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<div><tt><font color="#000000">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</font></tt></div>
<div><tt><font color="#000000"><br></font></tt></div>
<div><tt><font color="#000000">(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)</font></tt></div>
<div><tt><font color="#000000"><br></font></tt></div>
<div><tt><font color="#000000">m.</font></tt></div>
<div><tt><font color="#000000">******</font></tt></div>
<div><tt><font color="#000000">Potlatch Announces Results of Land
Value Stratification Analysis<br>
Company identifies 250,000-300,000 acres of land with higher values
than timberland<br>
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.<br>
<br>
"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."<br>
<br>
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.<br>
<br>
"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.<br>
<br>
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.<br>
<br>
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.<br>
<br>
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.</font></tt></div>
<div><tt><font color="#000000"><br>
SOURCE: Potlatch Corporation<br>
<br>
Potlatch Corporation<br>
(Media)<br>
Mark J. Benson<br>
509.835.1513<br>
or<br>
(Investors)<br>
Douglas D. Spedden<br>
509.835.1549</font></tt><br>
<tt><font color="#000000"></font></tt></div>
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