<PAGE>

                                                                    Exhibit 99.1

                             LETTER OF TRANSMITTAL

                            AINSWORTH LUMBER CO. LTD.

                                OFFER TO EXCHANGE

                                 ALL OUTSTANDING

                  SENIOR FLOATING RATE NOTES DUE APRIL 1, 2013
                   (US$75,000,000 AGGREGATE PRINCIPAL AMOUNT)

                                       FOR

                  SENIOR FLOATING RATE NOTES DUE APRIL 1, 2013
                   (US$75,000,000 AGGREGATE PRINCIPAL AMOUNT)
           WHICH HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933

                PURSUANT TO THE PROSPECTUS, DATED ________, 2006

THE EXCHANGE OFFER WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON ________,
2006 (THE "EXPIRATION DATE") UNLESS THE OFFER IS EXTENDED BY AINSWORTH IN ITS
SOLE DISCRETION. TENDERS MAY BE WITHDRAWN AT ANY TIME PRIOR TO 5:00 P.M., NEW
YORK CITY TIME ON THE EXPIRATION DATE.

                                 EXCHANGE AGENT:

                              THE BANK OF NEW YORK

<TABLE>
<CAPTION>
<S>                                            <C>
By Hand, Mail or Overnight Delivery                By Facsimile Transmission
        The Bank of New York                   (for Eligible Institutions only):
      101 Barclay Street - 21W                           (212) 815-5802
      New York, New York 01286                      Attention: Lesley Daley
      Attention: Lesley Daley
       For Information Call:                         Confirm by Telephone:
           (212) 815-4991                                (212) 815-4991
</TABLE>

     DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET
FORTH ABOVE OR TO THE DEPOSITORY TRUST COMPANY (AUTOMATED TENDER OFFER PROGRAM)
OR TRANSMISSION OF THIS LETTER OF TRANSMITTAL VIA A FACSIMILE TRANSMISSION TO A
NUMBER OTHER THAN AS SET FORTH ABOVE WILL NOT CONSTITUTE A VALID DELIVERY.
PLEASE READ THIS ENTIRE LETTER OF TRANSMITTAL CAREFULLY BEFORE COMPLETING ANY
BOX BELOW.

     By execution hereof, the undersigned acknowledges receipt of the
prospectus, dated ________, 2006 (the "Prospectus"), of Ainsworth Lumber Co.
Inc. ("Ainsworth"), which, together with this letter of transmittal (this
"Letter of Transmittal"), constitute Ainsworth's offer (the "Exchange Offer") to
exchange US$1,000 in stated amount at maturity of a new series of Senior
Floating Rate Notes due April 1, 2013 of Ainsworth (the "Exchange Notes") for
each US$1,000 in stated amount at maturity of outstanding Senior Floating Rate
Notes due April 1, 2013 of Ainsworth (the "Original Notes", and together with
the Exchange Notes, the "Notes"). The terms of the Exchange Notes are identical
to the terms of the Original Notes, and evidence the same indebtedness as the
Original Notes, except that the Exchange Notes will be registered under the
Securities

<PAGE>

Act of 1933, as amended (the 'Securities Act"), will not contain restrictions on
transfer or provisions relating to special interest under circumstances related
to the timing of the Exchange Offer, will bear a different CUSIP number than the
Original Notes and will not entitle Holders (as defined below) to registration
rights.

     This Letter of Transmittal is to be used by Holders if: (i) certificates
representing Original Notes are to be physically delivered to the Exchange Agent
by Holders; (ii) tender of Original Notes is to be made by book-entry transfer
to the Exchange Agent's account at The Depository Trust Company ("DTC") by any
financial institution that is a participant in DTC and whose name appears on a
security position listing as the owner of Original Notes (such participants,
acting on behalf of Holders, together with such Holders, "Acting Holder"); or
(iii) tender of Original Notes is to be made according to the guaranteed
delivery procedures. DELIVERY OF DOCUMENTS TO DTC DOES NOT CONSTITUTE DELIVERY
TO THE EXCHANGE AGENT.

     If delivery of the Original Notes is to be made by book-entry transfer to
the account maintained by the Exchange Agent at DTC as set forth in (ii) in the
immediately preceding paragraph, this Letter of Transmittal need not be manually
executed; provided, however, that tenders of Original Notes must be effected in
accordance with the procedures mandated by DTC's Automated Tender Offer Program
("ATOP"). To tender Original Notes through ATOP, the electronic instructions
sent to DTC and transmitted by DTC to the Exchange Agent must contain the
character by which the participant acknowledges its receipt of, and agrees to be
bound by, this Letter of Transmittal.

     Holders of Original Notes whose certificates are not immediately available,
or who are unable to deliver confirmation of the book-entry tender of their
Original Notes into the Exchange Agent's account at the Book-Entry Transfer
Facility (a "Book-Entry Confirmation") and all other documents required by this
Letter of Transmittal to the Exchange Agent on or prior to the Expiration Date,
must tender their Original Notes according to the guaranteed delivery procedures
set forth in the Prospectus under the caption "Exchange Offer--Guaranteed
Delivery Procedures".

     Unless the context requires otherwise, the term "Holder" for purposes of
this Letter of Transmittal means: (i) any person in whose name Original Notes
are registered on the books of Ainsworth or any other person who has obtained a
properly completed bond power from the registered Holder or (ii) any participant
in DTC whose Original Notes are held of record by DTC who desires to deliver
such Original Notes by book-entry transfer at DTC.

     The undersigned has completed, executed and delivered this Letter of
Transmittal to indicate the action the undersigned desires to take with respect
to the Exchange Offer.

     The instructions included with this Letter of Transmittal must be followed.
Questions and requests for assistance or for additional copies of the
Prospectus, this Letter of Transmittal and the Notice of Guaranteed Delivery may
be directed to the Exchange Agent.

<PAGE>

HOLDERS WHO WISH TO ACCEPT THE EXCHANGE OFFER AND TENDER THEIR ORIGINAL NOTES
(OTHER THAN BY BOOK-ENTRY TRANSFER AS DESCRIBED ABOVE) MUST COMPLETE THIS LETTER
OF TRANSMITTAL IN ITS ENTIRETY.

     List below the Original Notes to which this Letter of Transmittal relates.
If the space provided below is inadequate, the certificate numbers and principal
amount of Original Notes should be listed on a separate signed schedule affixed
hereto. Tenders of Original Notes will be accepted only in authorized
denominations of US$1,000.

                          DESCRIPTION OF ORIGINAL NOTES

<TABLE>
<CAPTION>
                                       Certificate Number(s)           Amount of
Name(s) and Address(es) of Holder(s)     (Attached signed      Original Notes Tendered
     (Please fill in, if blank)          list if necessary)*     (if less than all)**
------------------------------------   ---------------------   -----------------------
<S>                                    <C>                     <C>

------------------------------------   ---------------------   -----------------------

------------------------------------   ---------------------   -----------------------

------------------------------------   ---------------------   -----------------------

------------------------------------   ---------------------   -----------------------

------------------------------------   ---------------------   -----------------------

------------------------------------   ---------------------   -----------------------

------------------------------------   ---------------------   -----------------------

------------------------------------   ---------------------   -----------------------

TOTAL
      ------------------------------   ---------------------   -----------------------
</TABLE>

*    Need not be completed by Holders who tender Original Notes by book-entry
     transfer.

**   Unless otherwise indicated in this column, a holder will be deemed to have
     tendered ALL of the Original Notes represented by the Original Notes
     indicated in column 2. See Instruction 2. Original Notes tendered hereby
     must be in denominations of principal amount of US$1,000 and any integral
     multiple thereof. See Instruction 1.

<PAGE>

[ ]  CHECK HERE IF TENDERED ORIGINAL NOTES ARE BEING DELIVERED BY BOOK-ENTRY
     TRANSFER MADE TO THE ACCOUNT MAINTAINED BY THE EXCHANGE AGENT WITH THE
     BOOK-ENTRY TRANSFER FACILITY AND COMPLETE THE FOLLOWING:

Name of Tendering Institution _________________________________________________

Account Number ________________________________________________________________

Transaction Code Number _______________________________________________________

[ ]  CHECK HERE IF TENDERED ORIGINAL NOTES ARE BEING DELIVERED PURSUANT TO A
     NOTICE OF GUARANTEED DELIVERY PREVIOUSLY DELIVERED TO THE EXCHANGE AGENT
     AND COMPLETE THE FOLLOWING:

Name(s) of Holder(s) of Original Notes: ________________________________________

Window Ticket No. (if any): ____________________________________________________

Date of Execution of Notice of Guaranteed Delivery: ____________________________

Name of Eligible Institution that Guaranteed Delivery: _________________________

If Delivered by Book-Entry Transfer: ___________________________________________

     Name of Tendering Institution: ____________________________________________

     Account Number: ___________________________________________________________

     Transaction Code No.: _____________________________________________________

[ ]  CHECK HERE IF YOU ARE A BROKER-DEALER OR OTHER PARTY ENTITLED, PURSUANT TO
     THE TERMS OF THE REGISTRATION RIGHTS AGREEMENT REFERRED TO IN THE
     PROSPECTUS, TO RECEIVE AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE
     PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO WITHIN
     180 DAYS AFTER THE EXPIRATION DATE.

Name: __________________________________________________________________________

Address: _______________________________________________________________________

     If the undersigned is not a broker-dealer, the undersigned represents that
it is not engaged in, and does not intend to engage in, a distribution of
Exchange Notes. If the undersigned is a broker-dealer that will receive Exchange
Notes for its own account in exchange for Original Notes that were acquired as a
result of market-making activities or other trading activities, it acknowledges
and represents that it will deliver a prospectus meeting the requirements of the
Securities Act in connection with any resale of such Exchange Notes; however, by
so acknowledging and representing and by delivering such a prospectus the
undersigned will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act. If the undersigned is a broker-dealer that will
receive Exchange Notes, it represents that the Original Notes to be exchanged
for the Exchange Notes were acquired as a result of market-making activities or
other trading activities. In addition, such broker-dealer represents that it is
not acting on behalf of any person who could not truthfully make the foregoing
representations.

<PAGE>

               PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY

Ladies and Gentlemen:

     Upon the terms and subject to the conditions of the Exchange Offer, the
undersigned hereby tenders to Ainsworth the above-described principal amount of
Original Notes. Subject to, and effective upon, the acceptance for exchange of
the Original Notes tendered herewith, the undersigned hereby exchanges, assigns
and transfers to, or upon the order of, Ainsworth all right, title and interest
in and to such Original Notes. The undersigned hereby irrevocably constitutes
and appoints the Exchange Agent as the true and lawful agent and
attorney-in-fact of the undersigned (with full knowledge that said Exchange
Agent also acts as the agent of Ainsworth and as Trustee under the Indenture for
the Original Notes and the Exchange Notes) to cause the Original Notes to be
assigned, transferred and exchanged.

     The undersigned represents and warrants that it has full power and
authority to tender, exchange, assign and transfer the Original Notes and to
acquire Exchange Notes issuable upon the exchange of such tendered Original
Notes, and that, when the same are accepted for exchange, Ainsworth will acquire
good and unencumbered title to the tendered Original Notes, free and clear of
all liens, restrictions, charges and encumbrances and not subject to any adverse
claim.

     The undersigned further agrees that acceptance of any tendered Original
Notes by Ainsworth and the issuance of Exchange Notes in exchange therefor shall
constitute performance in full by Ainsworth of certain obligations under the
Registration Rights Agreement, dated April 18, 2006, among Ainsworth and the
initial purchaser named therein (the "Registration Rights Agreement"), and
result in Ainsworth having no further obligations or liabilities thereunder.

     The Exchange Offer is subject to certain conditions as set forth in the
Prospectus under the caption "Exchange Offer -- Conditions". The undersigned
recognizes that as a result of these conditions (which may be waived, in whole
or in part, by Ainsworth) as more particularly set forth in the Prospectus,
Ainsworth may not be required to exchange any of the Original Notes tendered
hereby and, in such event, the Original Notes not exchanged will be returned to
the undersigned at the address shown below the signature of the undersigned.

     By tendering, each Holder of Original Notes represents to Ainsworth that
(i) the Exchange Notes acquired pursuant to the Exchange Offer are being
obtained in the ordinary course of business of the person receiving such
Exchange Notes, whether or not such person is such Holder, (ii) neither the
Holder nor any such other person has an arrangement or understanding with any
person to participate in the distribution of such Exchange Notes, (iii) if the
Holder is not a broker-dealer or is a broker-dealer but will not receive
Exchange Notes for its own account in exchange for Original Notes, neither the
Holder nor any such other person is engaged in or intends to participate in a
distribution of the Exchange Notes and (iv) neither the Holder nor any such
other person is an "affiliate" of Ainsworth within the meaning of Rule 405 under
the Securities Act, or, if such Holder is such an "affiliate", such Holder will
comply with the registration and prospectus delivery requirements of the
Securities Act to the extent applicable. If the tendering Holder is a
broker-dealer (whether or not such Holder is also an "affiliate" of Ainsworth
within the meaning of Rule 405 under the Securities Act) that will receive
Exchange Notes for its own account in exchange for Original Notes, it represents
that the Original Notes to be exchanged for the Exchange Notes were acquired by
it as a result of market-making activities or other trading activities, and
acknowledges that it will deliver a prospectus meeting the requirements of the
Securities Act in connection with any resale of such Exchange Notes. By
acknowledging that it will deliver and by delivering a prospectus meeting the
requirements of the Securities Act in connection with any resale of such
Exchange Notes, the undersigned is not deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.

     The Securities and Exchange Commission (the "SEC") has taken the position
that such broker-dealers may fulfill their prospectus delivery requirements with
respect to the Exchange Notes (other than a resale of Exchange Notes received in
exchange for an unsold allotment from the original sale of the Original Notes)
with the Prospectus. The Prospectus, as it may be amended or supplemented from
time to time, may be used by certain broker-dealers (as specified in the
Registration Rights Agreement referenced in the Prospectus) ("Participating
Broker-Dealers") in connection with the sale or transfer of such Exchange Notes
for a period of time starting on the Expiration Date and ending on the close of
business 90 days after the Expiration Date. Ainsworth has agreed that, for such
period of time, it will make the Prospectus (as it may be amended or

<PAGE>

supplemented) available to such a broker-dealer which elects to exchange
Original Notes, acquired for its own account as a result of market making or
other trading activities, for Exchange Notes pursuant to the Exchange Offer for
use in connection with any resale of such Exchange Notes. By accepting the
Exchange Offer, each broker-dealer that receives Exchange Notes pursuant to the
Exchange Offer acknowledges and agrees to notify Ainsworth prior to using the
Prospectus in connection with the sale or transfer of Exchange Notes and that,
upon receipt of notice from the Company of the happening of any event which
makes any statement in the Prospectus untrue in any material respect or which
requires the making of any changes in the Prospectus in order to make the
statements therein (in light of the circumstances under which they were made)
not misleading, such broker-dealer will suspend use of the Prospectus until (i)
Ainsworth has amended or supplemented the Prospectus to correct such
misstatement or omission and (ii) either Ainsworth has furnished copies of the
amended or supplemented Prospectus to such broker-dealer or, if Ainsworth has
not otherwise agreed to furnish such copies and declines to do so after such
broker-dealer so requests, such broker-dealer has obtained a copy of such
amended or supplemented Prospectus as filed with the SEC. Except as described
above, the Prospectus may not be used for or in connection with an offer to
resell, a resale or any other retransfer of Exchange Notes. A broker-dealer that
acquired Original Notes in a transaction other than as part of its market-making
activities or other trading activities will not be able to participate in the
Exchange Offer.

     The undersigned acknowledges that this Exchange Offer is being made in
reliance on interpretations by the staff of the SEC, as set forth in no-action
letters issued to third parties, that the Exchange Notes issued pursuant to the
Exchange Offer in exchange for the Original Notes may be offered for resale,
resold and otherwise transferred by Holders thereof (other than any such Holder
that is a broker-dealer or an "affiliate" of the Company within the meaning of
Rule 405 under the Securities Act), without compliance with the registration and
prospectus delivery provisions of the Securities Act, provided that such
Exchange Notes are acquired in the ordinary course of such Holder's business, at
the time of commencement of the Exchange Offer such Holder has no arrangement or
understanding with any person to participate in a distribution of such Exchange
Notes, and such Holder is not engaged in, and does not intend to engage in, a
distribution of such Exchange Notes. The SEC has not considered the Exchange
Offer in the context of a no-action letter, however, and there can be no
assurance that the staff of the SEC would make a similar determination with
respect to the Exchange Offer as in other circumstances.

     For purposes of the Exchange Offer, Ainsworth shall be deemed to have
accepted validly tendered Original Notes when, as and if Ainsworth has given
oral or written notice thereof to the Exchange Agent and complied with the
applicable provisions of the Registration Rights Agreement. If any tendered
Original Notes are not accepted for exchange pursuant to the Exchange Offer for
any reason or if Original Notes are submitted for a greater principal amount
than the Holder desires to exchange, such unaccepted or non-exchanged Original
Notes will be returned without expense to the tendering Holder thereof (or, in
the case of Original Notes tendered by book-entry transfer into the Exchange
Agent's account at DTC pursuant to customary book-entry transfer procedures,
such non-exchanged Original Notes will be credited to an account maintained with
DTC as promptly as practicable after the expiration or termination of the
Exchange Offer).

     The undersigned will, upon request, execute and deliver any additional
documents deemed by Ainsworth to be necessary or desirable to complete the sale,
assignment and transfer of the Original Notes tendered hereby.

     All authority conferred or agreed to be conferred by this Letter of
Transmittal shall survive the death, incapacity or dissolution of the
undersigned and every obligation under this Letter of Transmittal shall be
binding upon the undersigned's heirs, personal representatives, successors,
assigns, executors and administrators.

     The undersigned understands that tenders of Original Notes pursuant to the
instructions hereto will constitute a binding agreement between the undersigned
and Ainsworth upon the terms and subject to the conditions of the Exchange
Offer.

     Unless otherwise indicated under "Special Issuance Instruction", please
issue the certificates representing the Exchange Notes issued in exchange for
the Original Notes accepted for exchange and return any Original Notes not
tendered or not exchanged, in the name(s) of the undersigned (or in either such
event in the case of Original Notes tendered by DTC, by credit to the account at
DTC). Similarly, unless otherwise indicated under "Special Delivery
Instructions", please send the certificates representing the Exchange Notes
issued in exchange for the Original Notes accepted for exchange and any
certificates for Original Notes not tendered or not exchanged (and accompanying
documents as appropriate) to the undersigned at the address shown below the
undersigned's signatures, unless, in either event, tender is being made through

<PAGE>

DTC. In the event that both "Special Issuance Instructions" and "Special
Delivery Instructions" are completed, please issue the certificates representing
the Exchange Notes issued in exchange for the Original Notes accepted for
exchange and return any Original Notes not tendered or not exchanged in the
name(s) of, and send said certificates to, the person(s) so indicated. The
undersigned recognizes that Ainsworth has no obligation pursuant to the "Special
Issuance Instructions" and "Special Delivery Instructions" to transfer any
Original Notes from the name of the registered Holder(s) thereof if Ainsworth
does not accept for exchange any of the Original Notes so tendered.

     THE UNDERSIGNED, BY COMPLETING THE BOX ENTITLED "DESCRIPTION OF ORIGINAL
NOTES" ABOVE AND SIGNING THIS LETTER OF TRANSMITTAL, WILL BE DEEMED TO HAVE
TENDERED THE ORIGINAL NOTES AS SET FORTH IN SUCH BOX ABOVE.

     PLEASE READ THIS ENTIRE LETTER OF TRANSMITTAL CAREFULLY BEFORE COMPLETING
ANY BOX ABOVE.

<PAGE>

                                PLEASE SIGN HERE

 (TO BE COMPLETED BY HOLDERS OF ORIGINAL NOTES TENDERING PHYSICAL CERTIFICATES)

This Letter of Transmittal must be signed by the Holder(s) of Original Notes
exactly as their name(s) appear(s) on certificate(s) for Original Notes or by
person(s) authorized to become registered Holder(s) by endorsements and
documents transmitted with this Letter of Transmittal. If signature is by a
trustee, executor, administrator, guardian, attorney-in-fact, officer or other
person acting in a fiduciary or representative capacity, such person must set
forth his or her full title below under "Capacity" and submit evidence
satisfactory to Ainsworth of such person's authority to so act. See Instruction
3 herein. If the signature appearing below is not of the registered Holder(s) of
the Original Notes, then the registered Holder(s) must sign a valid proxy.


X                                       Date:
  -----------------------------------         ----------------------------------


X                                       Date:
  -----------------------------------         ----------------------------------
     Signature(s) of Holder(s) or
        Authorized Signatory

Name(s):                                Address:
         ----------------------------            -------------------------------

-------------------------------------   ----------------------------------------
            (Please Print)                        (Including ZIP Code)

Capacity(ies):                          Area Code and
               ----------------------   Telephone No.:
                                                       -------------------------

Taxpayer Identification or Social Security No(s).:
                                                   -----------------------------

                 SIGNATURE GUARANTEE (SEE INSTRUCTION 3 HEREIN)
        CERTAIN SIGNATURES MUST BE GUARANTEED BY AN ELIGIBLE INSTITUTION

________________________________________________________________________________
             (Name of Eligible Institution Guaranteeing Signatures)

________________________________________________________________________________
    (Address (including zip code) and Telephone Number (including area code)
                                    of Firm)


________________________________________________________________________________
                             (Authorized Signature)

________________________________________________________________________________
                                 (Printed Name)

________________________________________________________________________________
                                     (Title)

Date: _______________________________


<PAGE>

                            SPECIAL ISSUANCE INSTRUCTIONS
                             (SEE INSTRUCTION 4 HEREIN)

To be completed ONLY if certificates for Original Notes in a stated amount at
maturity not tendered are to be issued in the name of, or the Exchange Notes
issued pursuant to the Exchange Offer are to be issued to the order of, someone
other than the person or persons whose signature(s) appear(s) within this Letter
of Transmittal or issued to an address different from that shown in the box
entitled "Description of Original Notes" within this Letter of Transmittal.

Name: _______________________________
               (Please Print)

Address: ____________________________
               (Please Print)

_____________________________________
               Zip Code

 _____________________________________________________________________________
                Taxpayer Identification or Social Security Number
                        (See Substitute Form W-9 herein)

                          SPECIAL DELIVERY INSTRUCTIONS
                           (SEE INSTRUCTION 4 HEREIN)

To be completed ONLY if certificates for Original Notes in a stated amount at
maturity not tendered or not accepted for purchase or the Exchange Notes issued
pursuant to the Exchange Offer are to be sent to someone other than the person
or persons whose signature(s) appear(s) within this Letter of Transmittal or to
an address different from that shown in the box entitled "Description of
Original Notes" within this Letter of Transmittal.

Name: _______________________________
               (Please Print)

Address: ____________________________
               (Please Print)

_____________________________________
               Zip Code

_____________________________________________________________________________
                Taxpayer Identification or Social Security Number
                        (See Substitute Form W-9 herein)

IMPORTANT: UNLESS GUARANTEED DELIVERY PROCEDURES ARE COMPLIED WITH, THIS LETTER
OR A FACSIMILE HEREOF (TOGETHER WITH THE CERTIFICATES FOR ORIGINAL NOTES OR A
BOOK-ENTRY CONFIRMATION AND ALL OTHER REQUIRED DOCUMENTS) MUST BE RECEIVED BY
THE EXCHANGE AGENT PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION
DATE.

<PAGE>

INSTRUCTIONS

                    FORMING PART OF THE TERMS AND CONDITIONS
                              OF THE EXCHANGE OFFER

1. DELIVERY OF THIS LETTER OF TRANSMITTAL AND CERTIFICATES; GUARANTEED DELIVERY
PROCEDURES. The certificates for the tendered Original Notes (or a confirmation
of a book-entry into the Exchange Agent's account at DTC of all Original Notes
delivered electronically), as well as a properly completed and duly executed
copy of this Letter of Transmittal or a facsimile hereof and any other documents
required by this Letter of Transmittal (unless a Letter of Transmittal is not
required to be delivered because the Original Notes are being tendered by
book-entry transfer) must be received by the Exchange Agent at its address set
forth herein prior to 5:00 p.m., New York City time, on the Expiration Date. The
method of delivery of the tendered Original Notes, this Letter of Transmittal
and all other required documents to the Exchange Agent are at the election and
risk of the Holder and, except as otherwise provided below, the delivery will be
deemed made only when actually received by the Exchange Agent. Instead of
delivery by mail, it is recommended that the Holder use an overnight or hand
delivery service. In all cases, sufficient time should be allowed to assure
timely delivery. Neither this Letter of Transmittal nor Original Notes should be
sent to Ainsworth.

     Holders who wish to tender their Original Notes and (i) whose Original
Notes are not immediately available or (ii) who cannot deliver their Original
Notes, this Letter of Transmittal or any other documents required hereby to the
Exchange Agent prior to the Expiration Date, or who cannot complete the
procedure for book-entry transfer in a timely basis must tender their Original
Notes and follow the guaranteed delivery procedures set forth in the Prospectus.
Pursuant to such procedures: (i) such tender must be made by or through an
Eligible Institution (as defined below); (ii) prior to the Expiration Date, the
Exchange Agent must have received from the Eligible Institution a properly
completed and duly executed Letter of Transmittal (or a facsimile thereof) and a
Notice of Guaranteed Delivery, substantially in the form provided by Ainsworth
(by telegram, telex, facsimile transmission, mail or hand delivery) setting
forth the name and address of the Holder of the Original Notes, the certificate
number or numbers of such Original Notes and the principal amount of Original
Notes tendered, stating that the tender is being made thereby and guaranteeing
that within three New York Stock Exchange trading days after the Expiration
Date, the certificates representing all physically tendered Original Notes, in
proper form for transfer, or a confirmation of book-entry transfer ("Book-Entry
Confirmation"), as the case may be, and any other documents required by the
applicable Letter of Transmittal will be deposited by the Eligible Institution
with the Exchange Agent; and (iii) the certificates for all physically tendered
Original Notes in proper form for transfer, or a Book-Entry Confirmation, and
all other documents required by this Letter of Transmittal are received by the
Exchange Agent within two New York Stock Exchange trading days after the date of
execution of the Notice of Guaranteed Delivery. Holders of Original Notes who
wish to tender their Original Notes pursuant to the guaranteed delivery
procedures described above must ensure that the Exchange Agent receives the
Notice of Guaranteed Delivery prior to 5:00 p.m., New York City time, on the
Expiration Date.

     All questions as to the validity, form, eligibility (including time of
receipt) and acceptance of Original Notes tendered for exchange will be
determined by Ainsworth, in its sole discretion, which determination shall be
final and binding. Ainsworth reserves the absolute right to reject any and all
tenders of any particular Original Notes not properly tendered or to not accept
any particular Original Notes which acceptance might, in Ainsworth's judgment or
its counsel's judgment, be unlawful. Ainsworth also reserves the absolute right
to waive any defects or irregularities or conditions of the Exchange Offer as to
any particular Original Notes either before or after the Expiration Date
(including the right to waive the ineligibility of any Holder who seeks to
tender Original Notes in the exchange offer). The interpretation of the terms
and conditions of the Exchange Offer as to any particular Original Notes either
before or after the Expiration Date (including the instructions in this Letter
of Transmittal) by Ainsworth shall be final and binding on all parties. Unless
waived, any defects or irregularities in connection with tenders of Original
Notes for exchange must be cured within such reasonable period of time as
Ainsworth shall determine. Neither Ainsworth, the Exchange Agent nor any other
person shall be under any duty to give notification of any defect or
irregularity with respect to any tender of Original Notes for exchange, nor
shall any of them incur any liability for failure to give such notification.
Tenders of Original Notes will not be deemed to have been made until such
defects or irregularities have been cured or waived. Original Notes not validly
tendered will be returned without cost by the Exchange Agent to the tendering
Holders of Original Notes, unless otherwise provided in this Letter of
Transmittal, as soon as practicable following the Expiration Date.

<PAGE>

2. PARTIAL TENDERS; WITHDRAWALS. If less than all Original Notes are tendered,
the tendering Holder should fill in the number of Original Notes tendered in the
third column of the chart entitled "Description of Original Notes". All Original
Notes delivered to the Exchange Agent will be deemed to have been tendered
unless otherwise indicated. If not all Original Notes are tendered, Original
Notes for the aggregate principal amount of Original Notes delivered to the
Exchange Agent will be deemed to have been tendered unless otherwise indicated.
If not all Original Notes are tendered, a certificate or certificates
representing Exchange Notes issued in exchange of any Original Notes tendered
and accepted will be sent to the Holder at his or her registered address, unless
a different address is provided in the appropriate box in this Letter of
Transmittal or unless tender is made through DTC, promptly after the Original
Notes are accepted for exchange.

     Tenders of Original Notes may be withdrawn at any time prior to the
Expiration Date. For a withdrawal to be effective, a written notice of
withdrawal must be received by the Exchange Agent at the address set forth in
this Letter of Transmittal. Any such notice of withdrawal must specify the name
of the person having tendered the Original Notes to be withdrawn, identify the
Original Notes to be withdrawn (including the principal amount of such Original
Notes), and (where certificates for Original Notes have been transmitted)
specify the name in which such Original Notes are registered, if different from
that of the withdrawing Holder. If certificates for Original Notes have been
delivered or otherwise identified to the Exchange Agent then, prior to the
release of such certificates, the withdrawing Holder must also submit the serial
numbers of the particular certificates to be withdrawn and a signed notice of
withdrawal with signatures guaranteed by an Eligible Institution unless such
Holder is an Eligible Institution. If Original Notes have been tendered pursuant
to the procedure for book-entry transfer, any notice of withdrawal must specify
the name and number of the account at DTC to be credited with the withdrawn
Original Notes and otherwise comply with the procedures of such facility. All
questions as to the validity, form and eligibility (including time of receipt)
of such notices will be determined by Ainsworth in its sole discretion, which
determination shall be final and binding on all parties. Any Original Notes so
withdrawn will be deemed not to have been validly tendered for exchange for
purposes of the Exchange Offer. Any Original Notes which have been tendered for
exchange but which are not exchanged for any reason will be returned to the
Holder thereof without cost to such Holder (or, in the case of Original Notes
tendered by book-entry transfer into the Exchange Agent's account at DTC
pursuant to the relevant book-entry transfer procedures, such Original Notes
will be credited to an account maintained with DTC for the Original Notes) as
soon as practicable after withdrawal, rejection of tender or termination of the
exchange offer. Properly withdrawn Original Notes may be retendered by following
the procedures for tendering Original Notes set out in this Letter of
Transmittal at any time prior to the Expiration Date.

3. SIGNATURE ON THE LETTER OF TRANSMITTAL; BOND POWER AND ENDORSEMENTS;
GUARANTEE OF SIGNATURES. If this Letter of Transmittal (or a copy hereof) is
signed by the registered Holder or Holders of the Original Notes tendered
hereby, the signature must correspond with the name or names as written on the
face of the Original Notes without alteration, enlargement or any change
whatsoever.

     If this Letter of Transmittal (or a copy hereof) is signed by the
registered Holder or Holders of Original Notes tendered and the certificate or
certificates for Exchange Notes issued in exchange therefor is to be issued (or
any untendered number of Original Notes is to be reissued) to the registered
Holder, such Holder need not and should not endorse any tendered Original Note,
nor provide a separate bond power. In any other case, such Holder must either
properly endorse the Original Notes tendered or transmit a properly completed
separate bond power with this Letter of Transmittal, with the signature on the
endorsement or bond power guaranteed by an Eligible Institution.

     If Original Notes are registered in the name of a person other than a
signor of this Letter of Transmittal, the Original Notes surrendered for
exchange must be endorsed by, or be accompanied by, a written instrument or
instruments of transfer or exchange in satisfactory form as determined by
Ainsworth in its sole discretion, duly executed by the registered Holder with
the signature thereon guaranteed by an Eligible Institution.

     If this Letter of Transmittal or any Original Notes or powers of attorney
are signed by trustees, executors, administrators, guardians, attorney-in-fact,
officers of corporations or others acting in a fiduciary or representative
capacity, such persons should so indicate when signing, and, unless waived by
Ainsworth, proper evidence satisfactory to Ainsworth of their authority to so
act must be submitted.

     Endorsements on Original Notes or signatures on bond powers required by
this Instruction 3 must be guaranteed by an Eligible Institution.

<PAGE>

     Signatures on this Letter of Transmittal or a notice of withdrawal, as the
case may be, must be guaranteed unless the Original Notes surrendered for
exchange pursuant thereto are tendered (i) by a registered Holder who has not
completed the box entitled "Special Issuance Instructions" on this Letter of
Transmittal or (ii) for the account of an Eligible Institution (as defined
below). In the event that signatures on this Letter of Transmittal or a notice
of withdrawal, as the case may be, are required to be guaranteed, such
guarantees must be made by a firm which is a member of a registered national
securities exchange or a member of the National Association of Securities
Dealers, Inc. or by a commercial bank or trust company having an office or
correspondent in the United States or which is otherwise an "eligible guarantor
institution" within the meaning of Rule 17Ad-15 under the United States
Securities Exchange Act of 1934, as amended (the "Exchange Act") (collectively,
"Eligible Institutions").

4. SPECIAL ISSUANCE AND DELIVERY INSTRUCTIONS. Tendering Holders should include,
in the applicable spaces, the name and address to which Exchange Notes or
substitute Original Notes for principal amount not tendered or not accepted for
exchange are to be sent, if different from the name and address of the person
signing this Letter of Transmittal (or in the case of tender of the Original
Notes through DTC, if different from the account maintained at DTC). In the case
of issuance in a different name, the taxpayer identification or social security
number of the person named must also be indicated.

5. TRANSFER TAXES. Ainsworth shall pay all transfer taxes, if any, applicable to
the exchange of Original Notes pursuant to the Exchange Offer. If, however,
certificates representing Exchange Notes, or Original Notes for principal
amounts at maturity not tendered or accepted for exchange, are to be delivered
to, or are to be issued in the name of, any person other than the registered
Holder of the Original Notes tendered hereby, or if a transfer tax is imposed
for any reason other than the exchange of Original Notes pursuant to the
Exchange Offer, then the amount of any such transfer taxes (whether imposed on
the registered Holder or any other person) will be payable by the tendering
Holder. If satisfactory evidence of payment of such taxes or exemption therefrom
is not submitted herewith, the amount of such transfer taxes will be billed
directly to such tendering Holder.

     Except as provided in this Instruction 5, it will not be necessary for
transfer tax stamps to be affixed to the Original Notes listed in this Letter of
Transmittal.

6. WAIVER OF CONDITIONS. Ainsworth reserves the absolute right to amend, waive
or modify, in whole or in part, any of the conditions to the Exchange Offer set
forth in the Prospectus.

7. MUTILATED, LOST, STOLEN OR DESTROYED NOTES. Any Holder whose Original Notes
have been mutilated, lost, stolen or destroyed should contact the Exchange Agent
at the address indicated above for further instructions.

8. REQUESTS FOR ASSISTANCE OR ADDITIONAL COPIES. Questions relating to the
procedure for tendering, as well as requests for additional copies of the
Prospectus and this Letter of Transmittal, may be directed to the Exchange Agent
at the address and telephone number set forth above. In addition, all questions
relating to the Exchange Offer, as well as requests for assistance or additional
copies of the Prospectus and this Letter of Transmittal, may be directed to the
Exchange Agent at the address specified in the Prospectus.

9. IRREGULARITIES. All questions as to the validity, form, eligibility
(including time of receipt), and acceptance of Letters of Transmittal or
Original Notes will be resolved by Ainsworth, whose determination will be final
and binding. Ainsworth reserves the absolute right to reject any or all Letters
of Transmittal or tenders that are not in proper form or the acceptance of which
would, in the opinion of Ainsworth's counsel, be unlawful. Ainsworth also
reserves the right to waive any irregularities or conditions of tender as to the
particular Original Notes covered by any Letter of Transmittal or tendered
pursuant to such Letter of Transmittal. None of Ainsworth, the Exchange Agent or
any other person will be under any duty to give notification of any defects or
irregularities in tenders or incur any liability for failure to give any such
notification. Ainsworth's interpretation of the terms and conditions of the
Exchange Offer shall be final and binding.

10. NO CONDITIONAL TENDERS. No alternative, conditional, irregular or contingent
tenders will be accepted. All tendering Holders of Original Notes, by execution
of this Letter of Transmittal, shall waive any right to receive notice of the
acceptance of their Original Notes for exchange.

<PAGE>

11. DEFINITIONS. Capitalized terms used in this Letter of Transmittal and not
otherwise defined have the meanings given in the Prospectus.

     IMPORTANT: THIS LETTER OF TRANSMITTAL OR A FACSIMILE THEREOF (TOGETHER WITH
CERTIFICATES FOR ORIGINAL NOTES AND ALL OTHER REQUIRED DOCUMENTS) OR A NOTICE OF
GUARANTEED DELIVERY MUST BE RECEIVED BY THE EXCHANGE AGENT ON OR PRIOR TO THE
EXPIRATION DATE (UNLESS THE ORIGINAL NOTES ARE TENDERED BY BOOK-ENTRY TRANSFER,
IN WHICH CASE THE TENDER OF ORIGINAL NOTES MUST BE EFFECTED IN ACCORDANCE WITH
THE PROCEDURES MANDATED BY DTC'S ATOP ON OR PRIOR TO THE EXPIRATION DATE).

<PAGE>

                            IMPORTANT TAX INFORMATION

     The Holder is required to give the Exchange Agent the social security
number or employer identification number of the Holder. If the Notes are in more
than one name or are not in the name of the actual owner, consult the enclosed
Guidelines for Certification of Taxpayer Identification Number on Substitute
Form W-9 for additional guidance on which number to report.

           TO BE COMPLETED BY HOLDERS TENDERING PHYSICAL CERTIFICATES

PAYORS NAME: AINSWORTH LUMBER CO. LTD.

<TABLE>
<S>                       <C>
SUBSTITUTE                Please fill out your name and address below:
FORM W-9
DEPARTMENT OF THE         Name: ________________________________________________
TREASURY
INTERNAL REVENUE          Address (Number and street): _________________________

SERVICE                   ______________________________________________________

                          City, State and Zip Code: ____________________________

                          ______________________________________________________

PAYER'S REQUEST FOR       PART 1 -- PLEASE PROVIDE YOUR         ________________
TAXPAYER IDENTIFICATION   TIN IN THE BOX AT RIGHT AND CERTIFY   Social Security
NUMBER (TIN)              BY SIGNING AND DATING BELOW                Number

                                                                OR

                                                                ________________
                                                                    Employer
                                                                Identification
                                                                     Number

                                                                PART 3 --
                          PART 2 -- CERTIFICATION -- UNDER
                          PENALTIES OF PERJURY, I CERTIFY       Awaiting
                          THAT: (1) The number shown on this    TIN      [ ]
                          form is my correct Taxpayer
                          Identification Number (or I am        Exempt   [ ]
                          waiting for a number to be issued
                          to me) and (2) I am not subject to
                          backup withholding either because
                          (a) I am exempt from backup
                          withholding; or (b) I have not been
                          notified by the Internal Revenue
                          Service (the "IRS") that I am
                          subject to backup withholding as a
                          result of failure to report all
                          interest and dividends, or (c) the
                          IRS has notified me that I am no
                          longer subject to backup
                          withholding.

CERTIFICATION INSTRUCTIONS -- You must cross out item (2) above if you have been
notified by the IRS that you are subject to backup withholding because of
under-reporting interest or dividends on your tax return. However, if after
being notified by the IRS that you were subject to backup withholding you
received another notification from the IRS stating that you are no longer
subject to backup withholding, do not cross out item (2). If you are exempt from
backup withholding, check the applicable box in Part 3.


SIGNATURE                               DATE
          ---------------------------        -----------------------------------

NAME (Please Print)
                    ------------------------------------------------------------

ADDRESS (Number and street)
                            ----------------------------------------------------

                            City, State and Zip Code

          ----------------------------------------------------------------
</TABLE>

NOTE: FAILURE TO COMPLETE AND RETURN THIS FORM MAY RESULT IN BACKUP WITHHOLDING
     OF 31 PERCENT OF ANY PAYMENTS MADE TO YOU UNDER THE NOTES. PLEASE REVIEW
     THE ENCLOSED GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION NUMBER
     ON SUBSTITUTE FORM W-9 FOR ADDITIONAL DETAILS.


<PAGE>

YOU MUST COMPLETE THE FOLLOWING CERTIFICATE IF YOU CHECKED THE APPLICABLE BOX IN
PART 3 OF SUBSTITUTE FORM W-9.

             CERTIFICATE OF AWAITING TAXPAYER IDENTIFICATION NUMBER

I certify under penalties of perjury that a taxpayer identification number has
not been issued to me, and either (a) I have mailed or delivered an application
to receive a taxpayer identification number to the appropriate Internal Revenue
Service Center or Social Security Administration Office or (b) I intend to mail
or deliver an application in the near future. I understand that if I do not
provide a taxpayer identification number to the payor by the time of payment,
31% of all reportable payments made to me will be withheld until I provide a
number and that, if I do not provide my taxpayer identification number within 60
days, such retained amounts shall be remitted to the IRS as backup withholding.


--------------------------------------   ---------------------------------------
Signature                                Date

IMPORTANT: THIS LETTER OF TRANSMITTAL (TOGETHER WITH CERTIFICATES FOR ORIGINAL
NOTES AND ALL OTHER REQUIRED DOCUMENTS) OR A NOTICE OF GUARANTEED DELIVERY MUST
BE RECEIVED BY THE EXCHANGE AGENT ON OR PRIOR TO 5:00 P.M., NEW YORK CITY TIME,
ON THE EXPIRATION DATE.

                          (DO NOT WRITE IN SPACE BELOW)

<TABLE>
<CAPTION>
CERTIFICATE SURRENDERED   ORIGINAL NOTES TENDERED   ORIGINAL NOTES ACCEPTED
-----------------------   -----------------------   -----------------------
<S>                       <C>                       <C>

Delivery Prepared
by ____________________   Checked by ____________   Date __________________
</TABLE>