As a result of poor market conditions, the Prince Albert pulp and paper mill in Saskatchewan faces indefinite closure, Weyerhaeuser Company (NYSE: WY) announced today.

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

"Today's announcement is an important step in strengthening Weyerhaeuser's overall portfolio to enhance shareholder value," said Steven R. Rogel, chairman, president and chief executive officer. "As part of a strategic review of our businesses operating in structurally challenged segments of the industry, we have determined the Prince Albert mill is no longer a strategic fit for Weyerhaeuser. We will continue to seek additional opportunities to unlock the value of our portfolio."

The uncoated free-sheet paper and pulp markets face fundamental challenges, including excess capacity, declining demand, mounting inventories and weak prices. Weyerhaeuser made its determination regarding the Saskatchewan operation as a result of these market conditions.

The company intends to explore all options with respect to the future of the mill, including identification of potential purchasers. Pursuant to Saskatchewan legislation, the company has given 90 days' notice to begin workforce reduction.

Prince Albert operations will commence a phased, indefinite closure starting Jan. 3, 2006. Paper operations will cease production on or about Jan. 2. The pulp mill will continue operating until spring to minimize risk of damage caused by cold winter weather.

"We fully understand the major impact of these changes for our employees, contractors, the community and customers, and we will work constructively in the weeks and months ahead to prepare for the transition," said Craig Neeser, senior vice president, Canada. "Unfortunately, market conditions have reached a point where we have no alternative."

The Prince Albert facility has an annual capacity of 280,000 tons of uncoated paper and 130,000 tons of market pulp. It employs 690 hourly and salaried employees.

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/ .

   For more information contact:

   Media -- Bruce Amundson 253-924-3047
   Analysts -- Kathryn McAuley 253-924-2058
   Saskatchewan Media -- Wayne Roznowsky 306-953-5198

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 253-924-3047, or analysts, Kathryn
McAuley, +1-253-924-2058, or Saskatchewan Media, Wayne Roznowsky,
+1-306-953-5198

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