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Weyerhaeuser Reports Fourth Quarter Net Earnings of $126 Million, Or 57 Cents Per Share, on Net Sales of $4.7 Billion

PRNewswire-FirstCall
FEDERAL WAY, Wash.
Feb 3, 2003

Weyerhaeuser Company (NYSE: WY) today reported net earnings for the fourth quarter of $126 million, or 57 cents per share, which includes the net benefit of unusual after-tax items of $38 million, or 16 cents per share.

This compares with a loss of $15 million, or 7 cents per share, for the same period last year. Last year's fourth quarter net earnings included unusual after-tax charges of $20 million, or 9 cents per share, associated with the closure of three wood products facilities.

For the full year, Weyerhaeuser reported net earnings of $241 million, or $1.09 per share, including unusual after tax charges of $55 million, or 25 cents, on net sales of $18.5 billion. This compares with net earnings of $354 million, or $1.61 per share, including unusual after tax charges of $57 million, or 26 cents per share, on net sales of $14.5 billion for 2001.

  The unusual items for the fourth quarter 2002 include:

  --    $65 million after tax, or 29 cents per share, gain on the sale of
        timberlands in Washington state, net of costs associated with the
        sale and the closure of related Wood Products and Timberlands
        operations.
  --    $26 million after tax, or 11 cents per share, benefit from insurance
        proceeds covering business disruption costs at the Plymouth, N.C.,
        paper facility for previous quarters.  The facility resumed normal
        operation in the third quarter.
  --    $23 million after tax, or 10 cents per share, charge for the
        termination of the former MacMillan Bloedel pension plan for U.S.
        employees.
  --    $19 million after tax, or 9 cents per share, cost associated with
        the acquisition and integration of Willamette Industries.
        Weyerhaeuser said it continues to make progress on capturing
        synergies following the Willamette acquisition.  At the end of the
        fourth quarter, Weyerhaeuser estimates it has achieved an annualized
        run rate of $184 million in pretax synergies.  The company is
        confident it will achieve $300 million in pretax annual synergies by
        the end of first quarter 2005.
  --    $15 million after tax, or 7 cents per share, net charge associated
        with the closure of other facilities.
  --    $4 million, or 2 cents per share, after-tax net reduction in
        depreciation resulting from an adjustment to the preliminary
        purchase price allocation for the Willamette acquisition.

In addition, Weyerhaeuser incurred approximately $26 million in countervailing and anti-dumping duties, and related costs on Canadian softwood lumber the company imports into the United States. During 2002, the company incurred approximately $64 million in countervailing and anti-dumping duties, and related costs.

"We're delighted with how well our employees worked to bring two great companies together to create a strong foundation for the future," said Steven R. Rogel, chairman, president and chief executive officer. "During the fourth quarter, our Pulp and Paper, and Containerboard, Packaging and Recycling businesses produced improved operating results in difficult markets. Strong residential construction continues to drive excellent performance in our Real Estate business and demand for timber. Wood Products, however, continues to be a problem due to oversupplied markets and the uncertainty created by the Canadian softwood lumber issue.

"While the timing and strength of an economic recovery remains uncertain, Weyerhaeuser is well positioned to benefit from an economic recovery due to our efforts to reduce costs, rationalize production capacity, increase operating efficiency, and improve our service to customers," Rogel said.

  Summary of fourth quarter financial highlights:

  Millions (except per share data)          4Q 2002     4Q 2001    Change
  Net earnings                                $126       ($15)       $141
    Earnings per share (EPS)                 $0.57     ($0.07)      $0.64
  Net earnings excluding unusual items         $88         $5         $83
    EPS excluding unusual items              $0.41      $0.02       $0.39
  Net sales                                 $4,718     $3,398      $1,320

  Summary of financial highlights for the full year:

  Millions (except per share data)            2002       2001      Change
  Net earnings                                $241       $354      ($113)
    Earnings per share (EPS)                 $1.09      $1.61     ($0.52)
  Net earnings excluding unusual items        $296       $411      ($115)
    EPS excluding unusual items              $1.34      $1.87     ($0.53)
  Net sales                                $18,521    $14,545     $3,976

                 SEGMENT RESULTS FOR FOURTH QUARTER 2002
                    (Contributions to Pretax Earnings)

  Millions                                   4Q 2002    4Q 2001     Change
  Timberlands                                 $318       $109        $209
  Wood Products                               ($75)     ($107)        $32
  Pulp and Paper                               $86        ($3)        $89
  Containerboard, Packaging, Recycling        $114        $59         $55
  Real estate and related assets               $81        $58         $23

                               Timberlands
                                             4Q 2002    3Q 2002     Change
  Contribution to earnings (millions)         $318       $138       $180

Timberland dispositions and a stronger operating performance contributed to the increase from third quarter. Compared with the third quarter, domestic and export log prices were stable on higher volumes. Fourth quarter contributions include a pretax gain of $117 million from the previously announced sale of approximately 115,000 acres of Washington state timberlands. The purchase and sale agreement for the sale of an additional 100,000 acres of timberlands in Western Washington to a nonprofit trust announced in the first quarter 2002 has expired. Weyerhaeuser is discussing the potential sale of this property with several parties, including the trust, and expects to complete the sale this year.

The first quarter outlook for Timberlands earnings from operations is expected to be down from the fourth quarter due to slightly weaker prices in the West for domestic and export logs, and lower timberland dispositions.

                              Wood Products
                                              4Q 2002    3Q 2002     Change
  Contribution to earnings (millions)         ($75)      ($18)       ($57)

Depressed prices and the effects of the countervailing and anti-dumping duties continued to affect the Wood Products segment during the fourth quarter. Results also include a year-to-date reduction of $13 million in depreciation resulting from an adjustment to the preliminary purchase price allocation for the Willamette acquisition. Excluding unusual items, including the depreciation adjustment, the fourth quarter loss was $51 million compared with a loss of $18 million for the third quarter.

As part of the company's focus on improving the efficiency of its softwood lumber operations, Weyerhaeuser previously announced the closure of three facilities, which will eliminate 368 million board feet of sawmill capacity and associated finishing operations when they close in the first quarter.

The first quarter earnings outlook for Wood Products remains very uncertain due to continued oversupply in the market. Based on current prices, the company would expect losses from operations in the Wood Products segment in the first quarter to be consistent with the fourth quarter. Weyerhaeuser continues to work with the U.S. and Canadian governments in an attempt to develop a long-term solution on the softwood lumber issue. The company believes government and industry officials from both sides are making a good faith effort to reach a solution.

                              Pulp and Paper
                                             4Q 2002    3Q 2002     Change
  Contribution to earnings (millions)          $86        $10         $76

Fourth quarter earnings were up from the third quarter primarily due to higher prices for uncoated freesheet products, significantly increased pulp shipments and the insurance recovery for business interruption costs at the Plymouth, N.C., mill. These increases, however, were partially offset by seasonally lower shipments of uncoated freesheet and a year-to-date increase in depreciation of $19 million resulting from an adjustment to the preliminary purchase price allocation for the Willamette acquisition.

After adjusting fourth quarter results for the insurance recovery of $40 million, first quarter earnings are expected to be similar to fourth quarter levels. Uncoated freesheet markets are anticipated to remain steady while the company expects improvement in pulp prices to be offset by lower shipments.

                 Containerboard, Packaging and Recycling

                                             4Q 2002    3Q 2002     Change
  Contribution to earnings (millions)         $114        $88         $26

Increased earnings between the third and fourth quarters were primarily due to lower costs for recycled fiber used in the production of containerboard, higher box prices and a decrease in year-to-date depreciation of $14 million resulting from an adjustment to the preliminary purchase price allocation for the Willamette acquisition. Partially offsetting these increases were seasonally lower box shipments, 35,000 tons of market-related downtime and $14 million in pretax charges associated with previously announced plant closures.

As part of the company's focus on rationalizing its containerboard production, Weyerhaeuser previously announced the closure of the Sturgeon Falls, Ontario, containerboard mill during the fourth quarter which will eliminate approximately 100,000 tons of production.

First quarter operating earnings are expected to be lower than fourth quarter earnings due to higher anticipated levels of maintenance and market-related downtime, currently planned to be approximately 140,000 tons. Market conditions are expected to remain relatively stable.

                      Real estate and related assets

                                             4Q 2002     3Q 2002     Change
  Contribution to earnings (millions)          $81        $85         ($4)

The fourth quarter results are primarily from sales of single family homes, while third quarter earnings included a $14 million gain from the sale of an apartment complex. The improved earnings in the fourth quarter from sales of single family homes resulted from higher closings and margins.

First quarter earnings are expected to be unchanged from the fourth quarter.

Other

Pension Fund -- During 2002, Weyerhaeuser recognized non-cash pension income of $107 million after tax associated with its qualified defined benefit plans in the United States and Canada. In 2003, Weyerhaeuser expects to incur a non-cash $20 million after tax charge. This change is due to the poor performance of the financial markets, changes in pension fund benefits, a lower assumed rate of return on future earnings of the pension funds, lower discount rates on fund liabilities in the United States and Canada, and changes in assumptions on previously unamortized pension fund gains. These non-cash benefits and charges will be allocated as follows:

  Business Segment                                2002 Income   2003 Charge
                                                    (Actual)    (Estimated)
  Timberlands                                           6%             2%
  Wood Products                                        38%            61%
  Pulp and Paper                                       31%            33%
  Containerboard, Packaging and Recycling              14%             0%
  Real Estate and related assets                        3%             0%
  Corporate                                             8%             4%
        Total                                         100%           100%

Weyerhaeuser also recorded a $110 million non-cash charge to Shareholders' Interest in 2002 for additional minimum pension liability adjustments, primarily related to Canadian pension plans.

Weyerhaeuser anticipates it will not be required to make a cash contribution to its U.S. pension fund in 2003. The company expects to contribute approximately $13 million in cash to its Canadian fund.

Debt -- At year-end, total debt for Weyerhaeuser Company, excluding Real Estate and related assets, was $12.7 billion compared with $13.2 billion at the end of the third quarter. Total debt, including Real Estate and related assets, was $13.6 billion compared with $14.2 billion at the end of the third quarter. The company remains on target to achieve its debt reduction goals.

Capital Spending -- Capital spending was $960 million in 2002 and is expected to be approximately $750 million in 2003.

The company will hold a conference call at 8 a.m. PST (11 a.m. EST) on Jan. 22 to discuss the fourth quarter results.

To access the conference call, listeners calling from within North America should dial 1-888-789-0089 at least 15 minutes prior to the start of the conference call. Those wishing to access the call from outside North America should dial 1-416-695-5259. Replays of the call will be available for 48 hours following completion of the call and can be accessed at 1-888-509-0082 within North America and at 1-416-695-9731 from outside North America.

The call may also be accessed through Weyerhaeuser's Internet site at http://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 $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. 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 expected synergies from the Willamette acquisition, expected earnings and performance of the company's business segments during the first quarter, expected pension expenses and cash contributions, anticipated debt reduction, anticipated capital spending and expected timberland sales. 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; 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; the company's ability to successfully integrate and manage acquired businesses and to realize anticipated cost savings and synergies from this acquisition; the ability of acquired businesses to perform in accordance with the company's expectations; legal proceedings; performance of pension fund assets; and uncertainties related to execution of timberland sale agreements. 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.

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

  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  CONSOLIDATED EARNINGS (A)                   Q1                Q2
              (in millions)          March 31,  April 1, June 30,  July 1,
                                        2002     2001     2002     2001
  Net sales and revenues:
    Weyerhaeuser (B)                  $3,595    $3,219    $4,501    $3,471
    Real estate and related assets       396       334       421       371
  Total net sales and revenues         3,991     3,553     4,922     3,842

  Costs and expenses:
    Weyerhaeuser:
      Costs of products sold           2,831     2,492     3,519     2,644
      Depreciation, amortization
       and fee stumpage ©              264       211       311       214
      Selling expenses                   103        91       116       100
      General and
       administrative expenses           186       171       231       182
      Research and development expenses   12        13        13        14
      Taxes other than
       payroll and income taxes           38        37        53        38
      Other operating costs
       (income) net (D)(E)(F)              4        32       (27)       21
      Charges for integration
       of facilities                       2         9        23        10
      Charges for closure
       of facilities (G) (H)              27        --        28        --
                                       3,467     3,056     4,267     3,223

    Real estate and related assets:
      Costs and operating expenses       291       243       317       280
      Depreciation and amortization        2         1         1         2
      Selling expenses                    21        19        24        19
      General and
       administrative expenses            10        13        11        13
      Taxes other than
       payroll and income taxes            1         2         1         1
      Other operating costs, net          (8)       (1)        2        (1)
                                         317       277       356       314
  Total costs and expenses             3,784     3,333     4,623     3,537

  Operating income                       207       220       299       305

  Interest expense and other:
    Weyerhaeuser:
      Interest expense incurred (I)     (178)      (88)     (222)      (87)
      Less interest capitalized            4         4        16         6
      Equity in income
       (loss) of affiliates               (4)       15        (2)       15
      Interest income and other            5         6         6         4
    Real estate and related assets:
      Interest expense incurred          (13)      (19)      (13)      (18)
      Less interest capitalized           13        16        13        17
      Equity in income of
       unconsolidated entities             6        14         6         3
      Interest income and other            6         2         8         3
  Earnings before income taxes            46       170       111       248
  Income taxes (J)                       (16)      (63)      (39)      (77)
  Net earnings                           $30      $107       $72      $171

  Per share:
    Basic net earnings                 $0.14     $0.49     $0.32     $0.78

    Diluted net earnings               $0.14     $0.49     $0.32     $0.78

    Dividends paid                     $0.40     $0.40     $0.40     $0.40


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  CONSOLIDATED EARNINGS (A)                   Q3                Q4
              (in millions)          Sept. 29, Sept. 30, Dec. 29, Dec. 30,
                                        2002     2001      2002     2001
  Net sales and revenues:
    Weyerhaeuser (B)                  $4,422    $3,360    $4,253    $3,034
    Real estate and related assets       468       392       465       364
  Total net sales and revenues         4,890     3,752     4,718     3,398

  Costs and expenses:
    Weyerhaeuser:
      Costs of products sold           3,576     2,659     3,285     2,488
      Depreciation, amortization
       and fee stumpage ©              304       223       335       221
      Selling expenses                   116        95       115        94
      General and
       administrative expenses           201       148       229       162
      Research and development expenses   11        11        16        17
      Taxes other than
       payroll and income taxes           48        38        39        35
      Other operating costs
       (income), net (D) (E) (F)          19        24      (135)       (9)
      Charges for integration
       of facilities                      17         4        30        (2)
      Charges for closure
       of facilities (G) (H)              --        32        40        32
                                       4,292     3,234     3,954     3,038

    Real estate and related assets:
      Costs and operating expenses       359       301       359       284
      Depreciation and amortization        1         2         7         2
      Selling expenses                    23        23        22        20
      General and
       administrative expenses            14         4        13        12
      Taxes other than payroll
       and income taxes                    1         1         1         1
      Other operating costs, net           6        (2)       (1)       (2)
                                         404       329       401       317
  Total costs and expenses             4,696     3,563     4,355     3,355

  Operating income                       194       189       363        43

  Interest expense and other:
    Weyerhaeuser:
      Interest expense incurred (I)     (214)      (93)     (207)      (90)
      Less interest capitalized           16         6        14         3
      Equity in income
       (loss) of affiliates               (6)        5        (1)       (2)
      Interest income and other            9         4         8         9
    Real estate and related assets:
      Interest expense incurred          (12)      (17)      (15)      (14)
      Less interest capitalized           12        16        15        14
      Equity in income of
       unconsolidated entities            10         4         9         6
      Interest income and other           11         8         8         7
  Earnings before income taxes            20       122       194       (24)
  Income taxes (J)                        (7)      (31)      (68)        9
  Net earnings                           $13       $91      $126      $(15)

  Per share:
    Basic net earnings                 $0.06     $0.41     $0.57    ($0.07)

    Diluted net earnings               $0.06     $0.41     $0.57    ($0.07)

    Dividends paid                     $0.40     $0.40     $0.40      $0.40


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  CONSOLIDATED EARNINGS (A)                             Year ended
              (in millions)                       Dec. 29,        Dec. 30,
                                                    2002            2001
  Net sales and revenues:
    Weyerhaeuser (B)                              $16,771        $13,084
    Real estate and related assets                  1,750          1,461
  Total net sales and revenues                     18,521         14,545

  Costs and expenses:
    Weyerhaeuser:
      Costs of products sold                       13,211         10,283
      Depreciation, amortization
       and fee stumpage ©                         1,214            869
      Selling expenses                                450            380
      General and administrative expenses             847            663
      Research and development expenses                52             55
      Taxes other than payroll and income taxes       178            148
      Other operating costs
       (income), net (D) (E) (F)                     (139)            68
      Charges for integration of facilities            72             21
      Charges for closure of facilities  (G) (H)       95             64
                                                   15,980         12,551
  Real estate and related assets:
      Costs and operating expenses                  1,326          1,108
      Depreciation and amortization                    11              7
      Selling expenses                                 90             81
      General and administrative expenses              48             42
      Taxes other than payroll and income taxes         4              5
      Other operating costs, net                       (1)            (6)
                                                    1,478          1,237
  Total costs and expenses                         17,458         13,788

  Operating income                                  1,063            757

  Interest expense and other:
    Weyerhaeuser:
      Interest expense incurred (I)                  (821)          (358)
      Less interest capitalized                        50             19
      Equity in income (loss) of affiliates           (13)            33
      Interest income and other                        28             23
    Real estate and related assets:
      Interest expense incurred                       (53)           (68)
      Less interest capitalized                        53             63
      Equity in income of unconsolidated entities      31             27
      Interest income and other                        33             20
  Earnings before income taxes                        371            516
  Income taxes (J)                                   (130)          (162)
  Net earnings                                       $241           $354

  Per share:
      Basic net earnings                            $1.09           $1.61

      Diluted net earnings                          $1.09           $1.61

      Dividends paid                                $1.60           $1.60


  (A)   Certain reclassifications have been made to conform prior periods'
        data with the current presentation.
  (B)   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 quarter
        includes charges of $31 million and the 2002 fourth quarter includes
        charges of $26 million for countervailing and anti-dumping duties
        and related costs.  The year-to-date impact from countervailing and
        anti-dumping duties and related costs is a net charge of
        $17 million, including current year charges of $64 million, net of
        $47 million of credits related to the reversal of charges accrued in
        2001.  2001 includes charges for countervailing and anti-dumping
        duties and related costs of $30 million and $20 million in the third
        and fourth quarters respectively.
  ©   2001 includes $35 million of goodwill amortization through December.
        Goodwill amortization ceased as of the beginning of 2002.
  (D)   2002 includes $33 million in net foreign exchange gains.  Gains of
        $8 million and $27 million are included in the first and second
        quarters, respectively.  A loss of $16 million is included in the
        third quarter and a gain of $14 million is included in the fourth
        quarter.  Net foreign exchange losses through the fourth quarter of
        2001 were $12 million.
  (E)   2002 fourth quarter includes a $117 million gain on the sale of
        timberlands in Washington state.
  (F)   2001 costs include $10 million for costs associated with Westwood
        Shipping Line's transition to a new charter fleet, one-time costs of
        $41 million associated with information systems outsourcing and
        $21 million of additional costs to streamline and improve delivery
        of internal support services.  2001 fourth quarter also includes an
        $8 million benefit related to recovery of hardboard siding claims.
  (G)   2002 includes $27 million for first quarter costs associated with
        the closure of three facilities, $28 million for second quarter
        costs associated with the closure, or impending closure, of four
        additional facilities and $40 million for fourth quarter costs
        associated with the closure of three additional facilities, the
        outsourcing of Canadian logging operations and adjustments to prior
        closure costs.
  (H)   2001 includes $32 million for third quarter costs associated with
        machine closures at Springfield, Ore., and Longview, Wash. and
        $32 million for fourth quarter charges associated with the closure
        of three North American wood products facilities.
  (I)   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.
  (J)   2001 year-to-date includes $29 million in benefits reflecting
        one-time reductions in deferred taxes.  This includes a $14 million
        benefit due to a lower British Columbia provincial corporate tax
        rate that was enacted during the third quarter and a $15 million
        benefit due to a lower Canadian corporate tax rate that was enacted
        during the second quarter.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  Net sales and revenues (in millions):       Q1                  Q2
                                      March 31, April 1,  June 30,  July 1,
                                        2002      2001      2002       2001
  Timberlands:
      Raw materials
       (logs, timber and chips)         $144      $175      $186      $155
      Other products                      44        37        49        39
                                         188       212       235       194
  Wood products:
      Softwood lumber                    692       605       901       783
      Softwood plywood and veneer        135       102       173       125
      Oriented strand board, composite
       and other panels                  240       159       320       195
      Hardwood lumber                     76        78        81        75
      Engineered lumber products         253       218       315       309
      Raw materials
       (logs, timber and chips)          106       112       129       118
      Other products                     199       165       228       205
                                       1,701     1,439     2,147     1,810
  Pulp and Paper:
      Pulp                               280       321       297       277
      Paper                              416       287       563       246
      Coated groundwood                   30        35        30        35
      Bleached paperboard                 40        50        51        45
      Other products                       6        18        10         6
                                         772       711       951       609

  Containerboard, Packaging and Recycling:
      Containerboard                      73        92        90        87
      Packaging                          731       618       899       634
      Recycling                           48        63        51        57
      Other products                      47        43        90        39
                                         899       816     1,130       817

  Real estate and related assets         396       334       421       371

  Corporate and other                     35        41        38        41
                                      $3,991    $3,553    $4,922    $3,842

  Earnings before interest
  expense and income taxes (A)                 Q1                  Q2
      (in millions)                   March 31, April 1,  June 30,  July 1,
                                        2002      2001      2002      2001

  Timberlands (B)                       $119      $134      $175      $137
  Wood products © (D) (E)                9       (26)       64       102
  Pulp and Paper (F) (G)                   1        73       (15)       27
  Containerboard Packaging and
  Recycling (H) (I)                       58        94        75        68
  Real estate and related assets (J)      91        69        79        62
  Corporate and other (K) (L) (M)        (58)      (90)      (61)      (67)
                                        $220      $254      $317      $329


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  Net sales and revenues (in millions):       Q3                  Q4
                                     Sept. 29, Sept. 30,  Dec. 29,  Dec. 30,
                                        2002      2001      2002      2001
  Timberlands:
      Raw materials
       (logs, timber and chips)         $196      $140      $256      $147
      Other products                     138        44       107        48
                                         334       184       363       195
  Wood products:
      Softwood lumber                    845       743       748       620
      Softwood plywood and veneer        169       124       157       105
      Oriented strand board, composite
       and other panels                  217       210       251       177
      Hardwood lumber                     72        70        77        69
      Engineered lumber products         324       299       256       244
      Raw materials
       (logs, timber and chips)          120       107       117        96
      Other products                     210       198       181       182
                                       1,957     1,751     1,787     1,493
  Pulp and Paper:
      Pulp                               300       261       319       275
      Paper                              590       266       594       238
      Coated groundwood                   32        45        34        33
      Bleached paperboard                 37        55        51        48
      Other products                       8        10        10         8
                                         967       637     1,008       602

  Containerboard, Packaging and Recycling:
      Containerboard                     101        88        86        79
      Packaging                          877       588       831       545
      Recycling                           67        43        63        49
      Other products                      82        36        76        35
                                       1,127       755     1,056       708

  Real estate and related assets         468       392       465       364

  Corporate and other                     37        33        39        36
                                      $4,890    $3,752    $4,718    $3,398

  Earnings before interest
  expense and income taxes (A)                 Q3                 Q4
      (in millions)                  Sept. 29, Sept. 30,  Dec. 29,  Dec. 30,
                                        2002      2001      2002      2001

  Timberlands (B)                       $138      $107      $318      $109
  Wood products © (D) (E)              (18)       47       (75)     (107)
  Pulp and Paper (F) (G)                  10       (28)       86        (3)
  Containerboard Packaging and
  Recycling (H) (I)                       88        69       114        59
  Real estate and related assets (J)      85        75        81        58
  Corporate and other (K) (L) (M)        (85)      (61)     (137)      (54)
                                        $218      $209      $387       $62


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  Net sales and revenues (in millions):                   Year ended
                                                   Dec. 29,        Dec. 30,
                                                     2002            2001
  Timberlands:
      Raw materials (logs, timber and chips)         $782            $617
      Other products                                  338             168
                                                    1,120             785
  Wood products:
      Softwood lumber                               3,186           2,751
      Softwood plywood and veneer                     634             456
      Oriented strand board,
       composite and other panels                   1,028             741
      Hardwood lumber                                 306             292
      Engineered lumber products                    1,148           1,070
      Raw materials (logs, timber and chips)          472             433
      Other products                                  818             750
                                                    7,592           6,493
  Pulp and Paper:
      Pulp                                          1,196           1,134
      Paper                                         2,163           1,037
      Coated groundwood                               126             148
      Bleached paperboard                             179             198
      Other products                                   34              42
                                                    3,698           2,559

  Containerboard, Packaging and Recycling:
      Containerboard                                  350             346
      Packaging                                     3,338           2,385
      Recycling                                       229             212
      Other products                                  295             153
                                                    4,212           3,096

  Real estate and related assets                    1,750           1,461

  Corporate and other                                 149             151
                                                  $18,521         $14,545

  Earnings before interest
  expense and income taxes (A)                            Year ended
      (in millions)                                Dec. 29,        Dec. 30,
                                                     2002            2001

  Timberlands (B)                                    $750            $487
  Wood products © (D) (E)                           (20)             16
  Pulp and Paper (F) (G)                               82              69
  Containerboard Packaging and
  Recycling (H) (I)                                   335             290
  Real estate and related assets (J)                  336             264
  Corporate and other (K) (L) (M)                    (341)           (272)
                                                   $1,142            $854


  (A)   Certain reclassifications have been made to conform prior periods'
        data with the current presentation.
  (B)   2002 fourth quarter includes a $117 million gain on the sale of
        timberlands in Washington state.
  ©   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 quarter
        includes charges of $31 million and the 2002 fourth quarter includes
        charges of $26 million for countervailing and anti-dumping duties
        and related costs.  The year-to-date impact from countervailing and
        anti-dumping duties and related costs is a  net charge of
        $17 million, including current year charges of $64 million, net of
        $47 million of credits related to the reversal of charges accrued in
        2001.  2001 includes charges for countervailing and anti-dumping
        duties and related costs of $30 million and $20 million in the third
        and fourth quarters respectively.
  (D)   2002 includes $17 million in first quarter costs associated with the
        permanent closure of an oriented strand board facility in Canada and
        $34 million in fourth quarter charges associated with the closure of
        two additional wood products facilities and the outsourcing of
        Canadian logging operations.
  (E)   2001 includes $32 million for fourth quarter charges associated with
        the closure of three North American wood products facilities.
  (F)   2002 year-to-date 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)   2001 results include $19 million of third quarter costs associated
        with a machine closure at Longview, Wash.  2002 fourth quarter
        results include an $8 million benefit resulting from adjustments to
        these 2001 closure charges.
  (H)   2002 year-to-date results include $52 million in costs associated
        with the closure, or impending closure of seven facilities,
        including $10 million of first quarter costs, $28 million of second
        quarter costs and $14 million of fourth quarter costs.
  (I)   2001 results include $13 million of third quarter costs associated
        with a machine closure at Springfield, Ore.
  (J)   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)   2002 results include a $35 million charge in the fourth quarter for
        the termination of the former MacMillan Bloedel pension plan for
        U.S. employees.
  (L)   2002 results for corporate and other include net foreign exchange
        gains (losses) of $20 million in the second quarter, ($17 million)
        in the third quarter and $1 million in the fourth quarter, for a
        year-to-date net gain of $4 million.  These gains and losses result
        primarily from fluctuations in Canadian exchange rates.

        2001 results for corporate and other include net foreign exchange
        gains (losses) of ($2 million) in the first quarter, $7 million in
        the second quarter,  ($11 million) in the third quarter and
        ($6 million) in the fourth quarter, for a year-to-date net loss of
        $12 million, resulting primarily from fluctuations in Canadian
        exchange rates.
  (M)   2001 year-to-date costs include one-time costs of $41 million
        associated with information systems outsourcing, $21 million of
        additional costs to streamline and improve delivery of internal
        support services and includes $10 million incurred in the second
        quarter for costs associated with Westwood Shipping Line's
        transition to a new charter fleet.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)


  Third party sales volumes:                  Q1                  Q2
                                     March 31,  April 1,  June 30,  July 1,
                                        2002      2001      2002      2001
  Timberlands (millions):
      Raw materials - cubic feet          71        82       105        75

  Wood products (millions):
      Softwood lumber - board feet     1,812     1,667     2,295     1,792
      Softwood plywood and veneer
       - square feet (3/8")              575       449       750       491
      Composite panels
       - square feet (3/4")              308        63       445        59
      Oriented strand board
       - square feet (3/8")              945       871     1,095       916
      Hardwood lumber - board feet       108       106       113       106
      Raw materials - cubic feet         143       163       164       150

  Pulp and paper (thousands):
      Pulp - air-dry metric tons         563       480       618       507
      Paper - tons                       546       348       717       307
      Coated groundwood - tons            48        45        49        48
      Bleached paperboard - tons          53        60        61        56

  Containerboard, packaging and recycling (thousands)
      Containerboard - tons              209       218       260       222
      Packaging - MSF                 14,540    12,690    18,446    11,856
      Recycling - tons                   604       826       552       817


  Total production volumes:                   Q1                  Q2
                                      March 31, April 1,  June 30,  July 1,
                                        2002      2001      2002      2001
  Timberlands (millions):
      Logs - cubic feet                  153       132       191       131

  Wood products (millions):
      Softwood lumber - board feet     1,530     1,406     1,702     1,422
      Softwood plywood and veneer
       - square feet (3/8")              431       285       562       278
      Composite panels
       - square feet (3/4")              218        29       183        25
      Oriented strand board
       - square feet (3/8")              957       783       944       833
      Hardwood lumber - board feet        96       111        99       109
      Logs - cubic feet                  185       174       187       137

  Pulp and paper (thousands):
      Pulp - air-dry metric tons         607       549       492       448
      Paper - tons                       510       345       667       289
      Coated groundwood - tons            48        55        60        50
      Paperboard - tons                   63        52        67        61

  Containerboard, packaging and recycling (thousands)
      Containerboard - tons            1,250       875     1,600       776
      Packaging - MSF                 16,281    13,355    20,630    13,432
      Recycling - tons                 1,258     1,192     1,286     1,181


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)


  Third party sales volumes:                   Q3                  Q4
                                     Sept. 29,  Sept. 30, Dec. 29,  Dec. 30,
                                        2002      2001      2002      2001
  Timberlands (millions):
      Raw materials - cubic feet          97        76       113        68

  Wood products (millions):
      Softwood lumber - board feet     2,362     1,943     2,154     1,801
      Softwood plywood and veneer
       - square feet (3/8")              736       494       625       463
      Composite panels
       - square feet (3/4")               95        61       299        70
      Oriented strand board
       - square feet (3/8")            1,117       964     1,048       987
      Hardwood lumber - board feet       104        99       102       102
      Raw materials - cubic feet         161       111       127       125

  Pulp and paper (thousands):
      Pulp - air-dry metric tons         561       527       636       599
      Paper - tons                       749       342       730       304
      Coated groundwood - tons            55        64        58        49
      Bleached paperboard - tons          47        66        68        61

  Containerboard, packaging and recycling (thousands)
      Containerboard - tons              283       223       231       220
      Packaging - MSF                 17,902    13,319    16,249    11,668
      Recycling - tons                   539       548       597       646


  Total production volumes:                   Q3                  Q4
                                     Sept. 29,  Sept. 30, Dec. 29,  Dec. 30,
                                        2002      2001      2002      2001
  Timberlands (millions):
      Logs - cubic feet                  164       129       155       125

  Wood products (millions):
      Softwood lumber - board feet     1,728     1,315     1,871     1,192
      Softwood plywood and veneer
       - square feet (3/8")              584       275       701       261
      Composite panels
       - square feet (3/4")              235        21       228        18
      Oriented strand board
       - square feet (3/8")            1,115       912     1,033       915
      Hardwood lumber - board feet       107        99       104        91
      Logs - cubic feet                  204       166       218       171

  Pulp and paper (thousands):
      Pulp - air-dry metric tons         630       553       552       590
      Paper - tons                       704       300       730       310
      Coated groundwood - tons            43        57        59        49
      Paperboard - tons                   31        69        66        58

  Containerboard, packaging and recycling (thousands)
      Containerboard - tons            1,621     1,065     1,533       983
      Packaging - MSF                 20,432    13,077    20,563    12,338
      Recycling - tons                 1,252     1,210     1,288     1,143


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)


  Third party sales volumes:                               Year ended
                                                   Dec. 29,        Dec. 30,
                                                     2002            2001
  Timberlands (millions):
      Raw materials - cubic feet                       386            301

  Wood products (millions):
      Softwood lumber - board feet                   8,623          7,203
      Softwood plywood and veneer
       - square feet (3/8")                          2,686          1,897
      Composite panels - square feet (3/4")          1,147            253
      Oriented strand board - square feet (3/8")     4,205          3,738
      Hardwood lumber - board feet                     427            413
      Raw materials - cubic feet                       595            549

  Pulp and paper (thousands):
      Pulp - air-dry metric tons                     2,378          2,113
      Paper - tons                                   2,742          1,301
      Coated groundwood - tons                         210            206
      Bleached paperboard - tons                       229            243

  Containerboard, packaging and recycling (thousands)
      Containerboard - tons                            983            883
      Packaging - MSF                               67,137         49,533
      Recycling - tons                               2,292          2,837


  Total production volumes:                               Year ended
                                                   Dec. 29,        Dec. 30,
                                                     2002            2001
  Timberlands (millions):
      Logs - cubic feet                                663            517

  Wood products (millions):
      Softwood lumber - board feet                   6,831          5,335
      Softwood plywood and veneer
       - square feet (3/8")                          2,278          1,099
      Composite panels - square feet (3/4")            864             93
      Oriented strand board - square feet (3/8")     4,049          3,443
      Hardwood lumber - board feet                     406            410
      Logs - cubic feet                                794            648

  Pulp and paper (thousands):
      Pulp - air-dry metric tons                     2,281          2,140
      Paper - tons                                   2,611          1,244
      Coated groundwood - tons                         210            211
      Paperboard - tons                                227            240

  Containerboard, packaging and recycling (thousands)
      Containerboard - tons                          6,004          3,699
      Packaging - MSF                               77,906         52,202
      Recycling - tons                               5,084          4,726



  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION

  CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
             (in millions)
                           March 31,  June 30, Sept. 29,  Dec. 29, Dec. 31,
  Assets                      2002      2002      2002      2002      2001

  Weyerhaeuser
    Current assets:
      Cash and
       short-term
       investments            $127      $141      $119      $115      $202
      Receivables,
       less allowances       1,599     1,649     1,604     1,413     1,024
      Inventories            2,072     2,012     1,951     1,941     1,428
      Prepaid expenses         509       550       485       412       407
        Total current assets 4,307     4,352     4,159     3,881     3,061
    Property and equipment  12,454    12,362    12,235    12,426     8,309
    Construction in progress 1,169     1,360     1,338       686       428
    Timber and timberlands
     at cost, less fee
     stumpage charged
     to disposals            4,457     4,472     4,436     4,401     1,789
    Investments in
     and advances to
     equity affiliates         542       547       541       578       541
    Goodwill                 2,741     2,778     2,812     3,042     1,095
    Deferred pension
     and other assets        1,170     1,239     1,239     1,285     1,053
                            26,840    27,110    26,760    26,299    16,276

  Real estate
   and related assets        2,078     2,100     2,035     1,970     2,017

    Total assets           $28,918   $29,210   $28,795   $28,269   $18,293

  Liabilities and Shareholders' Interest

  Weyerhaeuser
    Current liabilities:
      Notes payable and
       commercial paper       $260      $110      $231        $2        $4
      Current maturities
       of long-term debt       214       368       791       786         8
      Accounts payable       1,072     1,125     1,059       983       809
      Accrued liabilities    1,177     1,320     1,189     1,223     1,042
        Total current
         liabilities         2,723     2,923     3,270     2,994     1,863
    Long-term debt          12,927    12,779    12,224    11,907     5,095
    Deferred income taxes,
     pension, other
     postretirement
     benefits and
     other liabilities       5,274     5,326     5,307     5,398     3,254
                            20,924    21,028    20,801    20,299    10,212
  Real estate and related assets
    Notes payable
     and commercial paper      262       357        80        63       358
    Long-term debt             596       576       856       814       620
    Other liabilities          451       467       432       472       408
                             1,309     1,400     1,368     1,349     1,386
    Total liabilities       22,233    22,428    22,169    21,648    11,598

    Shareholders' interest   6,685     6,782     6,626     6,621     6,695

    Total liabilities
     and shareholders'
     interest              $28,918   $29,210   $28,795   $28,269   $18,293

SOURCE: Weyerhaeuser Company Limited

CONTACT: press, 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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