Norbord Files Final Prospectus For CAD$240 Million Rights Offering

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    Note: Financial references in US dollars unless otherwise indicatedTORONTO, Nov. 17, 2008 /CNW/ - Norbord Inc. (TSX:NBD) announced today
that it has filed a final short form prospectus in relation to its previously
announced rights offering (the "Offering"). Gross proceeds under the Offering
will be approximately CAD$240 million.
    The final prospectus along with the rights certificates will be mailed to
eligible shareholders beginning on or about December 1, 2008. Registered
shareholders wishing to exercise their Rights must forward the completed
Rights certificates, along with the applicable funds to CIBC Mellon Trust
Company by December 22, 2008 (the "Expiry Date"). Shareholders who own their
shares through an intermediary, such as a bank, trust company, securities
dealer or broker, will receive materials and instructions from their
intermediary.
    Under the amended terms of the Offering, shareholders of record on
November 27, 2008 will receive one Right for each common share held. Each
Right will entitle the holder to purchase 1.81 Units at the price of CAD$0.88
per Unit. Each Unit will be comprised of one common share and one half of a
common share purchase warrant ("Warrant"). Each whole Warrant will entitle the
holder to purchase one common share at a price of CAD$1.36 at any time over
the five years following the Expiry Date. Purchase of the Units must be
completed by 5:00 p.m. (Toronto time) on the Expiry Date. Shareholders who
fully exercise their Rights are entitled to subscribe pro-rata for additional
Units, if available, that were not subscribed for initially on or before the
Expiry date.
    Brookfield Asset Management Inc. ("Brookfield") (TSX:BAM; NYSE:BAM), who
has provided a standby purchase commitment in respect of the Offering, has
consented to the final terms of the Offering.
    The common shares of the Company are expected to commence trading on the
TSX on an ex-rights basis at the opening of business on November 25, 2008
meaning that common shares purchased on, or following, that date will not be
entitled to receive the Rights under this Offering. At that time, the Rights
are expected to be posted for trading on the TSX on a "when-issued" basis and
will thereafter trade under the symbol "NBD.RT". Trading of the Rights is
expected to continue until noon (Toronto time) on the Expiry Date. The
Company's common shares trade on the TSX under the symbol "NBD".
    Shareholders should consult the final prospectus and their financial
advisors to determine their rights and entitlements under the Offering.
    This press release should be read together with, and is qualified in its
entirety by, the more detailed information contained in the final short form
prospectus.
    This news release does not constitute an offer to sell or the
solicitation of an offer to buy these securities. Securities may not be
offered or sold in the United States absent registration or an exemption from
registration under the United States Securities Act of 1933, as amended. The
Company does not intend to register any portion of this offering in the United
States.

    Norbord Profile

    Norbord Inc. is an international producer of wood-based panels with
assets of $1.1 billion, employing approximately 2,700 people at 15 plant
locations in the United States, Europe and Canada. Norbord is one of the
world's largest producers of oriented strand board (OSB). In addition to OSB,
Norbord manufactures particleboard, medium density fibreboard (MDF), hardwood
plywood and related value-added products. Norbord is a publicly traded company
listed on the Toronto Stock Exchange under the symbol NBD.

    This news release contains forward-looking statements, as defined in
applicable legislation. Often, but not always, words such as "will be,"
"will," "are expected to" and other expressions which are predictions of or
indicate future events, trends or prospects and which do not relate to
historical matters identify forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Norbord to
be materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements.
    Although Norbord believes it has a reasonable basis for making these
forward-looking statements, readers are cautioned not to place undue reliance
on such forward-looking information. By its nature, forward-looking
information involves numerous assumptions, inherent risks and uncertainties,
both general and specific, which contribute to the possibility that the
predictions, forecasts and other forward-looking statements will not occur.
Factors that could cause actual results to differ materially from those
contemplated or implied by forward-looking statements include: general
economic conditions; risks inherent with product concentration; effects of
competition and product pricing pressures; risks inherent with customer
dependence; effects of variations in the price and availability of
manufacturing inputs; risks inherent with a capital intensive industry; and
other risks and factors described from time to time in filings with Canadian
securities regulatory authorities.
    Except as required by applicable laws, Norbord does not undertake to
update any forward-looking statements, whether as a result of new information,
future events or otherwise, or to publicly update or revise the above list of
factors affecting this information. See the "Caution Regarding Forward-Looking
Information" statement in the March 1, 2008 Annual Information Form and the
cautionary statement contained in the "Forward-Looking Statements" section of
the 2007 Management's Discussion and Analysis dated January 31, 2008.

For further information: Anita Veel, Director, Corporate & Regulatory
Affairs, [phone], [e-mail]