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Weyerhaeuser Reports Third Quarter Net Earnings of $594 Million, or $2.45 Per Diluted Share, on Net Sales of $5.8 Billion

PRNewswire
FEDERAL WAY, Wash.
Oct 22, 2004

Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings of $594 million, or $2.45 per diluted share, on net sales of $5.8 billion. This compares with $82 million, or 37 cents per diluted share, on net sales of $5.2 billion for the third quarter of 2003.

  (Logo:  http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a
          http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b )
  Third quarter 2004 earnings include the following after-tax items:

  -- A gain of $179 million, or 74 cents per diluted share, from a sale of
     timberlands in Georgia.
  -- A gain of $16 million, or 7 cents per diluted share, from a tenure
     reallocation agreement with the British Columbia government.
  -- A gain of $13 million, or 5 cents per diluted share, due to the
     reduction of the reserve for hardboard siding claims.
  -- A charge of $7 million, or 3 cents per diluted share, related to the
     sale or closure of facilities.

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

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

  Other significant third quarter financial matters include:

  -- The company, including Real Estate and Related Assets, reduced
     outstanding debt by approximately $270 million to approximately
     $11.4 billion at the end of the quarter. In addition, cash and
     short-term investments increased by approximately $500 million in the
     third quarter due primarily to strong cash flows from operations and
     proceeds from the sale of timberlands in Georgia. The $1.2 billion
     balance of cash and short-term investments as of the end of the third
     quarter is largely expected to be applied to future debt repayment.
  -- Capital spending, excluding Real Estate and Related Assets, for the
     first three quarters of 2004 was approximately $275 million.

"Our strong quarterly earnings reflect favourable market conditions and contributions from all our businesses," said Steven R. Rogel, chairman, president and chief executive officer. "Our employees continue to do an outstanding job containing costs, increasing productivity and improving efficiency. While we expect to see normal seasonal downturns in the fourth quarter, we are well positioned in our markets."

  SUMMARY OF THIRD QUARTER FINANCIAL HIGHLIGHTS

  Millions (except per share data)     3Q 2004      3Q 2003     Change
  Net earnings                            $594          $82       $512
  Diluted earnings per share             $2.45        $0.37      $2.08
  Net sales                             $5,849       $5,184       $665


  SEGMENT RESULTS FOR THIRD QUARTER 2004
  (Contributions to Pre-Tax Earnings)
  Millions                             3Q 2004      3Q 2003     Change
  Timberlands                             $450         $143       $307
  Wood Products                           $362         $151       $211
  Pulp and Paper                           $80        ($18)        $98
  Containerboard, Packaging and Recycling  $82          $42        $40
  Real Estate and Related Assets          $155          $97        $58


  DISCUSSION AND OUTLOOK BY BUSINESS SEGMENT
  TIMBERLANDS
                                       3Q 2004      2Q 2004     Change
  Contribution to earnings (millions)     $450         $201       $249


Third quarter earnings include a $271 million pre-tax gain on the previously announced sale of timberlands in Georgia. Excluding this gain, earnings declined $22 million from the second quarter, reflecting a normal seasonal reduction in harvest activity in the West and abnormally wet weather in the South. Aside from disruption due to wet weather, hurricanes caused minimal damage to our timberlands. Prices for logs in both domestic and export markets increased slightly from the prior quarter.

Fourth quarter earnings are expected to be similar to third quarter, excluding the third quarter sale of timberlands in Georgia.

  WOOD PRODUCTS
                                       3Q 2004     2Q 2004      Change
  Contribution to earnings (millions)     $362        $448       ($86)


Third quarter earnings of $362 million include a $20 million pre-tax gain from the tenure reallocation agreement with the British Columbia government, and a $20 million reduction in the reserve for hardboard siding claims. This compares to second quarter earnings of $448 million, which included a $16 million pre-tax charge from an adverse judgment in a lawsuit.

Housing starts remained high throughout the quarter, resulting in healthy demand for oriented strand board, plywood and lumber. Structural panel prices were volatile with average prices declining from the second quarter. In contrast, average prices for most lumber indicators were flat to slightly up from second quarter to third. The segment also benefited from earlier price increases in engineered lumber.

The segment incurred $31 million in countervailing and anti-dumping duties and related costs on Canadian softwood lumber the company sold into the United States in the third quarter. This compares to $34 million in the second quarter.

Fourth quarter earnings are expected to be lower than the third quarter, as lumber and structural panel prices decline from recent, very high levels.

  PULP AND PAPER
                                       3Q 2004     2Q 2004      Change
  Contribution to earnings (millions)      $80         $14         $66


Earnings increased during the quarter as uncoated free sheet paper prices improved across all product lines. Papergrade pulp prices increased during the quarter but have begun to decline. Fluff pulp prices improved early in the quarter and remained stable. Fine Paper prices strengthened throughout the quarter and are expected to continue to improve in the fourth quarter as a result of recent price increases.

Fourth quarter earnings are expected to be slightly lower than the third quarter -- despite stable fluff pulp markets and increases in paper prices -- due to weakening papergrade pulp markets and costs associated with scheduled maintenance downtime.

  CONTAINERBOARD, PACKAGING AND RECYCLING
                                       3Q 2004     2Q 2004      Change
  Contribution to earnings (millions)      $82         $62         $20


Earnings improved over second quarter levels due primarily to price increases for both containerboard and boxes, as well as slightly lower costs for old corrugated containers. Third quarter results include pre-tax charges of $12 million related to facility closures.

Customer demand for boxes is expected to remain healthy, but decline seasonally. The company expects higher fourth quarter earnings due primarily to increasing prices.

  REAL ESTATE AND RELATED ASSETS
                                       3Q 2004     2Q 2004      Change
  Contribution to earnings (millions)     $155        $118         $37


Third quarter earnings benefited from increased single-family home closings and higher margins, and from the sale of a multi-family site that generated a pre-tax gain of $18 million. The pace of single-family home sales during the third quarter declined seasonally compared to the prior quarter. However, the backlog of homes sold, but not closed, is approximately seven months.

Fourth quarter earnings are expected to modestly exceed the third quarter because of increased closing volume and strong margins.

OTHER

The company will hold a live conference call at 7 a.m. PDT (10 a.m. EDT) on Oct. 22 to discuss the third quarter results.

To access the conference call, listeners calling from within North America should dial 1-888-221-5699 at least 15 minutes prior to the start of the conference call. Those wishing to access the call from outside North America should dial 1-706-643-3795. Replays of the call will be available for one week following completion of the live call and can be accessed at 1-800-642-1687 (access code -- 1384680) within North America and at 1-706-645-9291 (access code -- 1384680) 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 (NYSE: WY), one of the world's largest integrated forest products companies, was incorporated in 1900. In 2003, sales were $27.8 billion ($19.9 billion US). 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.

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, demand and pricing for the company's products in the fourth quarter, debt repayment, capital spending, timber harvest in the fourth quarter, no major timberland sales in the fourth quarter, slowdown of housing construction in the fourth quarter, closings of home sales in the fourth quarter, scheduled maintenance downtime in the fourth quarter, new home sales and other matters. 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; disruption of transportation 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            Q1              Q2              Q3
                              March   March   June    June    Sept.   Sept.
    (in millions)              28,     30,     27,     29,     26,     28,
                              2004    2003    2004    2003    2004    2003
  Net sales and revenues:
    Weyerhaeuser (1)         $4,568  $4,169  $5,369  $4,498  $5,258  $4,650
    Real Estate and Related
     Assets                     469     445     524     432     591     534
  Total net sales and
   revenues                   5,037   4,614   5,893   4,930   5,849   5,184

  Costs and expenses:
    Weyerhaeuser:
      Costs of products sold  3,539   3,322   3,922   3,611   3,894   3,598
      Depreciation,
       amortization and fee
       stumpage                 325     321     328     313     326     320
      Selling expenses          121     107     122     111     125     117
      General and
       administrative
       expenses                 241     231     235     232     229     249
      Research and
       development expenses      12      12      13      12      13      10
      Taxes other than
       payroll and income
       taxes                     48      47      48      48      50      45
      Charges for
       integration and
       restructuring             15      29      13      25       8      24
      Charges for closure of
       facilities                 1      22      --      12      13      48
      Other operating costs,
       net  (2) (3)              14      37      42    (205)   (318)     16
                              4,316   4,128   4,723   4,159   4,340   4,427
    Real Estate and Related
     Assets:
      Costs and operating
       expenses                 321     330     381     316     414     406
      Depreciation and
       amortization               2       3       4       2       3       3
      Selling expenses           27      24      30      25      31      27
      General and
       administrative
       expenses                  17      14      19      14      19      15
      Taxes other than
       payroll and income
       taxes                      1       1      --       1       1       0
      Other operating costs,
       net                        1      (7)      1      --     (19)      2
                                369     365     435     358     449     453
  Total costs and expenses    4,685   4,493   5,158   4,517   4,789   4,880

  Operating income              352     121     735     413   1,060     304

  Interest expense and
   other:
    Weyerhaeuser:
      Interest expense
       incurred (4)            (195)   (208)   (218)   (205)   (184)   (200)
      Less interest
       capitalized                3       5       1       6       0       3
      Equity in income
       (loss) of affiliates      --      (5)      7       3       4      (3)
      Interest income and
       other                      3       6       5       6       7       3
    Real Estate and Related
     Assets:
      Interest expense
       incurred                 (15)    (14)    (14)    (13)    (14)    (13)
      Less interest
       capitalized               15      14      14      13      14      13
      Equity in income of
       unconsolidated
       entities                   9       5      20       7      12      11
      Interest income and
       other                     11      11       9       8       1       6
  Earnings before income
   taxes and cumulative
   effect  of a change
   in accounting principle      183     (65)    559     238     900     124
  Income taxes                  (62)     22    (190)    (81)   (306)    (42)
  Earnings before cumulative
   effect of a change in
   accounting principle         121     (43)    369     157     594      82
  Cumulative effect of a
   change in accounting
   principle, net of
   applicable taxes of $6(5)     --     (11)     --      --      --      --
  Net earnings (loss)          $121    $(54)   $369    $157    $594     $82

  Basic net earnings (loss)
   per share:
    Net earnings (loss)
     before cumulative
     effect of a change
     in accounting
     principle                $0.54  $(0.19)  $1.57   $0.71   $2.46   $0.37

    Cumulative effect of a
     change in accounting
     principle                   --   (0.05)     --      --      --      --
    Net earnings (loss)       $0.54  $(0.24)  $1.57   $0.71   $2.46   $0.37

  Diluted net earnings
   (loss) per share:
    Net earnings (loss)
     before cumulative
     effect of a change
     in accounting
     principle                $0.54  $(0.19)  $1.57   $0.71   $2.45   $0.37

    Cumulative effect of a
     change in accounting
     principle                   --   (0.05)     --      --      --      --
    Net earnings (loss)       $0.54  $(0.24)  $1.57   $0.71   $2.45   $0.37

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

                                                                     Year
  CONSOLIDATED EARNINGS                     Year-to-date      Q4    Ended
      (in millions)                         Sept.   Sept.    Dec.    Dec.
                                             26,     28,      28,     28,
                                            2004    2003     2003    2003
  Net sales and revenues:
      Weyerhaeuser (1)                    $15,195  $13,317  $4,527  $17,844
      Real Estate and Related Assets        1,584    1,411     618    2,029
  Total net sales and revenues             16,779   14,728   5,145   19,873

  Costs and expenses:
      Weyerhaeuser:
        Costs of products sold             11,355   10,531   3,547   14,078
        Depreciation, amortization and
         fee stumpage                         979      954     353    1,307
        Selling expenses                      368      335     122      457
        General and administrative
         expenses                             705      712     238      950
        Research and development expenses      38       34      17       51
        Taxes other than payroll and
         income taxes                         146      140      45      185
        Charges for integration and
         restructuring                         36       78      25      103
        Charges for closure of facilities      14       82      45      127
        Other operating costs, net (2)
         (3)                                 (262)    (152)    (92)    (244)
                                           13,379   12,714   4,300   17,014
      Real Estate and Related Assets:
        Costs and operating expenses        1,116    1,052     464    1,516
        Depreciation and amortization           9        8       3       11
        Selling expenses                       88       76      31      107
        General and administrative
         expenses                              55       43      20       63
        Taxes other than payroll and
         income taxes                           2        2       1        3
        Other operating costs, net            (17)      (5)     (4)      (9)
                                            1,253    1,176     515    1,691
  Total costs and expenses                 14,632   13,890   4,815   18,705

  Operating income                          2,147      838     330    1,168

  Interest expense and other:
      Weyerhaeuser:
        Interest expense incurred (4)        (597)    (613)   (202)    (815)
        Less interest capitalized               4       14       5       19
        Equity in income (loss) of
         affiliates                            11       (5)     (1)      (6)
        Interest income and other              15       15       2       17
      Real Estate and Related Assets:
        Interest expense incurred             (43)     (40)    (13)     (53)
        Less interest capitalized              43       40      13       53
        Equity in income of unconsolidated
         entities                              41       23      (3)      20
        Interest income and other              21       25       8       33
  Earnings before income taxes and
   cumulative effect of a change in
   accounting principle                     1,642      297     139      436
  Income taxes                               (558)    (101)    (47)    (148)
  Earnings before cumulative effect of a
   change in accounting principle           1,084      196      92      288
  Cumulative effect of a change in
   accounting principle, net of
   applicable taxes of $6 (5)                  --      (11)     --      (11)
  Net earnings (loss)                      $1,084     $185     $92     $277

  Basic net earnings (loss) per share:
      Net earnings (loss) before
       cumulative effect of a change
       in accounting principle              $4.65    $0.88   $0.41    $1.30

      Cumulative effect of a change in
       accounting principle                    --    (0.05)     --    (0.05)
      Net earnings (loss)                   $4.65    $0.83   $0.41    $1.25

  Diluted net earnings (loss) per share:
      Net earnings (loss) before
       cumulative effect of a change in
       accounting principle                 $4.62    $0.88   $0.41    $1.30

      Cumulative effect of a change in
       accounting principle                    --    (0.05)     --    (0.05)
      Net earnings (loss)                   $4.62    $0.83   $0.41    $1.25

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

   (1) The first, second and third quarters of 2004 include charges of
       $26 million, $34 million and $31 million, respectively, or
       $91 million year-to-date, for countervailing and anti-dumping duties
       and related costs.  The first, second, third and fourth quarters of
       2003 include charges of $24 million, $26 million, $25 million, and
       $22 million, respectively, or a total of $97 million for the year,
       for countervailing and anti-dumping duties and related costs.
   (2) The first, second and third quarters of 2004 include net foreign
       exchange gain (losses) of ($9) million, ($7) million and $16 million,
       respectively, for a total year-to-date net gain (loss) of zero.  The
       2003 first, second, third and fourth quarters include net foreign
       exchange gains (losses) of $35 million, $47 million, ($4) million,
       and $30 million, respectively, for a total net gain of $108 million
       for the year. These gains and losses result primarily from
       fluctuations in Canadian and New Zealand exchange rates.
   (3) The first quarter of 2004 includes a $49 million charge for the
       settlement of lawsuits involving the market for Pacific Northwest
       alder logs and a $33 million gain on the sale of an oriented strand
       board mill in Slave Lake, Alberta. The second quarter includes a
       $16 million charge resulting from an adverse judgment in a lawsuit
       involving the market for Pacific Northwest alder logs. The third
       quarter includes a $271 million gain on the sale of timberlands in
       Georgia, a $25 million gain from a tenure reallocation agreement with
       the British Columbia government, and a $20 million gain due to the
       reduction of the reserve for hardboard siding claims. 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.  2003 fourth quarter
       includes a $61 million gain on the sales of timberlands in Tennessee
       and the Carolinas and an $8 million charge associated with the
       settlement of litigation related to workers compensation claims.
   (4) The second quarter of 2004 includes a $21 million charge for the
       early extinguishment of debt.
   (5) Statement of Financial Accounting Standards No. 143, Accounting for
       Asset Retirement Obligations, was adopted as of the beginning of
       2003.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  Net sales and revenues (in
  millions):                        Q1              Q2              Q3
                              March   March    June    June    Sept.   Sept.
                                28,     30,     27,     29,     26,     28,
                               2004    2003    2004    2003    2004    2003
  Timberlands:
    Logs                       $193    $162    $211    $185    $197    $184
    Other products               58      80      66      61      51      62
                                251     242     277     246     248     246
  Wood Products:
    Softwood lumber             819     752   1,106     846   1,089     890
    Plywood                     221     165     263     173     237     219
    Veneer                       11       9      12       9      11       9
    Composite panels            108      90     133     104     138     100
    OSB                         338     167     456     227     341     345
    Hardwood lumber              81      80      94      86      83      75
    Engineered lumber
     products                   298     254     396     308     418     329
    Logs                         23      25      38      33      32      19
    Other products              248     216     294     262     295     251
                              2,147   1,758   2,792   2,048   2,644   2,237
  Pulp and Paper:
    Pulp                        339     309     371     321     381     333
    Paper                       535     596     538     546     583     530
    Coated groundwood            36      36      37      32      39      39
    Liquid packaging board       49      47      53      52      53      50
    Other products               10       6      13       6      15       5
                                969     994   1,012     957   1,071     957

  Containerboard, Packaging
   and Recycling:
    Containerboard               81      77      80      81      94      73
    Packaging                   853     879     918     922     916     898
    Recycling                    80      60      91      63      87      60
    Bags                         19      20      18      20      20      19
    Other products               33      33      34      35      43      40
                              1,066   1,069   1,141   1,121   1,160   1,090

  Real Estate and Related
   Assets                       469     445     524     432     591     534

  Corporate and Other           135     106     147     126     135     120

                             $5,037  $4,614  $5,893  $4,930  $5,849  $5,184


  Contribution (charge) to
   earnings:                        Q1              Q2              Q3
   (in millions)              March   March    June    June   Sept.   Sept.
                                28,     30,     27,     29,     26,     28,
                               2004    2003    2004    2003    2004    2003
  Timberlands (1)              $159    $149    $201    $300    $450    $143
  Wood Products (2) (3) (4)
   (5)                          173    (150)    448     (53)    362     151
  Pulp and Paper (6)            (25)     10      14      (7)     80     (18)
  Containerboard, Packaging
   and Recycling (7) (8)         24      80      62     108      82      42
  Real Estate and Related
   Assets (9)                   120      95     118      91     155      97
  Corporate and Other  (10)
   (11) (12)                    (76)    (46)    (67)     (2)    (45)    (94)
                               $375    $138    $776    $437  $1,084    $321

                                                                       Year
  Net sales and revenues (in millions):      Year-to-date      Q4     Ended
                                            Sept.    Sept.    Dec.     Dec.
                                             26,      28,      28,      28,
                                            2004     2003     2003     2003
  Timberlands:
      Logs                                   $601     $531    $199     $730
      Other products                          175      203      61      264
                                              776      734     260      994
  Wood Products:
      Softwood lumber                       3,014    2,488     793    3,281
      Plywood                                 721      557     227      784
      Veneer                                   34       27      12       39
      Composite panels                        379      294      99      393
      OSB                                   1,135      739     370    1,109
      Hardwood lumber                         258      241      79      320
      Engineered lumber products            1,112      891     288    1,179
      Logs                                     93       77      28      105
      Other products                          837      729     246      975
                                            7,583    6,043   2,142    8,185
  Pulp and Paper:
      Pulp                                  1,091      963     342    1,305
      Paper                                 1,656    1,672     510    2,182
      Coated groundwood                       112      107      33      140
      Liquid packaging board                  155      149      49      198
      Other products                           38       17       9       26
                                            3,052    2,908     943    3,851

  Containerboard, Packaging and
   Recycling:
      Containerboard                          255      231      73      304
      Packaging                             2,687    2,699     845    3,544
      Recycling                               258      183      64      247
      Bags                                     57       59      21       80
      Other products                          110      108      39      147
                                            3,367    3,280   1,042    4,322

  Real Estate and Related Assets            1,584    1,411     618    2,029

  Corporate and Other                         417      352     140      492

                                          $16,779  $14,728  $5,145  $19,873


  Contribution (charge) to earnings:                                   Year
  (in millions)                              Year-to-date      Q4     Ended
                                             Sept.    Sept.   Dec.     Dec.
                                              26,      28,     28,      28,
                                             2004     2003    2003     2003
  Timberlands (1)                            $810     $592    $185     $777
  Wood Products (2) (3) (4) (5)               983      (52)    111       59
  Pulp and Paper (6)                           69      (15)    (67)     (82)
  Containerboard, Packaging and Recycling
   (7) (8)                                    168      230      32      262
  Real Estate and Related Assets (9)          393      283     109      392
  Corporate and Other  (10) (11) (12)        (188)    (142)    (34)    (176)
                                           $2,235     $896    $336   $1,232

   (1) The 2004 third quarter includes a $271 million gain on the sale of
       timberlands in Georgia and a $5 million gain from a tenure
       reallocation agreement with the British Columbia government.  The
       2003 second quarter includes a $144 million gain on the sales of
       timberlands in Washington state.  The 2003 fourth quarter includes a
       $61 million gain on the sale of timberlands in Tennessee and the
       Carolinas.
   (2) The first, second and third quarters of 2004 include charges of
       $26 million, $34 million and $31 million, respectively, or $91
       million year-to-date, for countervailing and anti-dumping duties and
       related costs.  The first, second, third and fourth quarters of 2003
       include charges of $24 million, $26 million, $25 million, and
       $22 million, respectively, or a total of $97 million for the year,
       for countervailing and anti-dumping duties and related costs.
   (3) The first quarter of 2004 includes a $49 million charge for the
       settlement of lawsuits involving the market for Pacific Northwest
       alder logs. The second quarter of 2004 includes a $16 million charge
       resulting from an adverse judgment in a lawsuit involving the market
       for Pacific Northwest alder logs. The third quarter of 2004 includes
       a $20 million gain due to the reduction of the reserve for hardboard
       siding claims. The first quarter of 2003 includes a $79 million
       charge for a lawsuit involving the market for Pacific Northwest alder
       logs.
   (4) The third quarter of 2004 includes a $20 million gain from a tenure
       reallocation agreement with the British Columbia government.
   (5) The first quarter of 2004 includes a credit of $2 million for the
       reversal of closure costs accrued in prior years and a $33 million
       gain on the sale of an oriented strand board mill in Slave Lake,
       Alberta. The second quarter of 2004 includes a $5 million net loss on
       the sale of facilities. The third quarter of 2004 includes a
       $2 million net gain on the sale or closure of facilities.  The 2003
       first, second, third and fourth quarters include costs for the
       closure of facilities of $22 million, $11 million, $31 million, and
       $14 million, respectively.  2003 second quarter also includes a
       charge of $16 million to recognize impairment associated with an
       impending facility sale that closed in the fourth quarter of 2003.
   (6) The 2004 second quarter includes a $2 million asset impairment charge
       related to assets held for sale.  2003 second quarter includes
       $3 million of closure costs.  2003 fourth quarter includes
       $30 million of closure costs.
   (7) The third quarter of 2003 includes a $23 million charge associated
       with the settlement of a class action linerboard antitrust lawsuit.
   (8) The first quarter of 2004 includes closure costs of $3 million.  The
       second quarter of 2004 includes a net gain of $1 million on the sales
       of a facility and a joint venture investment.  The third quarter of
       2004 includes closure costs of $12 million, including a pension
       termination charge of $9 million related to a closure that occurred
       in a previous year.  The 2003 second quarter includes the reversal of
       an accrual for closure charges of $2 million.  The 2003 third and
       fourth quarters include closure costs of $17 million and $1 million,
       respectively.
   (9) The first quarter of 2004 includes a $22 million gain on a land sale.
       The third quarter of 2004 includes a gain of $18 million on the sale
       of a multi-family site.  The 2003 first quarter includes gains of
       $8 million for the sale of two office buildings and $10 for the sale
       of an apartment complex.  The 2003 second quarter includes a gain of
       $12 million for the sale of commercial property.  The 2003 fourth
       quarter includes a $7 million gain on an acreage sale.
  (10) The 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.
  (11) The 2003 second quarter includes a $25 million gain for the
       settlement of an insurance claim relating to the Cemwood litigation.
       The 2003 fourth quarter includes an $8 million charge for the
       settlement of litigation related to workers compensation claims.
  (12) The first, second and third quarters of 2004 include net foreign
       exchange gains (losses) of ($10) million, ($6) million and
       $16 million, for a net zero gain (loss) year-to-date.  2003 results
       include net foreign exchange gains (losses) of $35 million in the
       first quarter, $46 million in the second quarter, ($4) million in the
       third quarter, and $30 million in the fourth quarter, for a net 2003
       gain of $107 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.
                                28,     30,     27,     29,     26,     28,
                               2004    2003    2004    2003    2004    2003
  Timberlands (thousands):
    Logs - cunits             1,044     984     954   1,006     904     987

  Wood Products (millions):
    Softwood lumber - board
     feet                     2,054   2,175   2,393   2,385   2,299   2,298
    Plywood  - square feet
     (3/8")                     642     664     668     697     672     688
    Veneer - square feet
     (3/8")                      55      62      60      63      55      56
    Composite panels -
     square feet (3/4")         301     267     324     304     315     302
    Oriented strand board -
     square feet (3/8")         981   1,025   1,143   1,206   1,078   1,129
    Hardwood lumber - board
     feet                       100     106     116     113      99     103
    Logs - cunits (in
     thousands)                 170     170     279     230     237     189

  Pulp and Paper (thousands):
    Pulp - air-dry metric
     tons                       624     623     642     596     633     632
    Paper - tons                741     737     718     690     737     707
    Coated groundwood - tons     59      61      61      55      60      64
    Liquid packaging board
     - tons                      66      60      72      67      69      64
    Paper converting - tons     483     502     472     472     481     478

  Containerboard, Packaging
   and Recycling
   (thousands):
    Containerboard - tons       250     221     221     233     245     214
    Packaging - MSF          18,146  17,752  18,917  18,577  18,287  18,545
    Recycling - tons            678     593     701     566     645     538
    Kraft bags and sacks -
     tons                        24      25      23      24      23      25

  Real Estate and Related
   Assets:
    Single-family homes sold  1,506   1,289   1,564   1,321   1,313   1,239
    Single-family homes
     closed                   1,065   1,010   1,216   1,003   1,345   1,182
    Single-family homes sold
     but not closed at end
     of period                2,702   2,161   3,050   2,479   3,018   2,536

                                                                     Year
  Third party sales volumes:               Year-to-date      Q4     Ended
                                          Sept.   Sept.     Dec.     Dec.
                                           26,      28,      28,      28,
                                          2004     2003     2003     2003
  Timberlands (thousands):
     Logs - cunits                        2,902    2,977    1,148    4,125

  Wood Products (millions):
     Softwood lumber - board feet         6,746    6,858    2,123    8,981
     Plywood  - square feet (3/8")        1,982    2,049      616    2,665
     Veneer - square feet (3/8")            170      181       58      239
     Composite panels - square feet
      (3/4")                                940      873      289    1,162
     Oriented strand board - square
      feet (3/8")                         3,202    3,360    1,001    4,361
     Hardwood lumber - board feet           315      322      105      427
     Logs - cunits (in thousands)           686      589      210      799

  Pulp and Paper (thousands):
     Pulp - air-dry metric tons           1,899    1,851      628    2,479
     Paper - tons                         2,196    2,134      688    2,822
     Coated groundwood - tons               180      180       54      234
     Liquid packaging board  - tons         207      191       65      256
     Paper converting - tons              1,436    1,452      430    1,882

  Containerboard, Packaging and
   Recycling (thousands):
     Containerboard - tons                  716      668      222      890
     Packaging - MSF                     55,350   54,874   17,867   72,741
     Recycling - tons                     2,024    1,697      593    2,290
     Kraft bags and sacks - tons             70       74       26      100

  Real Estate and Related Assets:
     Single-family homes sold             4,383    3,849    1,156    5,005
     Single-family homes closed           3,626    3,195    1,431    4,626
     Single-family homes sold but not
      closed at end of period             3,018    2,536    2,261    2,261


  Total production volumes:         Q1              Q2              Q3
                              March   March    June    June    Sept.   Sept.
                                28,     30,     27,     29,     26,     28,
                               2004    2003    2004    2003    2004    2003
  Timberlands (thousands):
    Fee Depletion - cunits    2,265   2,555   2,404   2,479   2,191   2,223

  Wood Products (millions):
    Softwood lumber - board
     feet                     1,760   1,842   1,881   1,825   1,819   1,742
    Plywood - square feet
     (3/8")                     422     478     405     412     405     414
    Veneer - square feet
     (3/8") (1)                 585     593     609     536     592     536
    Composite panels -
     square feet (3/4")         268     231     281     252     272     253
    Oriented strand board -
     square feet (3/8")       1,031   1,011   1,056   1,051   1,022   1,061
    Hardwood lumber - board
     feet                        89      98      96      93      84      93

  Pulp and Paper (thousands):
    Pulp - air-dry metric
     tons                       619     654     636     619     652     604
    Paper - tons (2)            743     757     736     712     766     706
    Coated groundwood - tons     55      62      61      55      62      61
    Liquid packaging board
     - tons                      61      56      67      68      71      72
    Paper converting - tons     490     516     470     479     500     472

  Containerboard, Packaging
   and Recycling (thousands):
    Containerboard - tons(3)  1,503   1,429   1,598   1,568   1,604   1,512
    Packaging - MSF          19,493  18,977  20,208  19,955  19,473  19,865
    Recycling - tons (4)      1,607   1,528   1,707   1,644   1,703   1,507
    Kraft bags and sacks -
     tons                        24      25      23      25      23      23

  Total production volumes:                                           Year
                                           Year-to-date       Q4     Ended
                                          Sept.    Sept.     Dec.     Dec.
                                            26,      28,      28,      28,
                                           2004     2003     2003     2003
  Timberlands (thousands):
     Fee Depletion  - cunits              6,860    7,257    2,171    9,428

  Wood Products (millions):
     Softwood lumber - board feet         5,460    5,409    1,704    7,113
     Plywood - square feet (3/8")         1,232    1,304      404    1,708
     Veneer - square feet (3/8") (1)      1,786    1,665      534    2,199
     Composite panels - square feet
      (3/4")                                821      736      252      988
     Oriented strand board - square
      feet (3/8")                         3,109    3,123    1,047    4,170
     Hardwood lumber - board feet           269      284       89      373

  Pulp and Paper (thousands):
     Pulp - air-dry metric tons           1,907    1,877      645    2,522
     Paper - tons (2)                     2,245    2,175      658    2,833
     Coated groundwood - tons               178      178       61      239
     Liquid packaging board  - tons         199      196       65      261
     Paper converting - tons              1,460    1,467      415    1,882

  Containerboard, Packaging and
   Recycling (thousands):
     Containerboard - tons (3)            4,705    4,509    1,494    6,003
     Packaging - MSF                     59,174   58,797   19,033   77,830
     Recycling - tons (4)                 5,017    4,679    1,537    6,216
     Kraft bags and sacks - tons             70       73       25       98

   (1) Veneer production represents lathe production and includes volumes
       that are further processed into plywood and engineered lumber
       products by company mills.
   (2) Paper production includes unprocessed rolls and converted paper
       volumes.
   (3) Containerboard production represents machine production and includes
       volumes that are further processed into packaging by company
       facilities.
   (4) Recycling production includes volumes processed in Weyerhaeuser
       recycling facilities and brokered volumes.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION

  CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
                   (in millions)
                                          March     June     Sept.    Dec.
                                            28,      27,      26,      28,
  Assets                                   2004     2004     2004     2003

  Weyerhaeuser
     Current assets:
       Cash and short-term investments       $74     $725   $1,227     $171
       Receivables, less allowances        1,701    1,860    1,804    1,484
       Inventories                         2,020    1,936    1,998    1,911
       Prepaid expenses                      471      488      527      455
         Total current assets              4,266    5,009    5,556    4,021
     Property and equipment               12,141   11,883   11,838   12,243
     Construction in progress                251      279      242      403
     Timber and timberlands at cost,
      less fee stumpage charged
      to disposals                         4,279    4,244    4,193    4,287
     Investments in and advances to
      equity affiliates                      603      592      632      603
     Goodwill                              3,232    3,218    3,241    3,237
     Deferred pension and other assets     1,287    1,273    1,243    1,311
                                          26,059   26,498   26,945   26,105

  Real Estate and Related Assets           2,078    2,225    2,339    2,004

     Total assets                        $28,137  $28,723  $29,284  $28,109

  Liabilities and Shareholders' Interest

  Weyerhaeuser
     Current liabilities:
       Notes payable and commercial
        paper                               $103       $2       $3       $4
       Current maturities of long-term
        debt                               1,129      445      490       90
       Accounts payable                    1,065    1,114    1,102    1,041
       Accrued liabilities                 1,212    1,323    1,337    1,390
             Total current liabilities     3,509    2,884    2,932    2,525
     Long-term debt                       10,399   10,325   10,010   11,503
     Deferred income taxes, pension,
      other postretirement benefits
      and other liabilities                5,694    5,789    5,880    5,671
                                          19,602   18,998   18,822   19,699
  Real Estate and Related Assets
     Notes payable and commercial paper       78       --       --        1
     Long-term debt                          887      872      869      893
     Other liabilities                       356      443      534      407
                                           1,321    1,315    1,403    1,301
     Total liabilities                    20,923   20,313   20,225   21,000

     Shareholders' interest                7,214    8,410    9,059    7,109

     Total liabilities and shareholders'
      interest                           $28,137  $28,723  $29,284  $28,109



  STATEMENT OF CASH FLOWS                   Q1           Q2          Q3
                                       March  March  June  June  Sept. Sept.
  SELECTED INFORMATION (unaudited)       28,    30,   27,   29,   26,   28,
     (in millions)                      2004   2003  2004  2003  2004  2003
  (Weyerhaeuser only, excludes Real
   Estate & Related Assets)

     Net cash from operations          $(120) $(126) $807  $397  $586  $557
     Cash paid for property and
      equipment                          (79)  (128)  (80) (172)  (93) (146)
     Cash paid for timberlands
      reforestation                      (12)   (14)   (6)   (5)   (5)   (6)
     Cash received from issuances of
      debt                                --      1    --    --    --    12
     Revolving credit facilities,
      notes and commercial paper
      borrowings, net                     98    599  (100) (333)   --   166
     Payments on debt                    (60)  (251) (813)  (14) (253) (509)
     Proceeds from equity offering        --     --   954    --    --    --


  STATEMENT OF CASH FLOWS                                             Year
                                            Year-to-date     Q4      Ended
                                            Sept.   Sept.   Dec.      Dec.
  SELECTED INFORMATION (unaudited)           26,     28,     28,       28,
      (in millions)                         2004    2003    2003      2003
  (Weyerhaeuser only, excludes Real
   Estate & Related Assets)

      Net cash from operations            $1,273    $828    $821    $1,649
      Cash paid for property and
       equipment                            (252)   (446)   (146)     (592)
      Cash paid for timberlands
       reforestation                         (23)    (25)     (9)      (34)
      Cash received from issuances of
       debt                                   --      13      31        44
      Revolving credit facilities,
       notes and commercial paper
       borrowings, net                        (2)    432    (750)     (318)
      Payments on debt                    (1,126)   (774)    (50)     (824)
      Proceeds from equity offering          954      --      --        --
Photo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a
http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Weyerhaeuser Company

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

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


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