Weyerhaeuser Announces Closure of Sawmill at Grande Cache, Alberta; Will Take 4 Cents per Share After-Tax Charge in Fourth Quarter

Weyerhaeuser Company (NYSE: WY) announced today that it will close its lumber mill at Grande Cache, Alberta on Feb. 8. The closure will result in a fourth quarter after-tax charge of US$ 8 million, or 4 cents per share.

Approximately 156 hourly and salaried jobs are affected by the closure.

Fred Rowson, Weyerhaeuser's vice president, Alberta, said the decision is part of the company's overall strategy to make its softwood lumber business competitive. "The forest industry faces serious challenges," said Rowson. "Our people in Grande Cache have done an excellent job under very difficult circumstances. Unfortunately, the mill's small size and high cost structure, along with a shortage of timber, make it uncompetitive for the longer term in today's global marketplace. Expansion is not an option because there is not enough good-quality fibre available to support increased production."

Rowson said Weyerhaeuser was unsuccessful in its search for alternatives to a closure, including attempting to sell the mill to other forest companies in the region.

"I know closure will have a tremendous impact on the community of Grande Cache," he added. "We sincerely regret the hardship this will cause. Employees at the Grande Cache mill are skilled, productive, valuable people who have been together for many years and weathered many tough times. But the industry is going through structural changes over which they have no control."

Comprehensive human resources programs are in place to support employees at Grande Cache, including out-placement counseling, transition assistance, education and relocation assistance, and severance packages, as well as a process designed to help employees get a job at other company locations.

Weyerhaeuser purchased the Grande Cache sawmill in 1992. The mill produces approximately 130 million board feet of lumber per year. Products include spruce-pine-fir framing lumber, premium grades for the Japanese market and Machine Stress Rated lumber used in roof trusses and other commercial applications.

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 www.weyerhaeuser.com.

CONTACT: Canada Media, Dave Larsen, +1-604-868-5044, or U.S. Media, Xan McCallum, +1-253-924-3781, or Analysts, Kathy McAuley, +1-253-924-2058, all of Weyerhaeuser Company Limited.

SOURCE: Weyerhaeuser Company Limited

CONTACT: Canada Media, Dave Larsen, +1-604-868-5044, or U.S. Media,
Xan McCallum, +1-253-924-3781, or Analysts, Kathy McAuley, +1-253-924-2058,
all of Weyerhaeuser Company

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