LP Reports Third Quarter 2004 Profits

October 27, 2004

NASHVILLE, Tenn.--(BUSINESS WIRE)--Oct. 27, 2004--Louisiana-Pacific Corporation (LP) (NYSE: LPX) today reported third quarter net income of $108 million, or $0.98 per diluted share, on sales from continuing operations of $741 million. In the third quarter of 2003, LP's net income was $125 million, or $1.17 per diluted share, on sales from continuing operations of $671 million. For the first nine months of 2004, LP reported net income of $407 million, or $3.72 per diluted share, on sales from continuing operations of $2.3 billion compared to net income of $108.7 million, or $1.03 per diluted share, on sales from continuing operations of $1.6 billion for the first nine months of 2003.

For the third quarter of 2004, income from continuing operations was $106 million, or $0.96 per diluted share. In the third quarter of 2003, LP's income from continuing operations was $110 million, or $1.04 per diluted share. For the first nine months of 2004, income from continuing operations was $408 million, or $3.72 per diluted share. For the first nine months of 2003, income from continuing operations before cumulative effect of accounting principle was $122 million, or $1.15 per diluted share.

"We had another strong quarter, as housing and remodeling markets continued to drive healthy demand for all our building products," said Mark Suwyn, LP's chairman and CEO. "Each of our segments recorded year-over-year sales growth in the quarter and generated operating profits. This is particularly key as we have faced significant cost increases from energy, oil-based resins and the strengthening Canadian dollar."

"LP has completed steps to focus on four primary business segments and is now investing to grow and continuously improve our plants and operations. These efforts are backed by a strong balance sheet. I will retire October 31, 2004, with the company in a very strong position and look forward with confidence as Rick Frost and the LP management team further build on that position," Suwyn concluded.

"I am very excited to have this opportunity with our management team consolidated here in Nashville," said Rick Frost, LP's incoming CEO. "The overall fundamentals in our markets continue to remain strong: low interest rates, robust housing starts and increasing repair and remodeling activity." Frost continued, "LP will be taking about 80 days of downtime in our OSB mills to implement previously announced capital projects and perform needed maintenance on mills that have been running very hard during the building season. This timing is appropriate as we expect the usual seasonal slowdown in demand."

At 11:00 a.m. EDT (8:00 a.m. PDT) today, LP will host a webcast on its third quarter 2004 financial results. To access the live webcast and accompanying presentation, visit www.lpcorp.com and go to the "Investor Relations" section from the main menu.

LP is a premier supplier of building materials, delivering 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.

FORWARD LOOKING STATEMENTS

This news release contains statements concerning Louisiana-Pacific Corporation's (LP) future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters addressed in these statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts, market demand for the company's products, and prices for structural products; the effect of forestry, land use, environmental and other governmental regulations; the ability to obtain regulatory approvals; and the risk of losses from fires, floods and other natural disasters. These and other factors that could cause or contribute to actual results differing materially from those contemplated by such forward-looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

FINANCIAL AND QUARTERLY DATA

(Dollar amounts in millions, except per share amounts) (Unaudited)

                                     Quarter Ended  Nine Months Ended
                                   -----------------------------------
                                    September       September
                                       30,             30,
                                   -----------------------------------
                                        2004   2003     2004     2003
                                   -----------------------------------

 Net sales                            $740.5 $670.7 $2,261.1 $1,550.4

Income (loss) before taxes and
 equity in earnings of
  unconsolidated affiliates           $179.0 $197.8   $649.9   $220.5

Income from continuing operations
 before cumulative effect of
  change in accounting principle
   excluding (gain) loss on sale
  or impairment of long-lived
   assets, other operating credits
  and charges, net and loss on
   early extinguishment of debt       $117.6 $101.0   $456.1   $102.1

Income (loss) from continuing
 operations before cumulative
   effect of change in accounting
    principle                         $106.3 $110.4   $407.9   $121.5

 Net income (loss)                    $108.1 $124.5   $407.0   $108.7

 Net income (loss) per share -
  basic                                $0.99  $1.18    $3.76    $1.04
                           -diluted    $0.98  $1.17    $3.72    $1.03
 Average shares outstanding (in
  millions)
Basic                                  109.6  105.1    108.2    105.1
Diluted                                110.7  106.3    109.5    105.5

Calculation of income from continuing operations before cumulative effect of change in accounting principle excluding gain or loss on sale or impairment of long-lived assets, other operating credits and charges, net and loss on early extinguishment of debt:


Income from continuing operations
 before cumulative                     $106.3  $110.4  $407.9  $121.5
   effect of change in accounting
    principle

(Gain) loss on sale or impairment of
 long-lived assets                        2.7   (22.5)   12.5   (64.2)
Other operating credits and charges,
 net                                     15.5     5.7    24.6    31.1
Loss on early extinguishment of debt      0.2     1.5    41.5     1.5
                                       ------- ------- ------- -------
                                         18.4   (15.3)   78.6   (31.6)
Provision (benefit) for income taxes      7.1    (5.9)   30.4   (12.2)
                                       ------- ------- ------- -------
                                         11.3    (9.4)   48.2   (19.4)
                                       ------- ------- ------- -------

                                       $117.6  $101.0  $456.1  $102.1
                                       ======= ======= ======= =======

                     Per share - basic  $1.07   $0.96   $4.22   $0.97
                               diluted  $1.06   $0.95   $4.17   $0.97

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

(Dollar amounts in millions, except per share amounts) (Unaudited)

                                    Quarter Ended  Nine Months Ended
                                     September 30,    September 30,
                                   -----------------------------------
                                     2004    2003      2004      2003
                                   ------- ------- --------- ---------

 Net Sales                         $740.5  $670.7  $2,261.1  $1,550.4

OPERATING COSTS AND EXPENSES
   Cost of sales                    462.3   399.4   1,286.1   1,101.6
   Depreciation, amortization and
    cost of timber harvested         39.9    33.3     105.4      96.8
   Selling and administrative        39.6    42.5     124.8     119.0
   (Gain) loss on sale or
    impairment of long lived
    assets                            2.7   (22.5)     12.5     (64.2)
   Other operating credits and
    charges, net                     15.5     5.7      24.6      31.1
                                   ------- ----------------- ---------
      Total operating costs and
       expenses                     560.0   458.4   1,553.4   1,284.3
                                   ------- ----------------- ---------

Income from operations              180.5   212.3     707.7     266.1
                                   ------- ------- --------- ---------

NON-OPERATING INCOME (EXPENSE)
   Foreign currency exchange gain
    (loss)                            1.8     0.9       2.9      (0.8)
   Loss on early extinguishment of
    debt                             (0.2)   (1.5)    (41.5)     (1.5)
   Interest expense                 (14.4)  (22.0)    (49.8)    (67.2)
   Interest income                   11.3     8.1      30.6      23.9
                                   ------- ------- --------- ---------
      Total non-operating income
       (expense)                     (1.5)  (14.5)    (57.8)    (45.6)
                                   ------- ------- --------- ---------

Income before taxes and equity in
 earnings of
  unconsolidated affliates          179.0   197.8     649.9     220.5
Provision for income taxes           73.2    88.1     243.8      99.3

Equity in (earnings) loss of
 unconsolidated affliates            (0.5)   (0.7)     (1.8)     (0.3)
                                   ------- ------- --------- ---------

Income from continuing operations
 before cumulative
   effect of change in accounting
    principle                       106.3   110.4     407.9     121.5
                                   ------- ------- --------- ---------

DISCONTINUED OPERATIONS
Income (loss) from discontinued
 operations                           3.0    22.8      (1.4)    (20.7)
Provision (benefit) for income
 taxes                                1.2     8.7      (0.5)     (7.8)
                                   ------- ------- --------- ---------
Income (loss) from discontinued
 operations                           1.8    14.1      (0.9)    (12.9)
                                   ------- ------- --------- ---------

Income (loss) before cumulative
 effect of change in accounting
       principle                    108.1   124.5     407.0     108.6

Cumulative effect of change in
 accounting principle                   -       -         -       0.1
                                   ------- ------- --------- ---------

 Net income (loss)                 $108.1  $124.5    $407.0    $108.7
                                   ======= ======= ========= =========

Net income (loss) per share of
 common stock:
Income (loss) from continuing
 operations                         $0.97   $1.05     $3.77     $1.16
Income (loss) from discontinued
 operations                          0.02    0.13     (0.01)    (0.12)
Cumulative effect of change in
 accounting principle                   -       -         -         -
                                   ------- ------- --------- ---------
Net Income (Loss)  Per Share -
 Basic                              $0.99   $1.18     $3.76     $1.04
                                   ======= ======= ========= =========

Net income (loss) per share of
 common stock:
Income (loss) from continuing
 operations                         $0.96   $1.04     $3.72     $1.15
Income (loss) from discontinued
 operations                          0.02    0.13         -     (0.12)
Cumulative effect of change in
 accounting principle                   -       -         -         -
                                   ------- ------- --------- ---------
Net Income (Loss)  Per Share -
 Diluted                            $0.98   $1.17     $3.72     $1.03
                                   ======= ======= ========= =========

Average shares of common stock
  outstanding (in millions) -
   Basic                            109.6   105.1     108.2     105.1
                                   ======= ======= ========= =========
                          -
                           Diluted  110.7   106.3     109.5     105.5
                                   ======= ======= ========= =========

CONDENSED CONSOLIDATED BALANCE SHEETS

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

(Dollar amounts in millions) (Unaudited)

                                                             September
                                                              30, 2004
                                                            ----------
ASSETS
Cash and cash equivalents                                     $843.1
Short term investments                                         303.6
Receivables,
 net                                                           175.6
Inventories                                                    197.7
Prepaid expenses                                                15.7
Deferred income taxes                                           35.3
Current assets of discontinued operations                       11.0
                                                            ---------
        Total current assets                                 1,582.0

Timber and timberlands
Forest
 licenses                                                       80.0
Deposits and other                                              12.4
                                                            ---------
        Total timber and timberlands                            92.4

Property, plant and equipment                                1,805.1
Accumulated depreciation                                    (1,044.0)
                                                            ---------
Net property, plant and equipment                              761.1

Goodwill                                                       276.7
Other intangible assets                                         24.5
Notes receivable from asset sales                              403.9
Long-term investments                                           35.4
Restricted
 cash                                                           66.7
Other assets                                                   128.6
Long-term assets of discontinued operations                     35.2
                                                            ---------
        Total assets                                        $3,406.5
                                                            =========

LIABILITIES AND EQUITY
Current portion of long-term debt                             $171.1
Accounts payable and accrued liabilities                       246.9
Current portion of contingency reserves                         15.0
                                                            ---------
        Total current liabilities                              433.0

Long-term debt, excluding current portion:
        Limited recourse notes payable                         396.5
        Other long-term debt                                   237.8
                                                            ---------
            Total long-term debt, excluding current portion    634.3

Contingency reserves, excluding current portion                 41.3
Other long-term liabilities                                     79.5
Deferred income taxes                                          474.2

Commitments and contingencies

Stockholders' equity:
        Common stock                                           116.9
        Additional paid-in capital                             426.3
        Retained earnings                                    1,403.3
        Treasury stock                                        (130.0)
        Accumulated comprehensive loss                         (72.3)
                                                            ---------
            Total stockholders' equity                       1,744.2
                                                            ---------
            Total liabilities and equity                    $3,406.5
                                                            =========


                                                             December
                                                              31, 2003
                                                             ---------
ASSETS
Cash and cash equivalents                                      $925.9
Short term investments                                              -
Receivables,
 net                                                            136.2
Inventories                                                     177.5
Prepaid expenses                                                 11.1
Deferred income taxes                                            51.7
Current assets of discontinued operations                        22.8
                                                             ---------
        Total current assets                                  1,325.2

Timber and timberlands
Forest
 licenses                                                        83.3
Deposits and other                                               11.5
                                                             ---------
        Total timber and timberlands                             94.8

Property, plant and equipment                                 1,778.3
Accumulated depreciation                                       (988.2)
                                                             ---------
Net property, plant and equipment                               790.1

Goodwill                                                        276.7
Other intangible assets                                          26.6
Notes receivable from asset sales                               403.9
Long-term investments                                               -
Restricted
 cash                                                           110.7
Other assets                                                    121.1
Long-term assets of discontinued operations                      55.3
                                                             ---------
        Total assets                                         $3,204.4
                                                             =========

LIABILITIES AND EQUITY
Current portion of long-term debt                                $8.3
Accounts payable and accrued liabilities                        251.3
Current portion of contingency reserves                          43.0
                                                             ---------
        Total current liabilities                               302.6

Long-term debt, excluding current portion:
        Limited recourse notes payable                          396.5
        Other long-term debt                                    624.2
                                                             ---------
            Total long-term debt, excluding current portion   1,020.7

Contingency reserves, excluding current portion                  55.6
Other long-term liabilities                                     106.9
Deferred income taxes                                           407.7

Commitments and contingencies

Stockholders' equity:
        Common stock                                            116.9
        Additional paid-in capital                              442.3
        Retained earnings                                     1,018.1
        Treasury stock                                         (195.2)
        Accumulated comprehensive loss                          (71.2)
                                                             ---------
            Total stockholders' equity                        1,310.9
                                                             ---------
            Total liabilities and equity                     $3,204.4
                                                             =========

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

(Dollar amounts in millions) (Unaudited)


                                                         Nine Months
                                                            Ended
                                                         September 30,
                                                        --------------
                                                          2004   2003
                                                        --------------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                              $407.0 $108.7
Adjustments to reconcile net income to net cash
provided (used in)  by operating activities:
Depreciation, amortization and cost of timber harvested  107.0  104.6
(Gain) loss on sale or impairment of long-lived assets    22.7  (46.5)
Loss on early debt extinguishment                         41.5    1.5
Exchange (gain) loss on remeasurement                     (4.4)   9.4
Other operating charges and credits, net                  14.2   37.7
Increase in contingency reserves                           5.1    7.9
Cash settlement of contingencies                         (47.6) (43.7)
Cumulative effect of change in accounting principle          -    0.1
Pension payments                                         (41.1) (26.8)
Pension expense                                           12.2   10.3
Other adjustments, net                                     5.5    6.6
Increase in receivables                                  (35.3) (62.5)
(Increase) decrease in inventories                        (8.3)  22.3
Decrease in prepaid expenses                              (4.7)  (3.3)
(Increase) decrease in accounts payable and accrued
 liabilities                                             (13.6)  21.4
Increase in deferred income taxes                         84.3   81.1
                                                        --------------
   Net cash provided by operating activities             544.5  228.8
                                                        --------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment additions                  (91.2) (46.6)
Proceeds from timber & timberland sales, net                 -   66.5
Proceeds from asset sales                                 16.1   31.9
Investment in joint ventures                             (12.7)  (1.6)
Decrease in restricted cash from asset sales                 -   37.1
Proceeds of sales of investments                         185.0      -
Cash paid for purchase of investments                   (523.5)     -
Return of capital from unconsolidated subsidiary             -  104.8
Other investing activities, net                           (0.2)  (1.8)
                                                        --------------
   Net cash (used in) provided by investing activities  (426.5) 190.3
                                                        --------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Net repayments under revolving credit facilities          (4.5) (31.0)
Repayment of long-term debt                             (259.2) (55.2)
Sale of common stock under equity plans                   40.0    9.2
Payment of cash dividends                                (21.8)     -
Purchase of treasury shares                               (2.0)     -
Decrease in restricted cash under LOCs                    44.0  (99.4)
Other financing activities, net                            0.5    0.6
                                                        --------------
   Net cash used in financing activities                (203.0)(175.8)
                                                        --------------

EFFECT OF EXCHANGE RATE ON CASH:                           2.2    1.2
                                                        --------------

Net increase (decrease) in cash and cash equivalents     (82.8) 244.5
Cash and cash equivalents at beginning of period         925.9  137.3
                                                        --------------

Cash and cash equivalents at end of period              $843.1 $381.8
                                                        ==============

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

SELECTED SEGMENT INFORMATION

(Dollar amounts in millions) (Unaudited)

                                      Quarter Ended Nine Months Ended
                                       September 30,   September 30,
                                      --------------------------------
                                        2004   2003     2004     2003
                                      --------------------------------

Net sales:
OSB                                   $430.2 $402.9 $1,416.6   $826.6
Composite Wood Products                122.0  121.7    345.4    311.2
Plastic Building Products               67.2   56.3    182.6    156.5
Engineered Wood Products               112.4   80.4    293.3    210.1
Other                                   12.6   21.8     31.7     69.8
Less: Intersegment sales                (3.9) (12.4)    (8.5)   (23.8)
                                      --------------------------------
                                      $740.5 $670.7 $2,261.1 $1,550.4
                                      ================================

Operating profit (loss):
OSB                                   $198.4 $196.6   $761.2   $247.8
Composite Wood Products                 19.8   23.4     53.1     44.0
Plastic Building Products                2.3    4.0      7.9     13.5
Engineered Wood Products                 3.0   (0.7)     2.0     (1.5)
Other                                    0.8   (1.6)    (1.6)     0.5
Other operating credits and charges,
 net                                   (15.5)  (5.7)   (24.6)   (31.1)
Gain (loss) on sale or impairment of
 long-lived assets                      (2.7)  22.5    (12.5)    64.2
General corporate and other expenses,
 net                                   (25.6) (26.2)   (77.8)   (71.3)
Foreign currency gains (losses)          1.8    0.9      2.9     (0.8)
Gain (loss) on early extinguishment of
 debt                                   (0.2)  (1.5)   (41.5)    (1.5)
Interest income (expense), net          (3.1) (13.9)   (19.2)   (43.3)
                                      --------------------------------
Income before taxes and equity in
 earnings
of unconsolidated affliates           $179.0 $197.8   $649.9   $220.5
                                      ================================


    LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

    NOTES TO FINANCIAL DATA
    (Dollar amounts in millions, except per share amounts) (Unaudited)

    1.  Results of operations for interim periods are not necessarily
        indicative of results to be expected for an entire year.

    2.  Other Operating Charges and Credits, Net: The major components
        of "Other operating charges and credits, net" in the
        Consolidated Statements Of Income for the quarter and nine
        months ended September 30 and are reflected in the table below
        and are described in the paragraph following the table:


Quarter Ended September 30,                  2004            2003
                                       --------------- ---------------
                                       Pre-tax After   Pre-tax After
                                                 tax             tax
                                       ------- ------- ------- -------
Revisions to environmental contingency
 reserves                                $0.4    $0.2      $-      $-
Loss on energy contract                     -       -    (5.0)   (3.1)
Charges associated with the corporate
 relocation                              (5.1)   (3.1)      -       -
Charges associated with CEO retirement  (10.7)   (6.6)      -       -
Other                                    (0.1)   (0.1)   (0.7)   (0.4)
                                       ------- ------- ------- -------
                                       $(15.5)  $(9.5)  $(5.7)  $(3.1)
                                       ======= ======= ======= =======


Nine Months Ended September 30,          2004            2003
                                       --------------- ---------------
                                       Pre-tax After   Pre-tax After
                                                 tax             tax
                                       ------- ------- ------- -------
Revisions to environmental contingency
 reserves                                $2.1    $1.3   $(2.7)  $(1.7)
Additions to product related
 contingency reserves                       -       -    (6.7)   (4.1)
Loss on energy contract                     -       -    (5.0)   (3.1)
Charges associated with the corporate
 relocation                              (9.5)   (5.8)      -       -
Loss related to assets and liabilities
 transferred
under contractual arrangement               -       -   (16.0)   (9.8)
Charges associated with CEO retirement  (10.7)   (6.6)      -       -
Increase in litigation reserves          (6.0)   (3.7)      -       -
Other                                    (0.5)   (0.3)   (0.7)   (0.4)
                                       ------- ------- ------- -------
                                       $(24.6) $(15.1) $(31.1) $(19.1)
                                       ======= ======= ======= =======

In the second quarter of 2003, LP recorded a loss of $16.0 million ($9.8 million after taxes, or $0.09 per diluted share) related to assets and liabilities transferred under contractual arrangement due to the increase in a valuation allowance associated with notes receivable from Samoa Pacific, a loss of $6.7 million ($4.1 million after taxes, or $0.04 per diluted share) from increases in product related contingency reserves associated with the National OSB class action settlement and a loss of $2.7 million ($1.7 million after taxes, or $0.01 per diluted share) associated with environmental reserves in relation to our former Alaska operations.

In the third quarter of 2003, LP recorded a loss a loss of $5.0 million ($3.1 million after taxes, or $0.03 per diluted share) related to an energy contract associated with Samoa Pacific and a loss of $0.7 million ($0.4 million after taxes, or $0.00 per diluted share) on severance recorded as part of the divesture plan.

In the first quarter of 2004, LP recorded a gain of $1.7 million ($1.0 after taxes, or $0.01 per diluted share) associated with a reduction in environmental reserves in relation to our former Alaska operations, a charge of $6.0 million ($3.7 million after taxes, or $0.3 per diluted share) for an increase in litigation reserves due to an adverse court ruling and a charge of $2.0 million ($1.2 million after taxes, or $0.01 per diluted share) associated with the relocation and consolidation of LP's corporate offices to Nashville, Tennessee.

In the second quarter of 2004, LP recorded a charge of $2.4 million ($1.5 million after taxes, or $0.01 per diluted share) associated with the relocation and consolidation of LP's corporate offices to Nashville, Tennessee.

In the third quarter of 2004, LP recorded a charge of a charge of $5.1 million ($3.1 million after taxes, or $0.03 per diluted share) associated with the relocation and consolidation of LP's corporate offices to Nashville, Tennessee, a charge of $10.7 million ($6.6 million after taxes, or $0.6 per diluted share) associated with certain compensation arrangements impacted by Mr. Suwyn's retirement and a gain of $0.4 million ($0.2 million after taxes, or $0.00 per diluted share) associated with a reduction in environmental reserves in relation to our former Alaska operations.

3. Gain (Loss) on Sale or Impairment of Long-Lived Assets:

The major components of "Gain (loss) on sale or impairment of long-lived assets" in the Consolidated Statements Of Income for the quarter and nine months ended September 30 are reflected in the table below and are described in the paragraphs following the tables:


Quarter Ended September 30,                    2004          2003
                                          -------------- -------------
                                          Pre-tax After  Pre-   After
                                                   tax    tax    tax
Gain on sales of timber                       $-     $-  $22.1  $13.5
Gain (loss) on other long-lived assets,
 net                                         0.6    0.4    0.4    0.2
Impairment charges on fixed assets          (3.3)  (2.0)
                                          ------- ------ ------ ------
                                           $(2.7) $(1.6) $22.5  $13.8
                                          ======= ====== ====== ======


Nine months ended September 30,                2004          2003
                                          -------------- -------------
                                          Pre-tax After  Pre-   After
                                                   tax    tax    tax
Gain on sales of timber                       $-     $-  $63.9  $39.2
Gain (loss) on other long-lived assets,
 net                                         0.5    0.3    0.3    0.2
Impairment charges on fixed assets         (13.0)  (7.9)     -      -
                                          ------- ------ ------ ------
                                          $(12.5) $(7.6) $64.2  $39.4
                                          ======= ====== ====== ======

In the first quarter of 2003, LP recorded a gain of $12.5 million ($7.7 million after taxes, or $0.07 per diluted share) associated with the sale of a portion of LP's timberlands as part of LP's divestiture plan.

In the second quarter of 2003, LP recorded a gain of $29.3 million ($17.9 million after taxes, or $0.17 per share) associated with the sale of a portion of LP's timberlands as part of LP's divestiture plan.

In the third quarter of 2003, LP recorded a gain of $22.1 million ($13.5 million after taxes, or $0.13 per diluted share) associated with the sale of a portion of LP's timberlands as part of LP's divestiture plan and a gain of $0.4 million ($0.2 million after taxes, or $0.00 per diluted share) associated with the sale of certain other assets.

In the first quarter of 2004, LP recorded a loss of $9.7 million ($6.4 million after taxes, or $0.05 per diluted share) on the cancellation of a capital project to build a veneer mill in British Columbia.

In the third quarter of 2004, LP recorded a loss of $2.8 million ($1.7 million after taxes, or $0.02 per diluted share) on a non-operating OSB mill and $0.5 million ($0.3 after taxes, or $0.00 per diluted share) additional expense associated with the on the cancellation of a capital project to build a veneer mill in British Columbia to reduce the values to the net realizable sale price for these assets and a gain of $0.6 million ($0.4 million after taxes, or $0.00 per diluted share) associated with the sale of certain other assets.

4. Cumulative Effect of Change in Accounting Principle:

LP adopted Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations," as of January 1, 2003. This statement addresses the retirement of long-lived assets and the associated retirement costs. Under this statement, we will record both an initial asset and a liability for the present value of estimated costs of legal obligations associated with the retirement of long-lived assets. These initial assets will be depreciated over the expected useful life of the asset. Upon adoption of this statement, we changed our accounting for landfill closures, reforestation obligations associated with certain timber licenses in Canada and other assets. Implementation of this standard resulted in income of $0.2 million (or $0.1 million after taxes) recorded as a "cumulative effect of change in accounting principle" as of January 1, 2003.

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

SUMMARY OF PRODUCTION VOLUMES


                                        Quarter Ended   Nine Months
                                         September 30,      Ended
                                                        September 30,
                                        -------------- ---------------
                                          2004   2003    2004    2003
                                        ------- ------ ------- -------

Oriented strand board, million square
 feet 3/8" basis                         1,424  1,367   4,186   3,840

Oriented strand board, million square
 feet 3/8" basis
     (produced by wood-based siding
      mills)                                16     86      24     201

Wood-based siding, million square feet
 3/8" basis                                269    183     784     604

Engineered I-Joist, million lineal feet     25     24      70      66

Laminated veneer lumber (LVL), thousand
 cubic feet                              3,131  2,593   9,021   7,349

Composite Decking, thousand lineal feet 12,709  6,943  29,161  23,387

Vinyl Siding, squares                      816    759   2,219   2,061

CONTACT: Louisiana-Pacific Corporation, Nashville
Media Relations:
Mary Cohn, 615-986-5600
or
Investor Relations:
Mike Kinney or Becky Barckley, 615-986-5600
www.lpcorp.com
SOURCE: Louisiana-Pacific Corporation