Weyerhaeuser Company (NYSE: WY) and four hardwood lumber mills today announced an agreement to settle a lawsuit that was filed in U.S. District Court in Portland, Ore. The lawsuit alleges damages exceeding $100 million. Under the terms of the agreement, Weyerhaeuser will pay $34.5 million before taxes in settlement of all claims with no admission of liability. The lawsuit alleged that Weyerhaeuser had monopoly power, or attempted to gain monopoly power, in the Pacific Northwest market for alder saw logs and finished alder lumber.

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Weyerhaeuser said the settlement will result in an after-tax charge of about $23 million, or 10 cents per share, in the first quarter. The company is a defendant in two other similar antitrust cases relating to alder filed in U.S. District Court in Portland, Ore., that are scheduled to go to trial on May 11, 2004 and June 1, 2004, respectively. Last year, the company took an after-tax charge of $52 million, or 23 cents per share, in the first quarter following a verdict against the company in a prior alder case. The company has filed an appeal with the U.S. Court of Appeals for the Ninth Circuit seeking to overturn this verdict.

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 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/ .

    For more information contact:
    Weyerhaeuser -- Frank Mendizabal
    253-924-3357

    Plaintiffs Attorney -- Michael E. Haglund
    503-225-0177

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SOURCE: Weyerhaeuser Company

CONTACT: Frank Mendizabal of Weyerhaeuser, +1-253-924-3357, or
plaintiffs attorney, Michael E. Haglund, +1-503-225-0177

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