SEATTLE--(BUSINESS WIRE)--March 1, 2004--Plum Creek TimberCompany, Inc. (NYSE:PCL) today announced the sale of its workinginterest in its coalbed methane project in West Virginia and Virginiato GeoMet, Inc. for $27 million. The sale agreement also provides forcontingent additional sales proceeds of up to $3 million. Plum Creekhas been a party to a joint operating agreement with GeoMet to exploreand develop coalbed methane gas found on these properties. Plum Creekacquired its interest in the joint operating agreement as part of its2001 merger with The Timber Company. Plum Creek retains its royaltyinterests on the coalbed methane project and also retains itsownership of other coalbed methane assets in the region. The sale issubject to usual and customary closing conditions and is expected toclose early in the second quarter.
Plum Creek also provided an update on the progress of sales ofcertain non-strategic timberlands. The company has signed salesagreements on approximately 200,000 acres of non-strategic timberlandslocated in Pennsylvania, Virginia, Washington and West Virginia. Thecompany expects to conclude these cash transactions, valued atapproximately $110 million, during the first quarter subject tocustomary closing conditions.
"These transactions are part of the execution of Plum Creek'sstrategy to realize the maximum value of all its assets," said RickHolley, president and chief executive officer. "The sale of ourcoalbed methane working interest captures value for our shareholderstoday, while allowing us to continue to participate in the economicsof the energy assets in the form of royalty income. We are pleasedwith the progress we are making in the sale of non-strategictimberlands. These sales are part of a larger effort to sell 700,000acres of large, non-strategic timberlands over the next two years."
Plum Creek is one of the largest land and timber owners in thenation, with over 8 million acres of timberlands in major timberproducing regions of the United States and 10 wood productsmanufacturing 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 "expects," or "may," or the negative ofthose words or other comparable terminology. The accuracy of suchstatements is subject to a number of risks, uncertainties andassumptions including, but not limited to the satisfaction ofcustomary closing conditions. This and other risks, uncertainties andassumptions are detailed from time to time in our filings with theSecurities and Exchange Commission under the Securities Exchange Actof 1934, as amended, and the Securities Act of 1933, as amended. It islikely that if one or more of the risks materializes, or if one ormore assumptions prove to be incorrect, the current expectations ofPlum Creek and its management will not be realized. Forward-lookingstatements are not guarantees of performance, and speak only as of thedate made, and neither Plum Creek nor its management undertakes anyobligation to update or revise any forward-looking statements.
CONTACT: Plum Creek Timber Company, Inc.
John Hobbs, 800-858-5347 (Investors)
Kathy Budinick, 206-467-3620 (Media)
SOURCE: Plum Creek Timber Company, Inc.