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Louisiana-Pacific Corporation News

Masisa Sells 75% of Its OSB Plant in Brazil to Louisiana-Pacific

SANTIAGO, Chile, May 13 PRNewswire-FirstCall — MASISA S.A. (hereinafter referred to as "Masisa" or "the Company") hereby informs that, on May 12, 2008, Masisa and Louisiana-Pacific South America S.A. (hereinafter referred to as "LP"), a Chilean related company of the U.S. entity called Louisiana- Pacific Corporation, signed the sale of 75% of the oriented strand board (hereinafter referred to as "OSB") plant located in the industrial complex of Ponta Grossa, Brazil, owned by Masisa's Brazilian subsidiary, Masisa do Brasil Ltda to LP.

According to Enrique Cibie, Masisa's CEO, the decision to sell the OSB plant, which has a production capacity of 350,000 cubic meters per annum, is based in "our intention to focus on our core business of producing and marketing furniture and interior architecture wood boards."

The price agreed on for all fixed assets of the OSB plant is US$74,000,000, which is around the book value of these assets, and this sale should not, therefore, have any significant effect on Masisa's accounting result. This price excludes the working capital. Of the 75% of OSB Brasil that Masisa is selling to LP, Masisa received on this date the amount of US$ 44,400,000, which is 80% of the amount LP agreed to pay. LP shall pay Masisa the remaining 20% once the latter physically hands over the OSB plant to OSB Brasil and certain conditions laid down in the share purchase and sale contract are met, which is estimated will occur in late July 2008. Until such time, Masisa will operate the OSB mill pursuant to an equipment leasing contract.

The proceeds Masisa obtains from this deal will mainly be allocated to reducing debt and/or financing Masisa's investments.

This transaction confirms Masisa's commitment of focusing on the development of its core business in Brazil, after approving, in September of 2007, the construction of a medium density particleboard (MDP) plant in Rio Grande do Sul. This plant is scheduled to start up in 2Q 2009 and entails an approximate investment of US$119 million and an annual production capacity of 750,000 cubic meters of MDP and an annual melaminating capacity of 300,000 cubic meters.

About Masisa

Masisa is a leading furniture and interior architecture board production and marketing company in Latin America. It owns forest assets in most of the region, thereby guaranteeing the raw material for its board business. Masisa's value proposal is to be a reliable brand, and a company close to all its stakeholders, anticipating market needs by means of product and service innovation, and operating responsibly towards society and the environment.

Masisa has 13 production plants in Chile, Argentina, Brazil, Venezuela and Mexico, all of which will have the ISO 14,001 and OHSAS 18,001 certification. Masisa is currently building an MDP plant in Montenegro, Brazil that will have an annual production capacity of 750,000 cubic meters of MDP and an annual melaminating capacity of 300,000 cubic meters. This plant will be the company's largest plant in Latin America, mainly for supply to the Brazilian market.

Masisa has three other divisions that operate in synergy with its core board division: forestry, solid wood, and retail.

Masisa is a publicly traded corporation and its shares are traded on the Santiago Stock Exchange. The Company had total sales of approximately US$ 966 million in 2007.

Forecasts and Estimates

This press release may contain forecasts, which are different statements from historical facts or current conditions, and include the management's current vision and estimates of future circumstances, industry conditions and the Company's performance. Some forecasts may be identified by the use of terms such as "may," "should," "anticipates," "believes," "estimates," "expects," "plans," "intends," "forecasts" and other similar expressions. Statements about future market share, projected future competitive strengths, the implementation of significant operating and financial strategies, the direction of future operations, and the factors or trends affecting financial conditions, liquidity, or operating income are examples of forecasts. Such statements reflect the current management vision and are subject to various risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. These statements are made based on many assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any changes in such assumptions or factors could lead to the current results of Masisa, and the projected Company activities, to materially differ from current expectations.

For further information, please contact: Investor Relations (56 2) 350 6038 investor.relations@masisa.com Internet: http://www.masisa.com

SOURCE Masisa S.A.

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