The Port of Tacoma Commission today approved a $12.5 million settlement with Weyerhaeuser Company (NYSE: WY) as compensation in eminent domain proceedings brought by the Port in September 2004.

  (Logo:  http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a
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The agreement calls for a $12.5 million payment to Weyerhaeuser, which will, in turn, vacate the site by May 31, 2006.

The Weyerhaeuser Puget Sound Chip Center is located along a narrow section of the Blair Waterway. To accommodate larger vessels and ensure safe navigation, the Port will begin widening this section of the waterway in July 2006.

The Port exercised its right of eminent domain as part of its program to widen portions of the Blair Waterway. The settlement is compensation for the remaining 12 years on the lease and for Weyerhaeuser facility improvements.

Weyerhaeuser has operated a 25-acre wood chip export facility on the Blair Waterway since 1973. Weyerhaeuser owns the facility improvements and leases the land from the Port. The existing lease was set to expire in 2017.

About the Port of Tacoma

The Port of Tacoma is the economic engine of South Puget Sound, generating more than 43,000 family-wage jobs in Pierce County and more than 113,000 jobs across Washington state. A major gateway to Asia and Alaska, the Port of Tacoma is the leading Pacific Northwest seaport, handling $29 billion in annual trade and a projected 2005 volume of 2.2 million TEUs (Twenty-foot Equivalent container Units). The Port is also a major center for bulk, breakbulk and project/heavy-lift cargoes, as well as automobiles. To learn more about the Port of Tacoma, visit www.portoftacoma.com.

About Weyerhaeuser Company

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/ .

   Contacts:
   * Frank Mendizabal, Weyerhaeuser Company, 253-924-3357
   * Mike Wasem, Port of Tacoma, 253-383-9436

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SOURCE: Weyerhaeuser Company

CONTACT: Frank Mendizabal of Weyerhaeuser Company, +1-253-924-3357; or
Mike Wasem of Port of Tacoma, +1-253-383-9436

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