SEATTLE--(BUSINESS WIRE)--June 7, 2006--Plum Creek (NYSE:PCL)announced that it expects to complete its previously announced $200million open-market share repurchase program today and that its boardof directors authorized an additional $200 million share repurchaseprogram. The program authorizes the company, at its own discretion, tobuy back shares of its outstanding common stock from time to time withopen-market purchases as market conditions warrant.
Plum Creek repurchased 3.36 million shares, at an average price of$35.78 per share for the month of May and 0.90 million shares, at anaverage price of $36.08 per share for the month of June. The 4.26million shares repurchased during the second quarter of 2006 reducedstock outstanding by approximately 2.3 percent.
"This action underscores our conviction about the long-term valueof our assets and our strategy to create and capture shareholdervalue," said Rick Holley, president and chief executive officer."Through this program, we have acquired valuable timber and landassets at attractive values in the stock market, increasing ourshareholders' proportionate ownership interest in these assets. Wewill continue our disciplined approach to capital allocation, takinginto consideration all options for long-term value creation, includingdiscretionary capital investment, dividends, acquisitions andopportunistic share repurchase."
Plum Creek is the largest and most geographically diverse privatelandowner in the nation, with more than 8 million acres of timberlandsin major timber producing regions of the United States and 10 woodproducts manufacturing facilities in the Northwest.
This press release contains forward-looking statements within themeaning of the Private Litigation Reform Act of 1995 as amended. Someof these forward-looking statements can be identified by the use offorward-looking words such as "believes," "expects," "may," "will,""should," "seek," "approximately," "intends," "plans," "estimates," or"anticipates," or the negative of those words or other comparableterminology. The accuracy of such statements is subject to a number ofrisks, uncertainties and assumptions including, but not limited to,the cyclical nature of the forest products industry, our ability toharvest our timber, our ability to execute our acquisition strategy,the market for and our ability to sell or exchange non-strategictimberlands and timberland properties that have higher and betteruses, and various regulatory constraints. These and other risks,uncertainties and assumptions are detailed from time to time in ourfilings with the Securities and Exchange Commission under theSecurities Exchange Act of 1934, as amended, and the Securities Act of1933, as amended. It is likely that if one or more of the risksmaterializes, or if one or more assumptions prove to be incorrect, thecurrent expectations of Plum Creek and its management will not berealized. Forward-looking statements are not guarantees ofperformance, and speak only as of the date made, and neither PlumCreek nor its management undertakes any obligation to update or reviseany forward-looking statements.
CONTACT: Plum Creek Timber Company, Inc., Seattle
Investors: John Hobbs, 800-858-5347
Media: Kathy Budinick, 206-467-3620
SOURCE: Plum Creek Timber Company, Inc.