L-P official says company to sell Missoula plant, keep two mills

Forestry giant Louisiana-Pacific Corp. said Wednesday it will not sell its lumber mills
in Deer Lodge and Belgrade, but expects to close on the sale of the Missoula particleboard plant
before the end of the year. The prospective buyer was not identified.

By LEN IWANSKI Associated Press Missoulian

David Dugan, a company spokesman in Portland, Ore., said Louisiana-Pacific had a dozen
lumber mills on the market, but decided against selling eight of them because a depressed lumber
market led to bids that were below what the mills are worth.

"We said all along that these are excellent mills with excellent people," Dugan said. "Because
lumber prices have been depressed, we didn’t get the bids we thought we might; and we decided
we’re not going to sell these mills for less than they’re worth."

Along with Deer Lodge and Belgrade, the mills no longer for sale include four in Idaho: at
Sandpoint, Moyie Springs, Bonners Ferry and Chilco; one in Gwinn, Mich.; and one in St.
Michel, Quebec, Canada.

Still on the market are mills at Tacoma, Wash., Saratoga, Wyo., and Marianna and West Bay,
Fla., Dugan said.

Mike Nelson, manager of the Deer Lodge mill, said the company’s decision not to accept low
bids on the eight mills was good news for workers.

"They didn’t get the value of what these mills are worth, so they didn’t accept the bids," he said. "I
know the people here are happy and relieved, because they have a decision and they know
where they’re going in the future."

Nelson said that Louisiana-Pacific will organize the eight mills into an operating group that likely
will do business as LP Lumber.

Dugan said negotiations continue for the sale of the Missoula plant, but declined to identify the
prospective buyer.

Rebounding from a loss last year, Louisiana-Pacific on Wednesday reported a third-quarter
profit, with net income of $3.3 million, or 3 cents per share, on sales of $501.8 million.

In the third quarter of 2001, L-P had a net loss of $1.7 million, or 2 cents per share, on sales of
$504 million.

For the first nine months of this year, Louisiana-Pacific reported a net loss of $19.4 million, or 19
cents per share, on sales of $1.5 billion. For the same period in 2001 the company had a net loss
of $100.8 million, or 96 cents per share, on sales of $1.5 billion.

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