,544            -
Other Items                      900        1,468          995        3,375
---------------------------------------------------------------------------
(Loss) Income Before Income
 Taxes                       (67,254)       7,903       (8,475)      14,593
Income Tax Recovery
 (Expense)                     8,311        2,632       14,335       (4,626)
---------------------------------------------------------------------------
(Loss) Income from
 Continuing Operations       (58,943)      10,535        5,860        9,967
Net Loss from Discontinued
 Operations                     (292)         (84)        (434)        (832)
---------------------------------------------------------------------------
Net (Loss) Income, being
 Total Comprehensive (Loss)
 Income                    $ (59,235)    $ 10,451      $ 5,426      $ 9,135
---------------------------------------------------------------------------

Basic and diluted net
 (loss) income per common
 share:
  Continuing operations      $ (0.59)      $ 0.10       $ 0.06       $ 0.10
  Discontinued operations       0.00        (0.01)        0.00        (0.01)
---------------------------------------------------------------------------
Basic and diluted net
 (loss) income per common
 share                       $ (0.59)      $ 0.09       $ 0.06       $ 0.09
---------------------------------------------------------------------------
Weighted average number
 of common shares
 outstanding             100,633,018  100,302,174  100,605,274  100,168,132
Effect of dilutive
 stock options on
 continuing operations             -      390,093      419,260      490,920
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                         100,633,018  100,692,267  101,024,534  100,659,052
---------------------------------------------------------------------------


AINSWORTH LUMBER CO. LTD.
Condensed Interim Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)
(Unaudited)

                               Three months ended         Nine months ended
                                     September 30              September 30
                                2011         2010         2011         2010
---------------------------------------------------------------------------
CASH FLOWS FROM
 OPERATING ACTIVITIES
  Net (Loss) Income        $ (59,235)    $ 10,451      $ 5,426      $ 9,135
  Items not affecting cash
    Amortization of
     property, plant and
     equipment and
     intangibles               6,113        5,834       18,097       23,954
    Non-cash portion of
     interest expense          5,233        5,459       15,669       16,129
    Non-cash stock based
     compensation                211          216          655          515
    Foreign exchange loss
     (gain) on long-term
     debt                     42,782      (17,741)      27,798      (12,257)
    Loss (Gain) on
     derivative financial
     instrument                7,031          335        6,227       (5,344)
    (Gain) Loss on disposal
     of property, plant and
     equipment                  (526)        (351)        (258)        (465)
    Write-down of property,
     plant and equipment           -            -        1,614            -
    Write-down of long-term
     wood deposits                 -            -            -          648
    Change in non-current
     reforestation
     obligation                  (52)          33         (527)          38
    Deferred taxes           (10,155)      (7,333)     (16,190)          37
    Adjustment to net
     accrued pension
     benefit liability           138          (30)          60          (18)
    Gain on acquisition of
     High Level                    -            -      (72,544)           -
    Other                       (725)        (233)        (161)        (420)
---------------------------------------------------------------------------
                              (9,185)      (3,360)     (14,134)      31,952
    Change in non-cash
     operating working
     capital                  20,228       19,825       22,712       20,766
    Interest paid             (1,579)      (1,812)     (16,574)     (17,569)
    Income taxes paid            (82)           -          (85)         (23)
---------------------------------------------------------------------------
Cash from (used in)
 operating activities          9,382       14,653       (8,081)      35,126
---------------------------------------------------------------------------

CASH FLOWS FROM
 FINANCING ACTIVITIES
  Reduction in long-term
   debt                      (16,788)      (5,807)     (21,803)     (11,492)
  Issue of long-term debt     14,089            -       14,089            -
  Exercise of stock-
   options                       150          700          324          699
  Reduction in finance
   lease obligations          (1,041)        (169)      (2,260)        (361)
---------------------------------------------------------------------------
Cash used in financing
 activities                   (3,590)      (5,276)      (9,650)     (11,154)
---------------------------------------------------------------------------

CASH FLOWS FROM
 INVESTING ACTIVITIES
  (Purchase) Redemption of
   short-term investments       (170)      11,848        8,902        2,282
  Acquisition of High
   Level                           -            -      (20,000)           -
  Additions to property,
   plant and equipment        (1,838)          77       (5,683)      (8,884)
  Proceeds on disposal of
   property, plant and
   equipment                     674          451          777          604
  Derease (Increase) in
   other assets                   12          (19)        (297)        (182)
---------------------------------------------------------------------------
Cash from (used in)
 investing activities         (1,322)      12,357      (16,301)      (6,180)
---------------------------------------------------------------------------
Effect of foreign exchange
 rate changes on cash and
 cash equivalents                725         (542)         161         (354)
---------------------------------------------------------------------------
NET CASH INFLOW (OUTFLOW)      5,195       21,192      (33,871)      17,438
CASH AND CASH EQUIVALENTS,
 BEGINNING OF PERIOD          28,511       88,321       67,577       92,075
---------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS,
 END OF PERIOD              $ 33,706    $ 109,513     $ 33,706    $ 109,513
---------------------------------------------------------------------------
  Cash and cash
   equivalents                28,982       98,370       28,982       98,370
  Restricted cash              4,724       11,143        4,724       11,143
---------------------------------------------------------------------------
                            $ 33,706    $ 109,513     $ 33,706    $ 109,513
---------------------------------------------------------------------------