Norbord Announces USD 200 Million Note Issue

Toronto, Ontario, Canada, 09 February 2007 -- Norbord Inc. announced today it has arranged a private placement of USD 200 million of 10-year notes.

The notes, which are unsecured, bear interest at the rate of 6.45% per annum and mature on 15 February 2017. The notes will be issued by Norbord (Delaware) GP I, which is wholly-owned by Norbord, and will be fully and unconditionally guaranteed by Norbord Inc. Net proceeds will be used to repay Norbord's 8-1/8% debentures due 2008 at or before maturity. Pending such use, it is anticipated that Norbord will invest the net proceeds in investment grade fixed income securities and short-term money market securities. Closing is anticipated to occur on 14 February 2007.

The notes will not be and have not been registered under the U.S. Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States, or to, or for the account or benefit of, a U.S. person except in certain transactions exempt from the registration requirements of the Securities Act.

Norbord Profile

Norbord Inc. is an international producer of wood-based panels and is a publicly traded company listed on the TSX under the symbol NBD.