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Weyerhaeuser Reports Net Earnings of $1.3 Billion for 2004, or $5.43 per Diluted Share, on Net Sales of $22.7 Billion

PRNewswire-FirstCall
FEDERAL WAY, Wash.
Jan 21, 2005

Weyerhaeuser Company (NYSE: WY) today reported net earnings of $1.3 billion for 2004, or $5.43 per diluted share, on net sales of $22.7 billion. This compares with $277 million, or $1.25 per diluted share, on net sales of $19.9 billion for the full year 2003.

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

Fourth quarter 2004 earnings were $199 million, or 82 cents per diluted share, on net sales of $5.9 billion. Last year, Weyerhaeuser reported fourth quarter net earnings of $92 million, or 41 cents per diluted share, on net sales of $5.1 billion.

  Fourth quarter 2004 earnings include the following after-tax items:

  -- A charge of $34 million, or 14 cents per diluted share, for early
     extinguishment of debt.
  -- A gain of $24 million, or 10 cents per diluted share, for gains on the
     sale of facilities.
  -- A charge of $19 million, or 8 cents per diluted share, for the
     impairment of assets in the company's European manufacturing
     operations.
  -- A charge of $16 million, or 7 cents per diluted share, recognized in
     connection with a change in the method of estimating workers'
     compensation liabilities.
  -- A charge of $15 million, or 6 cents per diluted share, for the net book
     value of technology donated to a university.

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

  -- A charge of $29 million, or 14 cents per diluted share, for closure of
     facilities.
  -- A charge of $17 million, or 8 cents per diluted share, for integration
     and restructuring activities.
  -- A charge of $5 million, or 2 cents per diluted share, associated with
     the settlement of litigation.
  -- A gain of $40 million, or 18 cents per diluted share, on the sale of
     timberlands in Tennessee and the Carolinas.

  Other significant fourth quarter 2004 financial matters include:

  -- The company, including Real Estate and Related Assets, reduced
     outstanding debt by approximately $730 million. For the year, the
     company reduced outstanding debt by approximately $1.9 billion and
     ended the year with approximately $1.2 billion in cash and short-term
     investments and approximately $10.6 billion in outstanding debt.
  -- Capital spending, excluding Real Estate and Related Assets, for 2004
     was approximately $504 million.

"Our strong performance for the year demonstrates that our focus on customers, efficiency and financial management has created a competitive Weyerhaeuser that can deliver strong shareholder returns," said Steven R. Rogel, chairman, president and chief executive officer. "In the fourth quarter, however, some of our businesses experienced higher than expected costs which hurt our results. Some of these costs resulted from maintenance we had delayed until the fourth quarter due to strong market demand earlier in the year. We also incurred additional costs due to weather-related issues and the downtime we took to balance orders with customer demand. As we look to the first quarter, we are concerned about the impact unusually bad weather may have on our results."

  SUMMARY OF FOURTH QUARTER FINANCIAL HIGHLIGHTS
  Millions (except per share data)   4Q 2004       4Q 2003      Change
  Net earnings                          $199           $92        $107
  Earnings per diluted share           $0.82         $0.41       $0.41
  Net sales                           $5,886        $5,145        $741

  SUMMARY OF ANNUAL FINANCIAL HIGHLIGHTS
  Millions (except per share data)      2004          2003      Change
  Net earnings                        $1,283          $277      $1,006
  Earnings per diluted share           $5.43         $1.25       $4.18
  Net sales                          $22,665       $19,873      $2,792

  SEGMENT RESULTS FOR FOURTH QUARTER
  (Contributions to Pre-Tax Earnings)
  Millions                               4Q 2004    4Q 2003     Change
  Timberlands                               $217       $185        $32
  Wood Products                              $72       $111      ($39)
  Pulp and Paper                             $35      ($67)       $102
  Containerboard, Packaging and Recycling    $81        $32        $49
  Real Estate and Related Assets            $217       $109       $108

  TIMBERLANDS
                                              4Q 2004 3Q 2004   Change
  Contribution to pre-tax earnings (millions)    $217    $450   ($233)

Excluding the third quarter $271 million pre-tax gain on the sale of 270,000 acres of timberlands in Georgia, fourth quarter earnings increased $38 million from the third quarter primarily because of sales of other non- strategic timberlands that closed earlier than expected.

Weyerhaeuser expects first quarter market conditions to be similar to fourth quarter.

  WOOD PRODUCTS
                                               4Q 2004  3Q 2004  Change
  Contribution to pre-tax earnings (millions)      $72     $362  ($290)

Fourth quarter earnings of $72 million include a $30 million pre-tax gain from the sale of a mill site in Vancouver, British Columbia, and a $6 million pre-tax gain from the sale of three mills in the Carolinas. Third quarter earnings included 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.

As expected, fourth quarter prices were significantly lower than third quarter, particularly in softwood lumber and structural panels. In addition, higher delivered log costs in the South and Canada caused by weather-related transportation disruptions and shortages affected the segment. Higher resin and energy costs, and a stronger Canadian dollar also negatively affected the segment. Volumes of key products declined approximately six percent due to seasonal market conditions. The company also experienced extended maintenance at several facilities, including its largest oriented strand board facility.

The segment incurred $27 million in countervailing and anti-dumping duties and related costs on Canadian softwood lumber the company sold into the United States in the fourth quarter, compared with $31 million in the third quarter. For the year, the company incurred $118 million in countervailing and anti- dumping duties and related costs, compared with $97 million in 2003.

Weyerhaeuser expects first quarter earnings to increase from fourth quarter due to improving prices and strong housing starts.

  PULP AND PAPER
                                               4Q 2004  3Q 2004  Change
  Contribution to pre-tax earnings (millions)      $35      $80   ($45)

Earnings declined during the quarter due to higher costs associated with planned maintenance downtime, a stronger Canadian dollar, and higher than anticipated energy costs. Papergrade pulp prices, which had declined early in the quarter, began to recover. Fluff pulp prices improved slightly. Pricing for Fine Paper products improved compared with third quarter.

Weyerhaeuser expects higher first quarter earnings compared with fourth quarter. Prices for papergrade pulp, which began improving late in the quarter, should continue to improve. Fine Paper prices are expected to hold steady.

  CONTAINERBOARD, PACKAGING AND RECYCLING
                                              4Q 2004   3Q 2004  Change
  Contribution to pre-tax earnings (millions)     $81       $82    ($1)

Fourth quarter earnings were relatively unchanged from third quarter. Higher fourth quarter containerboard and box prices offset lower box shipments and higher energy and maintenance costs. During the fourth quarter, Weyerhaeuser took 24,000 tons of market downtime.

The company expects first quarter earnings to be consistent with the fourth quarter.

  REAL ESTATE AND RELATED ASSETS
                                              4Q 2004  3Q 2004  Change
  Contribution to pre-tax earnings (millions)    $217     $155     $62

Fourth quarter earnings benefited from increased single-family home closings, and higher sales prices and margins. In addition, a $24 million net pre-tax gain on land and lot sales contributed to earnings. Sales of single- family homes declined seasonally during the quarter compared to the prior quarter.

The backlog of homes sold, but not closed, at the end of the fourth quarter is near six months. Weyerhaeuser expects first quarter earnings to decline seasonally from fourth quarter due to decreased single-family home closings in the markets in which the company operates.

OTHER

The company will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on Jan. 21 to discuss the fourth 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 -- 3158466) within North America and at 1-706-645-9291 (access code -- 3158466) from outside North America.

The call is being webcast and can be accessed through Weyerhaeuser's Internet site at www.weyerhaeuser.com by clicking on the "Listen to our conference call" link.

The webcast also is being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com).

Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2004, sales were $22.7 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 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 expectations regarding the company's markets in the first quarter of 2005; expected earnings and performance of the company's business segments during the first quarter of 2005, demand and pricing for the company's products in the first quarter of 2005, non-strategic timberland sales in the first quarter of 2005, seasonal decline in single-family home closings in the first quarter of 2005, effect of Canadian exchange rate, 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; weather conditions; availability and pricing of raw materials, 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


                                              Q4           Year ended
     (in millions)                       Dec.    Dec.    Dec.     Dec.
                                          26,     28,     26,      28,
                                         2004    2003    2004     2003
  Net sales and revenues:
     Weyerhaeuser (1)                   $4,975  $4,527  $20,170  $17,844
     Real Estate and Related Assets        911     618    2,495    2,029
  Total net sales and revenues           5,886   5,145   22,665   19,873

  Costs and expenses:
     Weyerhaeuser:
       Costs of products sold            3,894   3,547   15,249   14,078
       Depreciation, amortization and
        fee stumpage                       329     353    1,308    1,307
       Selling expenses                    120     122      488      457
       General and administrative
        expenses                           250     238      955      950
       Research and development
        expenses                            17      17       55       51
       Taxes other than payroll and
        income taxes                        48      45      194      185
       Charges for integration and
        restructuring                        3      25       39      103
       Charges for closure of
        facilities                           0      45       14      127
       Other operating costs,
        net  (2)(3)                          4     (92)    (258)    (244)
                                         4,665   4,300   18,044   17,014
     Real Estate and Related Assets:
       Costs and operating expenses        647     464    1,763    1,516
       Depreciation and amortization         5       3       14       11
       Selling expenses                     37      31      125      107
       General and administrative
        expenses                            26      20       81       63
       Taxes other than payroll and
        income taxes                        --       1        2        3
       Other operating costs, net            0      (4)     (17)      (9)
                                           715     515    1,968    1,691
  Total costs and expenses               5,380   4,815   20,012   18,705

  Operating income                         506     330    2,653    1,168

  Interest expense and other:
     Weyerhaeuser:
       Interest expense incurred (4)      (241)   (202)    (838)    (815)
       Less interest capitalized             5       5        9       19
       Equity in income (loss) of
        affiliates                           3      (1)      14       (6)
       Interest income and other             9       2       24       17
     Real Estate and Related Assets:
       Interest expense incurred           (14)    (13)     (57)     (53)
       Less interest capitalized            14      13       57       53
       Equity in income of
        unconsolidated entities             11      (3)      52       20
       Interest income and other            10       8       31       33
  Earnings before income taxes and
   cumulative effect of a change in
   accounting principle                    303     139    1,945      436
  Income taxes                            (104)    (47)    (662)    (148)
  Earnings before cumulative effect of
   a change in accounting principle        199      92    1,283      288
  Cumulative effect of a change in
   accounting principle, net of
   applicable taxes of $6 (5)               --      --       --      (11)
  Net earnings (loss)                     $199     $92   $1,283     $277

  Basic net earnings (loss) per share:
     Net earnings (loss) before
      cumulative effect of a change
      in accounting principle            $0.82   $0.41    $5.45    $1.30
     Cumulative effect of a change in
      accounting principle                  --      --       --    (0.05)
     Net earnings (loss)                 $0.82   $0.41    $5.45    $1.25

  Diluted net earnings (loss) per
   share:
     Net earnings (loss) before
      cumulative effect of a change
      in accounting principle            $0.82   $0.41    $5.43    $1.30
     Cumulative effect of a change in
      accounting principle                  --      --       --    (0.05)
     Net earnings (loss)                 $0.82   $0.41    $5.43    $1.25

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


   (1) The first, second, third and fourth quarters of 2004 include charges
   of $26 million, $34 million and $31 million and $27 million,
   respectively, or $118 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, third and fourth quarters of 2004 include net
   foreign exchange gains (losses) of ($9) million, ($7) million, $16
   million and $27 million, respectively, for a total year-to-date net gain
   of $27 million.  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 fourth quarter includes a net gain of $36 million on the
   sale of facilities, and charges of $29 million for the impairment of
   assets in the company's European manufacturing operations, $24 million
   recognized in connection with a change in the method of estimating
   workers' compensation liabilities and $23 million for the net book value
   of technology donated to a university.
   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 and fourth quarters of 2004 include charges of $21 million
   and $52 million, respectively, 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              90      89     100      92      89      82
    Engineered lumber
     products                   298     254     396     308     418     329
    Logs                         23      25      38      33      32      19
    Other products              239     207     288     256     289     244
                              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


                                             Q4           Year ended
                                          Dec.    Dec.    Dec.     Dec.
                                           26,     28,     26,      28,
                                          2004    2003    2004     2003
  Timberlands:
     Logs                                 $221    $199     $822     $730
     Other products                        105      61      280      264
                                           326     260    1,102      994
  Wood Products:
     Softwood lumber                       901     793    3,915    3,281
     Plywood                               208     227      929      784
     Veneer                                 10      12       44       39
     Composite panels                      122      99      501      393
     OSB                                   255     370    1,390    1,109
     Hardwood lumber                        86      87      365      350
     Engineered lumber products            393     288    1,505    1,179
     Logs                                   32      28      125      105
     Other products                        253     238    1,069      945
                                         2,260   2,142    9,843    8,185
  Pulp and Paper:
     Pulp                                  380     342    1,471    1,305
     Paper                                 570     510    2,226    2,182
     Coated groundwood                      44      33      156      140
     Liquid packaging board                 53      49      208      198
     Other products                         16       9       54       26
                                         1,063     943    4,115    3,851

  Containerboard, Packaging and
   Recycling:
     Containerboard                        113      73      368      304
     Packaging                             897     845    3,584    3,544
     Recycling                              89      64      347      247
     Bags                                   23      21       80       80
     Other products                         46      39      156      147
                                         1,168   1,042    4,535    4,322

  Real Estate and Related Assets           911     618    2,495    2,029

  Corporate and Other                      158     140      575      492

                                        $5,886  $5,145  $22,665  $19,873


  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


                                               Q4           Year ended
     (in millions)                        Dec.    Dec.     Dec.     Dec.
                                           26,     28,      26,      28,
                                          2004    2003     2004     2003
  Timberlands (1)                         $217    $185   $1,027     $777
  Wood Products (2) (3) (4) (5)             72     111    1,055       59
  Pulp and Paper (6)                        35     (67)     104      (82)
  Containerboard, Packaging and
   Recycling (7) (8)                        81      32      249      262
  Real Estate and Related Assets (9)       217     109      610      392
  Corporate and Other  (10) (11) (12)      (83)    (34)    (271)    (176)
                                          $539    $336   $2,774   $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, third and fourth quarters of 2004 include charges
   of $26 million, $34 million and $31 million and $27 million,
   respectively, or $118 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 fourth quarter of 2004 includes
   charges of $3 million for the closure of facilities and a gain of
   $36 million on the sale 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 fourth quarter of 2004 includes a credit of $3 million for the
   reversal of closure costs accrued in prior years.  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 fourth quarter of 2004 includes a $24 million net
   gain on land and lot sales.  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 fourth quarter of 2004 includes a $7 million gain for the
   settlement of an insurance claim relating to the Cemwood litigation. 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 fourth quarter of 2004 includes charges of $29 million for the
   impairment of assets in the company's European manufacturing operations,
   $24 million recognized in connection with a change in the method of
   estimating workers' compensation liabilities and $23 million for the net
   book value of technology donated to a university.


   (13) The first, second, third and fourth quarters of 2004 include net
   foreign exchange gains (losses) of ($10) million, ($6) million, $16
   million and $26 million, respectively, for a $26 million net gain
   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             102     109     118     115     102     104
      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

                                              Q4            Year ended
                                       Dec. 26, Dec. 28, Dec. 26, Dec. 28,
                                         2004     2003     2004     2003
  Timberlands (thousands):
      Logs - cunits                      1,018    1,148    3,920    4,125

  Wood Products (millions):
      Softwood lumber - board feet       2,144    2,123    8,890    8,981
      Plywood  - square feet (3/8")        647      616    2,629    2,665
      Veneer - square feet (3/8")           55       58      225      239
      Composite panels - square feet
       (3/4")                              294      289    1,234    1,162
      Oriented strand board - square
       feet (3/8")                       1,011    1,001    4,213    4,361
      Hardwood lumber - board feet          95      107      417      435
      Logs - cunits (in thousands)         248      210      934      799

  Pulp and Paper (thousands):
      Pulp - air-dry metric tons           659      628    2,558    2,479
      Paper - tons                         680      688    2,876    2,822
      Coated groundwood - tons              63       54      243      234
      Liquid packaging board - tons         69       65      276      256
      Paper converting - tons              458      430    1,894    1,882

  Containerboard, Packaging and
   Recycling (thousands):
      Containerboard - tons                285      222    1,001      890
      Packaging - MSF                   17,535   17,867   72,885   72,741
      Recycling - tons                     670      593    2,694    2,290
      Kraft bags and sacks - tons           25       26       95      100

  Real Estate and Related Assets:
      Single-family homes sold             992    1,156    5,375    5,005
      Single-family homes closed         1,638    1,431    5,264    4,626
      Single-family homes sold but not
       closed at end of period           2,372    2,261    2,372    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   2,189   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


                                              Q4            Year ended
                                       Dec. 26, Dec. 28, Dec. 26, Dec. 28,
                                          2004     2003     2004     2003
  Timberlands (thousands):
      Fee Depletion  - cunits            2,155    2,171    9,013    9,428

  Wood Products (millions):
      Softwood lumber - board feet       1,727    1,704    7,187    7,113
      Plywood - square feet (3/8")         396      404    1,628    1,708
      Veneer - square feet (3/8") (1)      600      534    2,386    2,199
      Composite panels - square
       feet (3/4")                         245      252    1,066      988
      Oriented strand board - square
       feet (3/8")                         972    1,047    4,081    4,170
      Hardwood lumber - board feet          80       89      349      373

  Pulp and Paper (thousands):
      Pulp - air-dry metric tons           639      645    2,546    2,522
      Paper - tons (2)                     761      658    3,006    2,833
      Coated groundwood - tons              62       61      240      239
      Liquid packaging board -
       tons                                 67       65      266      261
      Paper converting - tons              494      415    1,954    1,882

  Containerboard, Packaging and
   Recycling (thousands):
      Containerboard - tons (3)          1,586    1,494    6,291    6,003
      Packaging - MSF                   18,648   19,033   77,822   77,830
      Recycling - tons (4)               1,701    1,537    6,718    6,216
      Kraft bags and sacks - tons           24       25       94       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.     Dec.
                                    28,      27,      26,      26,      28,
  Assets                           2004     2004     2004     2004     2003

  Weyerhaeuser
    Current assets:
      Cash and short-term
       investments                  $74     $725   $1,227   $1,044     $171
      Receivables, less
       allowances                 1,701    1,860    1,804    1,604    1,484
      Inventories                 2,020    1,936    1,998    2,045    1,911
      Prepaid expenses              471      488      527      600      455
          Total current assets    4,266    5,009    5,556    5,293    4,021
    Property and equipment       12,141   11,883   11,838   11,755   12,243
    Construction in progress        251      279      242      269      403
    Timber and timberlands at
     cost, less fee stumpage
     charged to disposals         4,279    4,244    4,193    4,212    4,287
    Investments in and advances
     to equity affiliates           603      592      632      583      603
    Goodwill                      3,232    3,218    3,241    3,244    3,237
    Deferred pension and other
     assets                       1,287    1,273    1,243    1,223    1,311
                                 26,059   26,498   26,945   26,579   26,105

  Real Estate and Related Assets
    Cash and short-term
     investments                      5       12        8      153       31
    Receivables, less
     allowances                      52       42       52       43       64
    Real estate and land for
     sale and development         1,728    1,849    1,929    1,934    1,645
    Other assets                    293      322      350      342      264
                                  2,078    2,225    2,339    2,472    2,004

    Total assets                $28,137  $28,723  $29,284  $29,051  $28,109

  Liabilities and Shareholders'
   Interest

  Weyerhaeuser
    Current liabilities:
      Notes payable and
       commercial paper            $103       $2       $3       $3       $4
      Current maturities of
       long-term debt             1,129      445      490      489       90
      Accounts payable            1,065    1,114    1,102    1,197    1,041
      Accrued liabilities         1,212    1,323    1,337    1,444    1,390
        Total current
         liabilities              3,509    2,884    2,932    3,133    2,525
    Long-term debt               10,399   10,325   10,010    9,277   11,503
    Deferred income taxes         4,303    4,373    4,451    4,533    4,294
    Deferred pension, other
     postretirement benefits
     and other liabilities        1,391    1,416    1,429    1,438    1,377
                                 19,602   18,998   18,822   18,381   19,699
  Real Estate and Related
   Assets
    Notes payable and
     commercial paper                78       --       --        2        1
    Long-term debt                  887      872      869      867      893
    Other liabilities               356      443      534      546      407
                                  1,321    1,315    1,403    1,415    1,301

    Total liabilities            20,923   20,313   20,225   19,796   21,000

    Shareholders' interest        7,214    8,410    9,059    9,255    7,109

    Total liabilities and
     shareholders' interest     $28,137  $28,723  $29,284  $29,051  $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           $(89) $(107) $787  $379  $592  $581
     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                                 67    580   (80) (315)   (6)  142
     Payments on debt                    (60)  (251) (813)  (14) (253) (509)
     Proceeds from equity offering        --     --   954    --    --    --

                                               Q4             Year ended
                                          Dec.    Dec.      Dec.      Dec.
                                           26,     28,       26,       28,
     (in millions)                        2004    2003      2004      2003
  (Weyerhaeuser only, excludes Real
   Estate & Related Assets)

     Net cash from operations             $745    $778    $2,035    $1,631
     Cash paid for property and
      equipment                           (222)   (146)     (474)     (592)
     Cash paid for timberlands
      reforestation                         (7)     (9)      (30)      (34)
     Cash received from issuances of
      debt                                   1      31         1        44
     Revolving credit facilities, notes
      and commercial paper
       borrowings, net                      35    (707)       16      (300)
     Payments on debt                     (742)    (50)   (1,868)     (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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