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Plum Creek Announces Tax Treatment for 2006 Dividend

Jan 16, 2007

SEATTLE--(BUSINESS WIRE)--Jan. 16, 2007--Plum Creek TimberCompany, Inc. (NYSE:PCL) today announced the tax treatment fordividend distributions made in 2006 on its Common Stock.

For shareholders of Plum Creek Timber Company, Inc. stock, thetotal dividend distribution of $1.60 per share is classified forincome tax purposes as follows: $1.60 (100 percent) is classified asCapital Gain Dividend -15 percent tax rate.

The table below summarizes the income tax treatment of thecompany's 2006 dividends:

    2006 Dividend Tax Reporting Information (Form 1099-DIV)    Plum Creek Timber Company, Inc.    Common Stock    CUSIP # 729251108    Ticker Symbol: PCL                February       May         August      November               Distribution Distribution Distribution Distribution------------------------------------------------------------------Capital Gain Distributions(long-term 15% rate)           100.00000%   100.00000%   100.00000%   100.00000%------------------------------------------------------------------Nondividend Distributions(return of capital)          0.00000%     0.00000%     0.00000%     0.00000%------------------------------------------------------------------Total            100.00000%   100.00000%   100.00000%   100.00000%------------------------------------------------------------------                Total------------------------Capital Gain Distributions(long-term 15% rate)        100.00000%------------------------Nondividend Distributions(return of capital)       0.00000%------------------------Total         100.00000%------------------------

Plum Creek is the largest and most geographically diverse privatelandowner in the nation with more than 8 million acres of timberlandsin major timber producing regions of the United States and 10 woodproducts manufacturing facilities in the Northwest.

CONTACT: Plum Creek Timber Company, Inc.
Investors
John Hobbs, 800-858-5347
or
Media
Kathy Budinick, 206-467-3620

SOURCE: Plum Creek Timber Company, Inc.

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