[Vision2020] Potlatch liquidation begins

[Mark Solomon]

For those of you who follow the timber industry, the new CEO, CFO and 
VP for Land Sales and Development are all recent hires from Plum 
Creek. Plum Creek, as recently as seven years ago, used to own vast 
swaths of Clearwater basin timber land (the checkerboard). They now 
own no land in Idaho. They've shifted their base of operations to 
Maine where they acquired the International Paper forests which they 
are now in the process of developing as resorts and residential 
properties. This is not good news for the Idaho timber industry or 
the forest

(By the way, the majority of Potlatch lands in Idaho were literally 
stolen by fraud from the public domain. http://www.landgrant.org/ for 
more info)

m.
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Potlatch Announces Results of Land Value Stratification Analysis
Company identifies 250,000-300,000 acres of land with higher values 
than timberland
NEW YORK, Dec 11, 2006 (BUSINESS WIRE) -- Potlatch Corporation (NYSE: 
PCH), a real estate investment trust (REIT), today announced details 
of the company's land stratification analysis during an investor 
webcast and conference call from New York City (webcast replay 
available at www.potlatchcorp.com). Potlatch management presented the 
company's analysis of its lands with higher values than timberland 
and its strategies for land value creation.

"After reorganizing as a REIT earlier this year, we began a process 
of taking a very deep look at all of the values associated with our 
land holdings," said President and Chief Executive Officer Michael J. 
Covey. "Through this intensive land value stratification process, we 
have identified those lands that are non-strategic to our core 
forestland operations. These higher valued forestlands are available 
to be sold over time and the proceeds may be used to fuel the growth 
of the company through acquisitions, or to pay down debt or execute a 
share repurchase program."

Potlatch's entire ownership of 1.5 million acres is located in 
desirable rural and mountain regions across the country. A 
significant portion of Potlatch lands have key attributes that make 
it superior recreational property. Additionally, in keeping with 
Potlatch's long tradition of managing forestland using the highest 
levels of stewardship, our forestlands are third-party certified.

"Potlatch's Idaho land holdings are located in the beautiful 
north-central part of the state, which has long been known for its 
spectacular wilderness, white water rivers, salmon, trout and 
steelhead fishing and big game hunting," said Vice President Land 
Sales and Development William R. DeReu. "Potlatch properties in 
Minnesota are rural, forested and located within a few hours drive 
from Minneapolis and St. Paul. The Arkansas ownership, like 
Minnesota, offers exceptional opportunities for hunting and outdoor 
recreation in a beautiful mixed hardwood and conifer forest," added 
DeReu.

The non-strategic lands identified in each region through the initial 
stratification efforts total approximately 100,000-120,000 acres in 
Idaho, 100,000-120,000 acres in Minnesota and 50,000-60,000 acres in 
Arkansas, or 18-20 percent of the company's current holdings 
nationwide.

Potlatch is a REIT with 1.5 million acres of forestland in Arkansas, 
Idaho, Minnesota and Oregon, and through its taxable REIT subsidiary 
the company also operates 13 manufacturing facilities that produce 
lumber and panel products and bleached pulp products, including 
paperboard and tissue. Potlatch, a verified forest practices leader, 
is committed to providing superior returns to stockholders through 
long-term stewardship of our resources.

This press release contains certain forward-looking statements within 
the meaning of the Private Litigation Reform Act of 1995 as amended, 
including, without limitation, statements regarding land values, 
future land sales and uses of proceeds from land sales. These 
forward-looking statements are based on current expectations, 
estimates, assumptions and projections that are subject to change, 
and actual results may differ materially from the forward-looking 
statements. Factors that could cause actual results to differ 
materially include those risks and uncertainties described from time 
to time in the company's public filings with the Securities and 
Exchange Commission. The company does not undertake to update any 
forward-looking statements.

SOURCE: Potlatch Corporation

Potlatch Corporation
(Media)
Mark J. Benson
509.835.1513
or
(Investors)
Douglas D. Spedden
509.835.1549
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