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Weyerhaeuser Acquires Sawmill in Brazil in New Joint Venture

PRNewswire-FirstCall
FEDERAL WAY, Wash.
Oct 29, 2004

Weyerhaeuser Company (NYSE: WY) today announced that it has acquired a two-thirds ownership in Aracruz Produtos de Madeira S.A., a subsidiary of Aracruz Cellulose S.A. Terms were not disclosed.

  (Photo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a
          http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b )

APM operates a hardwood sawmill in the Bahia region of Brazil. The joint venture will produce Lyptus® lumber to be used in furniture, flooring, cabinetry and other appearance applications. Lyptus comes from a Eucalyptus hybrid that is grown on plantations. One-third of the area is kept in native vegetation to help maintain elements of the natural ecosystem.

"Our experience in Australia, New Zealand and Uruguay has shown that the Southern Hemisphere contains ideal operating environments for us," said Steven R. Rogel, Weyerhaeuser chairman, president and chief executive officer. "Expanding into Brazil builds on this experience and enhances our ability to serve global customers and to meet the growing needs of the Southern Hemisphere."

Weyerhaeuser currently has limited operations in South America and other regions in the Southern Hemisphere. In South America, Weyerhaeuser manages over 315,000 acres (127,500 hectares) of forestland in Uruguay. Weyerhaeuser also owns or manages forestland and manufacturing operations in Australia and New Zealand.

In North America, Weyerhaeuser operates 13 hardwood mills with a total capacity to produce 452 million board feet annually.

Weyerhaeuser Brasil Participacoes Ltda., a wholly owned subsidiary of Weyerhaeuser, will own 66 2/3 percent of the APM S.A. A Brazilian company, Aracruz Cellulose S.A., will own 33 1/3 percent. Material produced by APM will go to the Brazilian domestic market, and be distributed in North America, Asia and Europe by Northwest Hardwoods and Weyerhaeuser Building Materials.

Sam Dickey, former mill manager at Weyerhaeuser's Northwest Hardwoods business in Eugene, Ore., will relocate to Brazil and serve as the general manager of the mill and chief executive officer of the joint venture. Dickey has more than 37 years of experience in the forest products industry and has worked on international projects in Australia, Brazil, Japan, Mexico and Canada.

Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2003, sales were $19.9 billion. It has offices or operations in 19 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. Additional information about Weyerhaeuser's businesses, products and practices is available at www.weyerhaeuser.com.

Aracruz Celulose S.A., with operations in the Brazilian states of Espirito Santo, Bahia, Minas Gerais and Rio Grande do Sul, is the world's largest producer of bleached eucalyptus Kraft pulp. All of the high-quality hardwood pulp and lumber supplied by the company is produced exclusively from planted eucalyptus forests. The Aracruz pulp is used to manufacture a wide range of consumer and value-added products, including premium tissue and top quality printing and specialty papers. The lumber, produced in a high-tech sawmill located in the extreme south of the State of Bahia, is sold to the furniture and interior design industries in Brazil and abroad under the name Lyptus®. Aracruz is listed on the Sao Paulo Stock Exchange (BOVESPA), on the Latin America Securities Market (Latibex) in Madrid, Spain, and on the New York Stock Exchange (NYSE) under the ADR level III program (ticker symbol ARA). Each ADR represents 10 underlying class B preferred shares.

   For more information contact:

   Media -- Frank Mendizabal  253-924-3357
   Analysts -- Kathryn McAuley  253-924-2058
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, Frank Mendizabal, +1-253-924-3357, or analysts,
Kathryn McAuley, +1-253-924-2058, both of Weyerhaeuser Company

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


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