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Weyerhaeuser Reports Third Quarter Net Earnings of $82 Million; Reduces Debt by $360 Million During Quarter

PRNewswire
FEDERAL WAY, Wash.
Oct 24, 2003

Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings of $82 million, or 37 cents per share, on net sales of $5.2 billion. This compares with $13 million, or 6 cents per share, on net sales of $4.9 billion for the third quarter of 2002.

  Third quarter 2003 earnings include the following after-tax items:

  -- A charge of $32 million, or 14 cents per share, for closure of
     facilities;
  -- A charge of $15 million, or 7 cents per share, associated with the
     settlement of a class action linerboard antitrust lawsuit;
  -- A charge of $15 million, or 7 cents per share, for integration and
     restructuring activities.

  Third quarter 2002 earnings include the following after-tax items:

  -- A charge of $11 million, or 5 cents per share, for integration and
     restructuring activities;
  -- A charge of $20 million, or 9 cents per share, for business disruption
     costs following a recovery boiler incident at the Plymouth, N.C., paper
     facility.

  Other significant third quarter financial matters include:

  -- Reduced Weyerhaeuser Company debt to $12.4 billion as of the end of the
     third quarter.  Total company debt, which includes Real Estate and
     related operations, was reduced approximately $360 million to $13.2
     billion at the end of the quarter.
  -- Capital spending, excluding Real Estate and related operations, for the
     first nine months was approximately $471 million, in line with a
     revised estimate of $720 million for the entire year.
  -- Incurred approximately $25 million in countervailing and anti-dumping
     duties and related costs on Canadian softwood lumber the company
     imports into the United States.  This compares with $26 million
     incurred in the second quarter.

"The strength of the structural panel and softwood lumber markets provided the long-awaited improvement of our Wood Products segment, but our fine paper and containerboard packaging businesses face challenges from weak demand and deteriorating prices," said Steven R. Rogel, chairman, president and chief executive officer. "Real estate continues to be a strong performer. In addition, we continue to make progress on paying down the debt associated with the Willamette acquisition.

"We see some bright spots in the fourth quarter," Rogel said. "Our home building businesses continue to operate with a strong backlog and wood products pricing is expected to decline seasonally, but remain strong relative to fourth quarter last year. Market pulp prices are improving modestly, but paper and packaging markets are expected to remain weak."

  SUMMARY OF THIRD QUARTER FINANCIAL HIGHLIGHTS

  Millions (except per share data)   3Q 2003   3Q 2002   Change
   Net earnings                          $82       $13      $69
   Earnings per share                  $0.37     $0.06    $0.31
   Net sales                          $5,184    $4,890     $294

  SEGMENT RESULTS FOR THIRD QUARTER 2003
  (Contributions to Pre-Tax Earnings)

  Millions                           3Q 2003   3Q 2002   Change
   Timberlands                          $143      $133      $10
   Wood Products                        $151      ($18)    $169
   Pulp and Paper                       ($18)      $10     ($28)
   Containerboard, Packaging and
    Recycling                            $42       $88     ($46)
   Real Estate and Related Assets        $97       $85      $12

  TIMBERLANDS
                                     3Q 2003   2Q 2003   Change
  Contribution to earnings
   (millions)                           $143      $300    ($157)

Excluding a pre-tax gain of $144 million in the second quarter on the sales of Western Washington timberlands, third quarter earnings were slightly lower than the previous quarter. Lower harvest levels resulting from fire danger in the West and unseasonable wet weather in the South affected third quarter earnings. The segment benefited, however, from a stronger export market aided by a strengthening Japanese housing market.

The fourth quarter outlook for Timberlands earnings, excluding previously announced timberland sales in the Carolinas and Tennessee, is expected to decline slightly from the third quarter due to lower southern fee harvest.

  WOOD PRODUCTS
                                     3Q 2003   2Q 2003   Change
  Contribution (charge) to
   earnings (millions)                  $151      ($53)    $204

An exceptionally strong market for oriented strand board and plywood, as well as an improving lumber market, produced the segment's first quarterly earnings since second quarter in 2002. Third quarter results reflect a pre-tax charge of $31 million for costs associated with the closure of the Dierks, Ark., veneer operations and the engineered lumber mill in Junction City, Ore.

Fourth quarter results are expected to be lower than third quarter due primarily to lower lumber and structural panel prices.

  PULP AND PAPER
                                     3Q 2003   2Q 2003   Change
  Contribution (charge) to
   earnings (millions)                  ($18)      ($7)    ($11)

Pulp prices rebounded late in the quarter, but a weak paper market hurt third quarter results. Costs associated with approximately 64,000 tons of market-related downtime for fine paper also negatively affected the third quarter performance. Third quarter results include pre-tax charges totaling $9 million for costs associated with staff reductions at a number of facilities.

Fourth quarter earnings are expected to be lower than third quarter due to weak paper markets that will offset expected increases in pulp prices.

  CONTAINERBOARD, PACKAGING AND RECYCLING
                                     3Q 2003   2Q 2003   Change
  Contribution to earnings
   (millions)                            $42      $108     ($66)

Eroding packaging and containerboard prices produced third quarter results that were lower than second quarter levels. During the quarter, Weyerhaeuser took approximately 89,000 tons of market-related downtime. Third quarter results include pre-tax charges of $40 million for costs associated primarily with the settlement of a class action linerboard antitrust lawsuit and the closure of the North Bend, Ore., containerboard mill.

Excluding the third quarter charges for settlement of the class action linerboard antitrust lawsuit and closures, fourth quarter earnings are expected to be lower than third quarter due primarily to eroding prices and seasonally lower packaging shipments.

  REAL ESTATE AND RELATED ASSETS
                                    3Q 2003   2Q 2003    Change
  Contribution to earnings
   (millions)                           $97       $91        $6

Real estate benefited from the continued strong housing market to produce record quarterly earnings. Closings increased from second quarter levels and traffic during the third quarter remained strong.

Fourth quarter earnings are expected to be slightly higher than third quarter due to increased closings of single-family homes. The company currently has a backlog in excess of six months of homes sold, but not closed.

OTHER

The company will hold a live conference call at 7 a.m. PDT (10 a.m. EDT) on Oct. 24 to discuss the third quarter results.

To access the conference call, listeners calling from within North America should dial 1-800-446-4472 at least 15 minutes prior to the start of the conference call. Those wishing to access the call from outside North America should dial 1-416-695-5261. Replays of the call will be available for one week following completion of the live call and can be accessed at 1-866-518-1010 within North America and at 1-416-695-5275 from outside North America.

The call may also be accessed through Weyerhaeuser's Internet site at www.weyerhaeuser.com by clicking on the "Listen to our conference call" link.

Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2002, sales were Cdn$29.1 billion (US$18.5 billion). It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Weyerhaeuser Company Limited, a wholly owned subsidiary, has Exchangeable Shares listed on the Toronto Stock Exchange under the symbol WYL. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com/ .

This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of these forward-looking statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "believes," "should," "approximately," anticipates," "estimates," and "plans," and the negative or other variations of those terms or comparable terminology or by discussions of strategy, plans or intentions. In particular, some of these forward-looking statements deal with expectations regarding the company's markets in the fourth quarter; expected earnings and performance of the company's business segments during the fourth quarter and anticipated capital spending. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts; market demand for the company's products, which may be tied to the relative strength of various U.S. business segments; energy prices; performance of the company's manufacturing operations; the successful execution of internal performance plans; the level of competition from domestic and foreign producers; the effect of forestry, land use, environmental and other governmental regulations; fires, floods and other natural disasters; and legal proceedings. The company is also a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan, and by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Euro and the Canadian dollar; and restrictions on international trade or tariffs imposed on imports, including the countervailing and dumping duties imposed on the company's softwood lumber shipments from Canada to the United States. These and other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.

  For more information contact:
   Media - Bruce Amundson 253-924-3047
   Analysts - Kathryn McAuley 253-924-2058


   WEYERHAEUSER COMPANY
   STATISTICAL INFORMATION
   (unaudited)

  CONSOLIDATED EARNINGS(A)         Q1              Q2              Q3
    (in millions)             March   March   June    June    Sept.   Sept.
                               30,     31,     29,     30,     28,     29,
                              2003    2002    2003    2002    2003    2002
  Net sales and revenues:
    Weyerhaeuser(B)          $4,169  $3,595  $4,498  $4,501  $4,650  $4,422
    Real estate and related
     assets                     445     396     432     421     534     468
  Total net sales and
   revenues                   4,614   3,991   4,930   4,922   5,184   4,890

  Costs and expenses:
    Weyerhaeuser:
      Costs of products sold  3,322   2,831   3,611   3,519   3,598   3,576
      Depreciation,
       amortization and fee
       stumpage                 321     264     313     311     320     304
      Selling expenses          107     103     111     116     117     116
      General and
       administrative
       expenses                 231     186     232     231     249     201
      Research and
       development expenses      12      12      12      13      10      11
      Taxes other than
       payroll and income
       taxes                     47      38      48      53      45      48
      Charges for
       integration and
       restructuring             29       2      25      23      24      17
      Charges for closure of
       facilities                22      27      12      28      48      --
      Other operating costs,
       net©(D)                 37       4    (205)    (27)     16      19
                              4,128   3,467   4,159   4,267   4,427   4,292
    Real estate and related
     assets:
      Costs and operating
       expenses                 330     291     316     317     406     359
      Depreciation and
       amortization               3       2       2       1       3       1
      Selling expenses           24      21      25      24      27      23
      General and
       administrative
       expenses                  14      10      14      11      15      14
      Taxes other than
       payroll and income
       taxes                      1       1       1       1      --       1
      Other operating costs,
       net                       (7)     (8)     --       2       2       6
                                365     317     358     356     453     404
  Total costs and expenses    4,493   3,784   4,517   4,623   4,880   4,696

  Operating income              121     207     413     299     304     194

  Interest expense and other:
    Weyerhaeuser:
      Interest expense
       incurred(E)             (208)   (178)   (205)   (222)   (200)   (214)
      Less interest
       capitalized                5       4       6      16       3      16
      Equity in income
       (loss) of affiliates      (5)     (4)      3      (2)     (3)     (6)
      Interest income and
       other                      6       5       6       6       3       9
    Real estate and related
     assets:
      Interest expense
       incurred                 (14)    (13)    (13)    (13)    (13)    (12)
      Less interest
       capitalized               14      13      13      13      13      12
      Equity in income of
       unconsolidated
       entities                   5       6       7       6      11      10
      Interest income and
       other                     11       6       8       8       6      11
  Earnings before income
   taxes and cumulative
   effect of a change in
   accounting principle         (65)     46     238     111     124      20
  Income taxes                   22     (16)    (81)    (39)    (42)     (7)
  Earnings before cumulative
   effect of a change in
   accounting principle         (43)     30     157      72      82      13
  Cumulative effect of a
   change in accounting
   principle, net of
   applicable taxes of $6(F)    (11)     --      --      --      --      --
  Net earnings (loss)          $(54)    $30    $157     $72     $82     $13

  Basic and diluted net
   earnings (loss) per
   share:
    Net earnings (loss)
     before cumulative
     effect of a change in
     accounting principle    $(0.19)  $0.14   $0.71   $0.32   $0.37   $0.06

    Cumulative effect of a
     change in accounting
     principle                (0.05)     --      --      --      --      --
    Net earnings (loss)      $(0.24)  $0.14   $0.71   $0.32   $0.37   $0.06

  Dividends paid per share    $0.40   $0.40   $0.40   $0.40   $0.40   $0.40


                                                                     Year
  CONSOLIDATED EARNINGS (A)                  Year-to-date     Q4     ended
     (in millions)                         Sept.     Sept.   Dec.    Dec.
                                            28,       29,     29,     29,
                                           2003      2002    2002    2002
  Net sales and revenues:
     Weyerhaeuser (B)                     $13,317  $12,518  $4,253  $16,771
     Real estate and related assets         1,411    1,285     465    1,750
  Total net sales and revenues             14,728   13,803   4,718   18,521

  Costs and expenses:
     Weyerhaeuser:
       Costs of products sold              10,531    9,926   3,285   13,211
       Depreciation, amortization and fee
        stumpage                              954      879     335    1,214
       Selling expenses                       335      335     115      450
       General and administrative
        expenses                              712      618     229      847
       Research and development expenses       34       36      16       52
       Taxes other than payroll and
        income taxes                          140      139      39      178
       Charges for integration and
        restructuring                          78       42      30       72
       Charges for closure of facilities       82       55      40       95
       Other operating costs, net©(D)      (152)      (4)   (135)    (139)
                                           12,714   12,026   3,954   15,980
     Real estate and related assets:
       Costs and operating expenses         1,052      967     359    1,326
       Depreciation and amortization            8        4       7       11
       Selling expenses                        76       68      22       90
       General and administrative expenses     43       35      13       48
       Taxes other than payroll and
        income taxes                            2        3       1        4
       Other operating costs, net              (5)      --      (1)      (1)
                                            1,176    1,077     401    1,478
  Total costs and expenses                 13,890   13,103   4,355   17,458

  Operating income                            838      700     363    1,063

  Interest expense and other:
     Weyerhaeuser:
       Interest expense incurred(E)          (613)    (614)   (207)    (821)
       Less interest capitalized               14       36      14       50
       Equity in income (loss) of affiliates   (5)     (12)     (1)     (13)
       Interest income and other               15       20       8       28
     Real estate and related assets:
       Interest expense incurred              (40)     (38)    (15)     (53)
       Less interest capitalized               40       38      15       53
       Equity in income of unconsolidated
           entities                            23       22       9       31
       Interest income and other               25       25       8       33
  Earnings before income taxes and
   cumulative effect of a change in
   accounting principle                       297      177     194      371
  Income taxes                               (101)     (62)    (68)    (130)
  Earnings before cumulative effect of a
   change in accounting principle             196      115     126      241
  Cumulative effect of a change in
   accounting principle, net of applicable
   taxes of $6(F)                             (11)      --      --       --
  Net earnings (loss)                        $185     $115    $126     $241

  Basic and diluted net earnings (loss)
   per share:
     Net earnings (loss) before cumulative
      effect of a change in accounting
      principle                             $0.88    $0.52   $0.57    $1.09

     Cumulative effect of a change in
      accounting principle                  (0.05)      --      --       --
     Net earnings (loss)                    $0.83    $0.52   $0.57    $1.09

  Dividends paid per share                  $1.20    $1.20   $0.40    $1.60

  (A)  Certain reclassifications have been made to conform prior period data
       with the current presentation.
  (B)  The first, second and third quarters of 2003 include charges of $24
       million, $26 million and $25 million, respectively, for
       countervailing and anti-dumping duties and related costs.  2002 first
       quarter includes $13 million of charges for countervailing and
       anti-dumping duties and related costs and a credit of $18 million for
       the reversal of countervailing and anti-dumping duties accrued in
       2001.  The 2002 second quarter includes $7 million of charges for
       countervailing and anti-dumping duties and related costs, a credit of
       $29 million for the reversal of charges accrued in 2001 and a credit
       of $13 million for charges accrued in the first quarter of 2002.  The
       2002 third and fourth quarters include charges of $31 million and $26
       million, respectively, for countervailing and anti-dumping duties and
       related costs.  The 2002 impact of countervailing and anti-dumping
       duties and related costs is a  net charge of $17 million which
       includes current year charges of $64 million and $47 million of
       credits related to the reversal of charges accrued in 2001.
  ©  2003 first, second and third quarters include net foreign exchange
       gains (losses) of $35 million, $47 million and ($4) million,
       respectively.  2002 includes $33 million in net foreign exchange
       gains.  Gains of $8 million, $27 million and $14 million are included
       in the first, second and fourth quarters, respectively.  A loss of
       $16 million is included in the third quarter.
  (D)  The first quarter of 2003 includes a $79 million charge for a lawsuit
       involving the market for Pacific Northwest alder logs.  2003 second
       quarter includes a $144 million gain on the sales of timberlands in
       Washington state and a $25 million gain for the settlement of an
       insurance claim relating to the Cemwood litigation.  2003 third
       quarter includes a $23 million charge associated with the settlement
       of a class action linerboard antitrust lawsuit.  2002 fourth quarter
       includes a $117 million gain on the sale of timberlands in Washington
       state.
  (E)  2002 first quarter includes a $35 million charge to write off debt
       issue costs in connection with the refinancing of debt in connection
       with the acquisition of Willamette Industries.
  (F)  Statement of Financial Accounting Standards No. 143, Accounting for
       Asset Retirement Obligations, was adopted as of the beginning of
       2003.  Results for 2002 were not impacted by the change in accounting
       principle.


   WEYERHAEUSER COMPANY
   STATISTICAL INFORMATION (unaudited)

  Net sales and revenues
   (in millions):                   Q1              Q2              Q3
                               March   March   June    June    Sept.   Sept.
                                30,     31,     29,     30,     28,     29,
                               2003    2002    2003    2002    2003    2002
  Timberlands:
    Raw materials (logs,
     timber and chips)         $203    $142    $213    $184    $212    $193
    Other products               21      19      24      21      18      18
                                224     161     237     205     230     211
  Wood Products:
    Softwood lumber             752     692     846     901     890     845
    Plywood and veneer          174     158     182     203     228     195
    Oriented strand board,
     composite and other
     panels                     257     240     331     320     445     217
    Hardwood lumber              80      76      86      81      75      72
    Engineered lumber
     products                   254     253     308     315     329     324
    Raw materials (logs,
     timber and chips)           81     106      82     129      72     120
    Other products              174     176     221     198     213     184
                              1,772   1,701   2,056   2,147   2,252   1,957
  Pulp and Paper:
    Pulp                        309     280     321     297     333     300
    Paper                       596     416     546     563     530     590
    Coated groundwood            36      30      32      30      39      32
    Bleached board               47      40      52      51      50      37
    Other products               10       6       7      10       6       8
                                998     772     958     951     958     967

  Containerboard, Packaging
   and Recycling:
    Containerboard               77      73      81      90      73     101
    Packaging                   879     758     922     935     898     909
    Recycling                    60      48      63      51      60      67
    Bags                         20      10      20      20      19      22
    Other products               33      10      35      34      40      28
                              1,069     899   1,121   1,130   1,090   1,127

  Real Estate and Related
   Assets                       445     396     432     421     534     468

  Corporate and Other           106      62     126      68     120     160

                             $4,614  $3,991  $4,930  $4,922  $5,184  $4,890


                                                                      Year
  Net sales and revenues (in millions):      Year-to-date      Q4     ended
                                             Sept.    Sept.   Dec.     Dec.
                                              28,      29,     29,      29,
                                             2003     2002    2002     2002
  Timberlands:
     Raw materials (logs, timber and chips)  $628     $519    $254     $773
     Other products                            63       58      39       97
                                              691      577     293      870
  Wood Products:
     Softwood lumber                        2,488    2,438     748    3,186
     Plywood and veneer                       584      556     178      734
     Oriented strand board, composite and
      other panels                          1,033      777     251    1,028
     Hardwood lumber                          241      229      77      306
     Engineered lumber products               891      892     256    1,148
     Raw materials (logs, timber and chips)   235      355     117      472
     Other products                           608      558     160      718
                                            6,080    5,805   1,787    7,592
  Pulp and Paper:
     Pulp                                     963      877     319    1,196
     Paper                                  1,672    1,569     594    2,163
     Coated groundwood                        107       92      34      126
     Bleached board                           149      128      51      179
     Other products                            23       24      10       34
                                            2,914    2,690   1,008    3,698

  Containerboard, Packaging and Recycling:
     Containerboard                           231      264      86      350
     Packaging                              2,699    2,602     864    3,466
     Recycling                                183      166      63      229
     Bags                                      59       52      23       75
     Other products                           108       72      20       92
                                            3,280    3,156   1,056    4,212

  Real Estate and Related Assets            1,411    1,285     465    1,750

  Corporate and Other                         352      290     109      399

                                          $14,728  $13,803  $4,718  $18,521


  Contribution (charge) to
   earnings(A):                     Q1             Q2              Q3
   (in millions)              March   March    June   June    Sept.   Sept.
                               30,     31,      29,    30,     28,     29,
                              2003    2002    2003    2002    2003    2002
  Timberlands(B)              $149    $107    $300    $162    $143    $133
  Wood Products©(D)(E)      (150)      9     (53)     64     151     (18)
  Pulp and Paper(F)(G)          10       1      (7)    (15)    (18)     10
  Containerboard, Packaging
   and Recycling(H)(I)          80      58     108      75      42      88
  Real Estate and Related
   Assets(J)                    95      91      91      79      97      85
  Corporate and Other(K)(L)(M) (46)    (46)     (2)    (48)    (94)    (80)
                              $138    $220    $437    $317    $321    $218

  Contribution (charge) to
   earnings(A):                          Year-to-date      Q4     Year ended
   (in millions)                         Sept.    Sept.    Dec.       Dec.
                                          28,      29,      29,        29,
                                         2003     2002     2002       2002
  Timberlands(B)                         $592     $402     $300       $702
  Wood Products©(D)(E)                  (52)      55      (75)       (20)
  Pulp and Paper(F)(G)                    (15)      (4)      86         82
  Containerboard, Packaging and
   Recycling(H)(I)                        230      221      114        335
  Real Estate and Related Assets(J)       283      255       81        336
  Corporate and Other(K)(L)(M)           (142)    (174)    (119)      (293)
                                         $896     $755     $387     $1,142

  (A)  Certain reclassifications have been made to conform prior period data
       with the current presentation.
  (B)  2003 second quarter includes a $144 million gain on the sales of
       timberlands in Washington state.  2002 fourth quarter includes a $117
       million gain on the sale of timberlands in Washington state.
  ©  The first, second and third quarters of 2003 include charges of
       $24 million, $26 million and $25 million, respectively, for
       countervailing and anti-dumping duties and related costs.  2002 first
       quarter includes $13 million of charges for countervailing and
       anti-dumping duties and related costs and a credit of $18 million for
       the reversal of countervailing and anti-dumping duties accrued in
       2001.  The 2002 second quarter includes $7 million of charges for
       countervailing and anti-dumping duties and related costs, a credit of
       $29 million for the reversal of charges accrued in 2001 and a credit
       of $13 million for charges accrued in the first quarter of 2002.  The
       2002 third and fourth quarters include charges of $31 million and
       $26 million, respectively, for countervailing and anti-dumping duties
       and related costs.  The 2002 impact of countervailing and
       anti-dumping duties and related costs is a  net charge of $17 million
       which includes current year charges of $64 million and $47 million of
       credits related to the reversal of charges accrued in 2001.
  (D)  The first quarter of 2003 includes a $79 million charge for a lawsuit
       involving the market for Pacific Northwest alder logs.
  (E)  2003 first, second and third quarters include costs for the closure
       of facilities of $22 million, $11 million and $31 million,
       respectively.  2003 second quarter also includes a charge of
       $16 million to recognize impairment associated with an impending
       facility sale.  2002 includes closure costs of $51 million
       ($17 million in the first quarter and $34 million in the fourth
       quarter).
  (F)  2002 includes $12 million in net business disruption costs associated
       with the recovery boiler explosion at the Plymouth, N.C., paper
       facility.  Costs of $22 million and $30 million are included in the
       second and third quarters, respectively.  Net recoveries of
       $40 million are included in the fourth quarter.
  (G)  2003 second quarter includes $3 million of closure costs.  2002
       fourth quarter results include an $8 million benefit resulting from
       adjustments to closure reserves established in 2001.
  (H)  The third quarter of 2003 includes a $23 million charge associated
       with the settlement of a class action linerboard antitrust lawsuit.
  (I)  2003 second quarter includes the reversal of an accrual for closure
       charges of $2 million.  2003 third quarter includes closure costs of
       $17 million.  2002 includes closure costs of $52 million ($10 million
       in the first quarter, $28 million in the second quarter and
       $14 million in the fourth quarter).
  (J)  2003 first quarter includes gains of $8 million for the sale of two
       office buildings and $10 for the sale of an apartment complex.  2003
       second quarter includes a gain of $12 million for the sale of
       commercial property.  2002 includes $21 million in gains from sales
       of apartment complexes, including $7 million in the second quarter
       and $14 million in the third quarter.
  (K)  2003 second quarter includes a $6 million charge to reflect the final
       settlement in connection with the termination of the former MacMillan
       Bloedel pension plan for U.S. employees. 2002 results include a
       $35 million charge in the fourth quarter related to the termination
       of this pension plan.
  (L)  2003 second quarter includes a $25 million gain for the settlement of
       an insurance claim relating to the Cemwood litigation.
  (M)  2003 results include net foreign exchange gains (losses) of
       $36 million in the first quarter, $51 million in the second quarter
       and ($6) million in the third quarter.  2002 results include net
       foreign exchange gains (losses) of $8 million in the first quarter,
       $27 million in the second quarter, ($17 million) in the third quarter
       and $14 million in the fourth quarter, for a 2002 net gain of
       $32 million.  These gains and losses result primarily from
       fluctuations in Canadian and New Zealand exchange rates.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION
  (unaudited)

  Third party sales volumes:         Q1             Q2              Q3
                                March   March  June    June    Sept.   Sept.
                                 30,     31,    29,     30,     28,     29,
                                2003    2002   2003    2002    2003    2002
  Timberlands (millions):
    Raw materials - cubic feet   96      67     110     102     102      91

  Wood Products (millions):
    Softwood lumber - board
     feet                     2,175   1,845   2,385   2,262   2,298   2,362
    Softwood plywood and
     veneer - square feet
     (3/8")                     726     624     760     815     744     792
    Composite panels - square
     feet (3/4")                278     308     317     445     313      95
    Oriented strand board -
     square feet (3/8")       1,025     945   1,206   1,095   1,129   1,117
    Hardwood lumber - board
     feet                       106     108     113     113     103     104
    Raw materials - cubic
     feet                       128     143     118     164     112     161

  Pulp and Paper (thousands):
    Pulp - air-dry metric tons  623     563     596     618     632     561
    Paper - tons                737     546     690     717     707     749
    Coated groundwood - tons     61      48      55      49      64      55
    Bleached board - tons        60      53      67      61      64      47
    Paper converting - tons     502     375     472     488     478     499

  Containerboard, Packaging
   and Recycling (thousands)
    Containerboard - tons       221     209     233     260     214     283
    Packaging - MSF          17,752  15,001  18,577  19,285  18,545  18,553
    Recycling - tons            593     604     566     552     538     539
    Kraft bags and sacks -
     tons                        25      13      24      26      25      26


                                                                      Year
  Third party sales volumes:                Year-to-date      Q4      ended
                                           Sept.    Sept.    Dec.     Dec.
                                            28,      29,      29,      29,
                                           2003     2002     2002     2002
  Timberlands (millions):
     Raw materials - cubic feet             308      260      110      370

  Wood Products (millions):
     Softwood lumber - board feet         6,858    6,469    2,154    8,623
     Softwood plywood and veneer -
      square feet (3/8")                  2,230    2,231      672    2,903
     Composite panels - square feet
      (3/4")                                908      848      299    1,147
     Oriented strand board - square
      feet (3/8")                         3,360    3,157    1,048    4,205
     Hardwood lumber - board feet           322      325      102      427
     Raw materials - cubic feet             358      468      127      595

  Pulp and Paper (thousands):
     Pulp - air-dry metric tons           1,851    1,742      636    2,378
     Paper - tons                         2,134    2,012      730    2,742
     Coated groundwood - tons               180      152       58      210
     Bleached board - tons                  191      161       68      229
     Paper converting - tons              1,452    1,362      497    1,859

  Containerboard, Packaging and
   Recycling (thousands)
     Containerboard - tons                  668      752      231      983
     Packaging - MSF                     54,874   52,839   17,491   70,330
     Recycling - tons                     1,697    1,695      597    2,292
     Kraft bags and sacks - tons             74       65       28       93


  Total production volumes:         Q1              Q2              Q3
                               March   March   June    June    Sept.   Sept.
                                30,     31,     29,     30,     28,     29,
                               2003    2002    2003    2002    2003    2002
  Timberlands (millions):
    Logs - cubic feet           182     153     152     191     147     164

  Wood Products (millions):
    Softwood lumber - board
     feet                     1,842   1,530   1,825   1,702   1,742   1,728
    Softwood plywood and
     veneer - square feet
     (3/8")                     672     471     557     649     596     638
    Composite panels -
     square feet (3/4")         231     218     252     183     253     235
    Oriented strand board -
     square feet (3/8")       1,011     957   1,051     944   1,061   1,115
    Hardwood lumber - board
     feet                       108      96     102      99     103     107

  Pulp and Paper
   (thousands):
    Pulp - air-dry metric tons  654     607     619     492     604     630
    Paper - tons                757     510     712     667     706     704
    Coated groundwood - tons     62      48      55      60      61      43
    Bleached board - tons        56      63      68      67      72      31
    Paper converting - tons     516     353     479     496     472     502

  Containerboard, Packaging
   and Recycling (thousands)
    Containerboard - tons     1,429   1,250   1,568   1,600   1,512   1,621
    Packaging - MSF          18,977  16,174  19,955  20,521  19,865  19,596
    Recycling - tons          1,528   1,387   1,644   1,588   1,507   1,551
    Kraft bags and sacks -
     tons                        25      13      25      25      23      27


  Total production volumes:                                           Year
                                           Year-to-date       Q4     ended
                                           Sept.    Sept.    Dec.     Dec.
                                            28,      29,      29,      29,
                                           2003     2002     2002     2002
  Timberlands (millions):
     Logs - cubic feet                      481      508      155      663

  Wood Products (millions):
     Softwood lumber - board feet         5,409    4,960    1,871    6,831
     Softwood plywood and veneer -
      square feet (3/8")                  1,825    1,758      520    2,278
     Composite panels - square feet
      (3/4")                                736      636      228      864
     Oriented strand board - square
      feet (3/8")                         3,123    3,016    1,033    4,049
     Hardwood lumber - board feet           313      302      104      406

  Pulp and Paper (thousands):
     Pulp - air-dry metric tons           1,877    1,729      552    2,281
     Paper - tons                         2,175    1,881      730    2,611
     Coated groundwood - tons               178      151       59      210
     Bleached board - tons                  196      161       66      227
     Paper converting - tons              1,467    1,351      493    1,844

  Containerboard, Packaging and
   Recycling (thousands)
     Containerboard - tons                4,509    4,471    1,533    6,004
     Packaging - MSF                     58,797   56,291   18,809   75,100
     Recycling - tons                     4,679    4,526    1,566    6,092
     Kraft bags and sacks - tons             73       65       28       93


   WEYERHAEUSER COMPANY
   STATISTICAL INFORMATION

   CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
   (in millions)
                                           March    June     Sept.     Dec.
                                            30,      29,      28,       29,
  Assets                                   2003     2003     2003     2002

  Weyerhaeuser
     Current assets:
       Cash and short-term investments       $59      $47      $57     $115
       Receivables, less allowances        1,573    1,671    1,661    1,413
       Inventories                         2,167    2,093    1,959    1,941
       Prepaid expenses                      455      427      436      419
             Total current assets          4,254    4,238    4,113    3,888
     Property and equipment               12,228   12,274   12,235   12,278
     Construction in progress                709      669      514      687
     Timber and timberlands at cost, less
      fee stumpage charged to disposals    4,450    4,454    4,440    4,402
     Investments in and advances to
      equity affiliates                      538      564      560      578
     Goodwill                              3,191    3,224    3,221    3,131
     Deferred pension and other assets     1,337    1,349    1,300    1,285
                                          26,707   26,772   26,383   26,249

  Real estate and related assets           1,989    2,065    2,064    1,970

     Total assets                        $28,696  $28,837  $28,447  $28,219

  Liabilities and Shareholders' Interest

  Weyerhaeuser
     Current liabilities:
       Notes payable and commercial paper   $321     $238     $155       $2
       Current maturities of long-term
        debt                                 595      594       92      786
       Accounts payable                      975    1,046      975      983
       Accrued liabilities                 1,162    1,192    1,214    1,223
             Total current liabilities     3,053    3,070    2,436    2,994
     Long-term debt                       12,129   11,866   12,120   11,907
     Deferred income taxes, pension,
      other postretirement benefits and
      other liabilities                    5,541    5,612    5,632    5,346
                                          20,723   20,548   20,188   20,247
  Real estate and related assets
     Notes payable and commercial paper      115      130      100       63
     Long-term debt                          764      762      762      814
     Other liabilities                       466      491      476      472
                                           1,345    1,383    1,338    1,349
     Total liabilities                    22,068   21,931   21,526   21,596

     Shareholders' interest                6,628    6,906    6,921    6,623

     Total liabilities and shareholders'
      interest                           $28,696  $28,837  $28,447  $28,219


   STATEMENT OF CASH FLOWS                  Q1           Q2          Q3
   SELECTED INFORMATION (unaudited)    March  March  June  June  Sept. Sept.
   (in millions)                        30,     31,   29,   30,   28,   29,
   (Weyerhaeuser only, excludes real   2003    2002  2003  2002  2003  2002
    estate & related assets)

     Net cash from operations         $(126)   $(90) $465  $379  $489  $268
     Cash paid for property and
      equipment                        (128)   (158) (172) (288) (146) (237)
     Cash paid for timberlands
      reforestation                     (14)    (12)   (5)   (8)   (6)   (6)
     Cash received from issuances of
      debt                                1  13,001    --   100    12    26
     Revolving credit facilities,
      notes and commercial paper
      borrowings, net                   599      30  (333) (150)  166   122
     Payments on debt                  (251) (6,593)  (14)  (97) (509) (159)


   STATEMENT OF CASH FLOWS                                          Year
   SELECTED INFORMATION (unaudited)       Year-to-date      Q4     ended
     (in millions)                       Sept.    Sept.    Dec.     Dec.
   (Weyerhaeuser only, excludes real      28,      29,      29,      29,
    estate & related assets)             2003     2002     2002     2002

     Net cash from operations            $828     $557     $701   $1,258
     Cash paid for property and
      equipment                          (446)    (683)    (241)    (924)
     Cash paid for timberlands
      reforestation                       (25)     (26)     (10)     (36)
     Cash received from issuances of
      debt                                 13   13,127    1,015   14,142
     Revolving credit facilities, notes
      and commercial paper borrowings,
       net                                432        2     (230)    (228)
     Payments on debt                    (774)  (6,849)  (1,375)  (8,224)

SOURCE: Weyerhauser Company Limited

CONTACT: media, Bruce Amundson, +1-253-924-3047, or analysts, Kathryn
McAuley, +1-253-924-2058, both of Weyerhauser Company

Web site: http://www.weyerhaeuser.com/


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