Forest Stewardship Council -- US Certifies Potlatch Corporation's 473

    Business Editors/Environment Writers

    LITTLE ROCK, Ark.--(BUSINESS WIRE)--May 4, 2005--Potlatch Corporation (NYSE:PCH) Chairman and Chief Executive Officer L. Pendleton Siegel today was presented with documentation that management of the company's 473,000 acres in Arkansas has been third-party audited and certified under the rigorous environmental, social and economic standards of the internationally recognized Forest Stewardship Council - US(R) (FSCUS).
    In addition, the company's pine sawmill at Warren, Arkansas, has been chain-of-custody certified by FSCUS and is therefore authorized to market its southern yellow pine dimensional lumber products with the FSC label.
    Siegel noted that the Arkansas certification follows by one year the precedent-setting FSC certification of Potlatch's 667,000 acres in Idaho along with chain-of-custody certification of the company's Idaho lumber and plywood manufacturing operations. FSC certification of the Potlatch Idaho forestlands resulted in the company becoming the first publicly traded integrated forest products company in the U.S to become FSC-certified.
    The company is also evaluating FSC certification of its Minnesota forestlands (319,000 acres) and has received chain-of custody certification for its pulp-based manufacturing operations at Cypress Bend, Arkansas, and is pursuing chain-of-custody at its pulp-based manufacturing operations at Lewiston, Idaho.
    "FSC certification will contribute significantly to our strategy of employing third-party certification to add to shareholder value," Siegel said. He explained that Arkansas' FSC certification will complement third-party certifications already earned in 2002 under the Sustainable Forestry Initiative (R) (SFI) and International Organization for Standardization (ISO) 14001 systems.
    "There appears to be a growing trend among large building products retailers, secondary manufacturers, architects, contractors and governments at all levels toward preferences for certified products, including FSC-certified products," Siegel stated. He noted that Arkansas Governor Huckabee had recently signed legislation that promotes the conservation of natural resources through the use of sustainable building rating systems. "This trend fits well with Potlatch's commitment to forestland stewardship, and we expect to grow with it," he said. He added that third-party certification demonstrates the company's commitment publicly in ways that can benefit shareholders as well as society and the environment.
    Siegel added that the company's third-party certifications continue to be instrumental in securing public and private support for cooperative conservation easements, which produce additional value for Potlatch shareholders. Conservation easements are currently under consideration in Arkansas, with the goal of maintaining private forestland for sustainable management and public access. "We expect our FSC certification to provide additional benefits in that area by making our lands more attractive candidates for easement purchases," he said.
    The Potlatch Chief Executive Officer also praised the company's dedicated resource professionals and foresters in Arkansas. "In the final analysis, it is our forestry professionals, working on the ground, that make it possible for us to earn third party certifications," he said. "It is their commitment to stewardship in the forest that makes the difference," said Siegel. Siegel also extended thanks to a number of conservation and contractor organizations that have endorsed the company's decision to certify under FSC, including several organizations that participated in the public presentation of the FSC certificate in Little Rock. "We are especially indebted to the Rainforest Alliance, who co-hosted the certification announcement event and were instrumental in our FSC certification."
    Other participants included the World Wildlife Fund, National Wildlife Federation, Audubon Arkansas, The Nature Conservancy, The Arkansas Game & Fish Commission, the Arkansas Natural Heritage Commission and the Arkansas Wildlife Federation.
    To qualify for FSC certification, Potlatch's management practices in Arkansas underwent a rigorous audit by SmartWood, the forestry arm of the Rainforest Alliance. The findings in the audit process and Potlatch's willingness to adapt certain practices resulted in Potlatch being awarded the FSC certification.
    For more information see Potlatch Corporation's website at www.potlatchcorp.com or the website for the Rainforest Alliance at www.rainforest-alliance.org.

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

--30--MRO/se*

CONTACT: Potlatch Corporation Michael D. Sullivan (Media), 509-835-1516 509-951-3405 (cell) or Douglas D. Spedden (Investors), 509-835-1549 or Lisa Stocker (Arkansas), 870-226-1114 870-820-2507 (cell)

KEYWORD: ARKANSAS WASHINGTON INDUSTRY KEYWORD: GOVERNMENT FOREST PRODUCTS SOURCE: Potlatch Corporation

Copyright Business Wire 2005