Norbord Announcement

New England Wood Pellet, Norbord Announce Purchase and Sale of Deposit NY Property, Plans to Build New Wood Pellet Manufacturing Facility

Jaffrey, NH, USA – New England Wood Pellet LLC (NEWP), a privately-held manufacturer and distributor of wood pellet fuels, and Norbord Inc., a publicly-traded manufacturer of composite wood panel products (TSX:NBD) today announced that they have executed definitive agreements whereby NEWP will acquire Norbord’s Deposit NY land and property and commence construction of a new wood pellet manufacturing facility.

NEWP and Norbord expect to close on the purchase and sale of Norbord’s Deposit NY land and property by November 6, 2009. Terms of the agreement are confidential. Norbord’s intentions are to continue manufacturing of medium-density fiberboard at the facility until sometime before the closing. NEWP will then begin significant site modifications, to include commencement of construction of a 100,000 ton per year state-of-the-art wood pellet manufacturing plant once all state and local permits are secured.

“We are excited to work with Norbord toward the transition of this long-time wood product manufacturing facility to a new and exciting era of renewable biomass fuel manufacturing,” said Steven J. Walker, President and CEO of New England Wood Pellet. “The Deposit plant represents an attractive growth opportunity for our company because of its outstanding location relative to northeastern demand for pellet fuel, its well-established wood supply, its excellent highway and rail access, and its exceptional labor force. We look forward to working closely with Deposit officials and local citizens to ensure a smooth and successful transition.”

The demand for wood pellet fuel is expected to increase in the northeastern US as consumers move toward renewable energy resources, and as state and federal governments enact policies to reduce demand for foreign fossil energy for heating and to promote low carbon energy resources. New stove and boiler technology allows use of pellets fuels to provide very clean, high efficiency heating for residential, commercial and industrial customers. NEWP expects to ship pellet fuel from the Deposit facility both in bags for residential use, and in bulk for central heating of homes, commercial buildings and for industrial process heat.

NEWP currently owns manufacturing plants in Jaffrey NH, the site of its corporate headquarters, and in Schuyler NY. NEWP also owns and operates a rail-based packaging and reload facility in Palmer MA. The company will ship an estimated 155,000 tons in 2009, making it the largest manufacturer and distributor of wood pellet fuels in the northeastern US. A wholly-owned subsidiary, Propell Energy, sells and services large-scale high efficiency wood pellet boilers for municipal and commercial heating.

NEWP also operates a design and fabrication division in Jaffrey NH where plant components are engineered and built. The company has made a significant investment in research and development of pellet manufacturing, materials handling and processing equipment in order to address the many challenges inherent in successful pellet manufacturing. The company currently employs 75 people at its various locations.

NEWP expects to complete construction and commence operation of its Deposit plant sometime in the fourth quarter of 2010. The company expects to reach full production capacity in the first half of 2011. The plant will employ an estimated 20 people, with in-direct employment in wood supply, transportation and retailing of product estimated at over 100 jobs. Construction of the plant will utilize local labor and employ dozens of skilled workers at various points during the 9-12 month construction period. NEWP expects to utilize certain buildings, woodyard equipment and other elements of the existing Norbord facility for its wood pellet manufacturing.

For more information regarding New England Wood Pellet, visit www.pelletheat.com. For more information regarding NEWP’s subsidiary Propell Energy, visit www.propellenergy.com.