Press Releases

03.18.09Masonite Receives Interim Court Authorization to Continue Paying Suppliers in the Ordinary Course

Also Receives Authorization To Utilize Its Cash Collateral
To Meet Ongoing Obligations To Suppliers, Employees and Customers

Over $150 Million Cash On Hand As Of March 12, 2009

MISSISSAUGA, ON, March 18, 2009 – Masonite International Inc. (the "Company") today announced that it has received interim court authorization to continue to meet its obligations to trade suppliers on normal terms in the ordinary course of business. The Company also has received court authorization to continue to utilize its cash collateral to help meet its obligations to suppliers, employees and customers. As of March 12, 2009, Masonite had more than $150 million of cash on hand.

"We are very pleased that the U.S. court has granted interim approval for our 'All-Trade Motion,' which allows us to continue to meet our obligations to our trade suppliers for goods and services that they provide to the Company,” said Fred Lynch, President and Chief Executive Officer of Masonite. “We intend to pay our suppliers under customary terms going forward."

Mr. Lynch continued, "Our restructuring plan calls for all trade creditors to be 'unimpaired,' meaning that suppliers would be paid in full. This was a critical issue for us in our negotiations with our secured lenders and bondholders, and we are pleased to note that more than 75 percent of our secured lenders and more than 80 percent of our bondholders have entered into lock-up agreements supporting this plan, which is significantly higher than the 67% required for approval of the plan.

As previously announced, Masonite is moving forward with a debt restructuring plan that has already received strong support from the Company's secured lenders and bondholders. If implemented as proposed, this plan will enable Masonite to reduce its outstanding debt by nearly $2 billion, from $2.2 billion today to up to $300 million upon consummation of the plan, and reduce its annual cash interest costs by approximately $145 million.

In order to implement this restructuring plan, on March 16, 2009, the Company and several affiliated companies, including Masonite International Corporation, voluntarily filed to reorganize under the Companies' Creditors Arrangement Act (CCAA) in Canada in the Ontario Superior Court of Justice. In addition, Masonite International Corporation, Masonite Corporation and all of its U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Wilmington, Delaware. Masonite's subsidiaries and affiliates outside of North America have not initiated reorganization cases and are not expected to be adversely impacted by the legal proceedings.

Masonite’s "First Day Motions" were approved on either a final or interim basis at a hearing in Wilmington on March 17. These included court orders that provide for the continued payment of employee wages and other compensation, reimbursable employee expenses, and medical and other benefits without interruption; the continued payment of supplier invoices on normal terms in the ordinary course of business; the continuation of customer programs; and, the continued use of its cash collateral and cash management systems. The Company has received similar authorization in Canada as well. A hearing at which the Company will seek final U.S. Court approval for the interim orders has been scheduled for April 13, 2009.

Masonite noted that customer programs, such as rebates, incentives and warranties, will continue to remain in effect during the legal proceedings. Under final orders entered by the Court, the Company has the right to pay in full any such valid claims that are due.

Separately, Masonite announced that it is no longer obligated to make filings with the Securities and Exchange Commission, including reports on Form 6-K. Under terms of the Lock Up and Restructuring Agreement executed by holders of more than two-thirds in principal amount of its senior secured obligations and its senior subordinated notes due 2015, Masonite will be a privately held enterprise upon consummation of the proposed plan of reorganization.

This press release is available on the Company's website at www.masonite.com, along with additional information on the restructuring. Suppliers and vendors may also call (888) 830-4646 or send an email to MasoniteInfo@kccllc.com.

About Masonite

Masonite International is a leading global manufacturer of residential and commercial doors, committed to providing the highest value door products to our customers in more than 70 countries around the world.

Forward-looking Statements

This press release and other written reports and oral statements made by the Company may include forward-looking statements, all of which are subject to risks and uncertainties. One can identify these forward-looking statements by their use of words such as "will", "may", "might", "expects", "plans", "would", "estimates", "intends", "forecasts", "projects" and other words of similar meaning, or by the fact that they do not relate strictly to historical or current facts. These statements are likely to address, but may not be limited to, and are subject to factors such as the Company's strategies relating to growth and cost containment, including facility closures, the Company's negotiations with lenders under its senior secured credit agreement, actions that may be taken by its noteholders, the uncertainties and delays associated with court proceedings, the Company's future operations; the Company's ability to get support for its restructuring plan, and ongoing conditions in the door manufacturing and housing industries. Readers must carefully consider any such statements and should understand that many factors could cause actual results and developments to differ materially from the Company's forward-looking statements. These factors may include inaccurate assumptions and a broad variety of other known and unknown risks and uncertainties, including: general economic, market and business conditions; levels of construction and renovation activity; competition; financing risks; ability to manage expanding operations; commitments; new services; retention of key management personnel; environmental and other government regulation; and other factors disclosed by the Company in its filings from time to time with the United States Securities and Exchange Commission.

No forward-looking statement can be guaranteed and actual future results may vary materially. Therefore, we caution you not to place undue reliance on our forward-looking statements. The Company disclaims any responsibility to update these forward-looking statements, whether as a result of new information, future events or otherwise.