Forest Stewardship Council (FSC) -- US Certifies Potlatch's 319,000 Acres of Minnesota Forestland

"Minnesota's natural resources are a fundamental part of ourquality of life and it is our responsibility to be good stewards ofthose resources," Governor Tim Pawlenty said in a letter to thecompany. "Potlatch's milestone conservation achievements highlightMinnesota's national leadership and our vision for long-termprotection and the proper management of our unique natural resources."

FSC President Roger Dower also noted, "In addition to Potlatch'sforest management certification of their own land, the current andprojected certifications of substantial amounts of public lands inMinnesota will extend the company's ability to supply FSC-labeledproducts to consumers," he said. Potlatch Bemidji's lumber millpurchases timber from the state and counties.

Potlatch Chairman and Chief Executive Officer Penn Siegel receiveddocumentation of the certification during ceremonies at the Universityof Minnesota's St. Paul campus from Dave Bubser, USA Manager forSmartWood, FSC's registered certifier. In presenting the certificates,Bubser noted, "With the FSC certification of their 319,000 acres ofMinnesota forestlands as the final step in achieving certification fortheir entire 1.5 MM acre land base, Potlatch has placed themselvesamong the vanguard of industrial timber companies in the UnitedStates. Our audit of Potlatch makes it clear that Potlatch has fullyintegrated the FSC standards into their core operating systems and hastruly embraced the value of responsible stewardship. Potlatch hasclearly distinguished itself as a leader among their peers, bothregionally and nationally," he concluded.

Siegel stressed that the Minnesota FSC certifications representyet another link in a chain of commitments to third-party oversight ofthe company's management practices. "With today's announcement,Potlatch's management practices on its entire forestland ownership isthird-party certified under FSC and the Sustainable ForestryInitiative(R) (SFI), while our internal Environmental ManagementSystem (EMS) is certified to the International Organization forStandardization's (ISO) 14001 standards," he stated. He added thatthird-party certification demonstrates a commitment to stewardshippublicly in ways that can benefit Potlatch shareholders as well associety and the environment. "In addition, with the chain of custodycertification of our Bemidji mill nearly all of our lumber and plywoodmanufacturing facilities are FSC chain-of-custody certified andauthorized to market products with the FSC label," he continued.

Robert Hrubes, Senior Vice President of Scientific CertificationSystems (SCS) noted, "SCS is very pleased to help commemorate theaccomplishment of Potlatch's company-wide FSC certification goal.Beginning with our certifications of Potlatch's Hybrid Poplaroperations in Oregon, in 2001, and the Idaho Resource ManagementDivision in 2003, Potlatch Corporation has now achieved the higheststandard of independent forest management certification for all of itsforest operations. With this company-wide accomplishment, Potlatch hasdemonstrated to the entire forest products industry that publiclytraded companies can practice exemplary forestry and, by doing so, cansuccessfully engage the FSC."

"While FSC certification is a logical extension of Potlatch'shistorical commitment to sound stewardship, we believe it willcontribute significantly to our strategy of employing third-partycertification to add to shareholder value," Siegel said. "I wouldfirst note that the process of becoming certified makes us better landmanagers. Our foresters, some of who are here today, will tell youthat the audits we undergo are rigorous, requiring us to be moredemanding of ourselves and make continuous improvements in ourpractices and our knowledge of our resources. As a result, not onlyare our lands managed better from an environmental perspective, theyare also more productive. As we have gained knowledge, we haveimproved our harvesting practices, which in turn have helped controlcosts while increasing output," he explained.

Siegel added, "There appears to be a growing trend among largebuilding products retailers, secondary manufacturers, architects,contractors and governments at all levels toward preferences forcertified products, including FSC-certified products. The company'sthird-party certifications also continue to be instrumental insecuring public and private support for cooperative conservationeasements, which produce additional value for Potlatch shareholderswhile securing public access to the land and assuring propermanagement. Siegel explained that such easements are secured with theadvice and partnership of conservation groups, including the Trust forPublic Lands, The Conservation Fund and The Nature Conservancy."

"The Trust for Public Land is proud to work with PotlatchCorporation in Minnesota and elsewhere to protect our state's workingforests," said Cynthia Whiteford, Regional Director for the Trust forPublic Land. "Potlatch's Forest Stewardship Council certification isan even further commitment to manage the lands at the highest level ofsustainability," added Whiteford. "The company's commitment tosustainability serves the interest of the community and supports TPL'smission of protecting land for people."

TPL and Potlatch are in the process of protecting nearly 5,000acres in the Brainerd area through the Forest Legacy Program. Aworking forest easement will allow these lands to be harvestedsustainably while also giving the public access for hunting, hikingand other passive outdoor recreation. This will be the largest exampleof the use of this conservation tool to date in Minnesota.

"The Conservation Fund applauds Potlatch for its commitment tosustaining Minnesota's working forests. This effort demonstrates abalanced approach to forestry that integrates environmental andeconomic objectives for land and water resources worthy of futuregenerations," stated Tom Duffus, MN/WI State Director for TheConservation Fund (TCF). Potlatch is currently working with TCF tofacilitate purchase of a portion of Potlatch lands to expand Crow WingState Park.

The Potlatch Chief Executive Officer also praised the company'sdedicated resource professionals and foresters in Minnesota andthroughout the company. "In the final analysis, it is our forestryprofessionals, working on the ground, that make it possible for us toearn third party certifications," he said. "It is their commitment tostewardship in the forest that makes the difference," said Siegel.Siegel also extended thanks to conservation and contractororganizations that have endorsed the company's decisions to certifyunder FSC, including several organizations that participated in thepublic presentation of the FSC certificate in Minneapolis. "We aremost grateful to the Forest Stewardship Council and its registeredcertifiers, SmartWood and Scientific Certification Systems. We deeplyappreciate the support and encouragement we've received fromconservation and wildlife interests, particularly the RainforestAlliance, World Wildlife Fund and the National Wildlife Federation, aswell as Trout Unlimited and the Minnesota Deer Hunters Association."

To qualify for FSC certification, Potlatch's management practicesin Minnesota underwent a rigorous audit by SmartWood, the forestcertification arm of the Rainforest Alliance. The findings in theaudit process and Potlatch's willingness to adapt certain practicesresulted in Potlatch being awarded the FSC certification.

For more information on certification, see Potlatch Corporation'swebsite at www.potlatchcorp.com, FSCUS at www.fscus.org, RainforestAlliance/SmartWood at www.rainforest-alliance.org or ScientificCertification Systems at www.scscertified.com.

This news release contains, in addition to historical information,certain forward-looking statements. These forward-looking statementsare based on management's best estimates and assumptions regardingfuture events, and are therefore subject to known and unknown risksand uncertainties and are not guarantees of future performance. Thecompany's actual results could differ materially from those expressedor implied by forward-looking statements. The company disclaims anyintent or obligation to update these forward-looking statements.