MINNEAPOLIS--(BUSINESS WIRE)--Sept. 1, 2005--National, regional and Minnesota conservation organizations today joined in celebrating certification of Potlatch Corporation's (NYSE:PCH) 319,000 acres of Minnesota forestland and its Bemidji sawmill as being in compliance with the rigorous environmental, social and economic standards of the internationally recognized Forest Stewardship Council -- US(R) (FSC).

"Minnesota's natural resources are a fundamental part of our quality of life and it is our responsibility to be good stewards of those resources," Governor Tim Pawlenty said in a letter to the company. "Potlatch's milestone conservation achievements highlight Minnesota's national leadership and our vision for long-term protection and the proper management of our unique natural resources."

FSC President Roger Dower also noted, "In addition to Potlatch's forest management certification of their own land, the current and projected certifications of substantial amounts of public lands in Minnesota will extend the company's ability to supply FSC-labeled products to consumers," he said. Potlatch Bemidji's lumber mill purchases timber from the state and counties.

Potlatch Chairman and Chief Executive Officer Penn Siegel received documentation of the certification during ceremonies at the University of Minnesota's St. Paul campus from Dave Bubser, USA Manager for SmartWood, FSC's registered certifier. In presenting the certificates, Bubser noted, "With the FSC certification of their 319,000 acres of Minnesota forestlands as the final step in achieving certification for their entire 1.5 MM acre land base, Potlatch has placed themselves among the vanguard of industrial timber companies in the United States. Our audit of Potlatch makes it clear that Potlatch has fully integrated the FSC standards into their core operating systems and has truly embraced the value of responsible stewardship. Potlatch has clearly distinguished itself as a leader among their peers, both regionally and nationally," he concluded.

Siegel stressed that the Minnesota FSC certifications represent yet another link in a chain of commitments to third-party oversight of the company's management practices. "With today's announcement, Potlatch's management practices on its entire forestland ownership is third-party certified under FSC and the Sustainable Forestry Initiative(R) (SFI), while our internal Environmental Management System (EMS) is certified to the International Organization for Standardization's (ISO) 14001 standards," he stated. He added that third-party certification demonstrates a commitment to stewardship publicly in ways that can benefit Potlatch shareholders as well as society and the environment. "In addition, with the chain of custody certification of our Bemidji mill nearly all of our lumber and plywood manufacturing facilities are FSC chain-of-custody certified and authorized to market products with the FSC label," he continued.

Robert Hrubes, Senior Vice President of Scientific Certification Systems (SCS) noted, "SCS is very pleased to help commemorate the accomplishment of Potlatch's company-wide FSC certification goal.

Beginning with our certifications of Potlatch's Hybrid Poplar operations in Oregon, in 2001, and the Idaho Resource Management Division in 2003, Potlatch Corporation has now achieved the highest standard of independent forest management certification for all of its forest operations. With this company-wide accomplishment, Potlatch has demonstrated to the entire forest products industry that publicly traded companies can practice exemplary forestry and, by doing so, can successfully engage the FSC."

"While FSC certification is a logical extension of Potlatch's historical commitment to sound stewardship, we believe it will contribute significantly to our strategy of employing third-party certification to add to shareholder value," Siegel said. "I would first note that the process of becoming certified makes us better land managers. Our foresters, some of who are here today, will tell you that the audits we undergo are rigorous, requiring us to be more demanding of ourselves and make continuous improvements in our practices and our knowledge of our resources. As a result, not only are our lands managed better from an environmental perspective, they are also more productive. As we have gained knowledge, we have improved our harvesting practices, which in turn have helped control costs while increasing output," he explained.

Siegel added, "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. The company's third-party certifications also continue to be instrumental in securing public and private support for cooperative conservation easements, which produce additional value for Potlatch shareholders while securing public access to the land and assuring proper management. Siegel explained that such easements are secured with the advice and partnership of conservation groups, including the Trust for Public Lands, The Conservation Fund and The Nature Conservancy."

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

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

"The Conservation Fund applauds Potlatch for its commitment to sustaining Minnesota's working forests. This effort demonstrates a balanced approach to forestry that integrates environmental and economic objectives for land and water resources worthy of future generations," stated Tom Duffus, MN/WI State Director for The Conservation Fund (TCF). Potlatch is currently working with TCF to facilitate purchase of a portion of Potlatch lands to expand Crow Wing State Park.

The Potlatch Chief Executive Officer also praised the company's dedicated resource professionals and foresters in Minnesota and throughout the company. "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 conservation and contractor organizations that have endorsed the company's decisions to certify under FSC, including several organizations that participated in the public presentation of the FSC certificate in Minneapolis. "We are most grateful to the Forest Stewardship Council and its registered certifiers, SmartWood and Scientific Certification Systems. We deeply appreciate the support and encouragement we've received from conservation and wildlife interests, particularly the Rainforest Alliance, World Wildlife Fund and the National Wildlife Federation, as well as Trout Unlimited and the Minnesota Deer Hunters Association."

To qualify for FSC certification, Potlatch's management practices in Minnesota underwent a rigorous audit by SmartWood, the forest certification 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 on certification, see Potlatch Corporation's website at www.potlatchcorp.com, FSCUS at www.fscus.org, Rainforest Alliance/SmartWood at www.rainforest-alliance.org or Scientific Certification Systems at www.scscertified.com.

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.

Copyright Business Wire 2005

Potlatch Corporation

Potlatch Corporation

Potlatch Corporation is a real estate investment trust, or REIT, that owns and manages 1.5 million acres of timberlands located in Arkansas, Idaho and Minnesota and a 17,000-acre hybrid poplar plantation in Oregon. Through a taxable REIT subsidiary we also operate 15 manufacturing facilities that are engaged in the production of commodity wood products and bleached pulp products. The company traces its history to the founding in 1903 of Potlatch Lumber Co.

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