SEATTLE--(BUSINESS WIRE)--July 29, 2003--Plum Creek TimberCompany, Inc. (NYSE:PCL) announced today that its board of directorsapproved the purchase of approximately 139,000 acres of forestlandslocated in Arkansas, New Hampshire, and South Carolina.
The Company has signed a definitive agreement to purchase theseforestlands from Great Eastern Timber Company, LLC for $162 million incash. Plum Creek expects to complete the acquisition of the Arkansasand New Hampshire forests in the third quarter of 2003, and expects tocomplete the South Carolina acquisition in the fourth quarter of 2003.Plum Creek will finance the transaction using funds available under anexisting line of credit.
The purchase consists of approximately 38,000 acres of forestlandin Arkansas, 33,000 acres in New Hampshire, and 68,000 acres in SouthCarolina. The New Hampshire forestlands contain both softwood andmixed hardwood stands. The Southern forestlands are dominated bymature loblolly pine plantations.
"These well-managed lands fit well with our current ownership ineach of the three regions and provide additional operating flexibilityin these markets," said Rick Holley, Plum Creek's President and CEO.
Plum Creek is one of the largest land and timber owners in thenation with over 8 million acres of timberlands in major timberproducing regions throughout the United States and ten wood productmanufacturing 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. A number of important factors could cause actual resultsto differ materially from those described in the forward-lookingstatements. Some of these factors include, but are not limited to,changes in governmental, legislative and environmental restrictions;catastrophic losses from fires, floods, windstorms, earthquakes,volcanic eruptions, insect infestations or diseases; changes ineconomic conditions and competition in our domestic and exportmarkets; our failure to qualify as a REIT or our failure to achievethe expected competitive advantages of operating as a REIT; anunanticipated reduction in the demand for timber products and/or anunanticipated increase in the supply of timber products; our failureto make strategic acquisitions or to integrate any such acquisitionseffectively or, conversely, our failure to make strategicdivestitures; the failure to meet our expectations with respect to ourlikely future performance; and other factors described in our filingswith the Securities and Exchange Commission, which are available atthe web site maintained by the Securities and Exchange Commission at"http://www.sec.gov." It is likely that if one or more of the risksmaterializes, or if one or more assumptions proves to be incorrect,the current expectations of Plum Creek and its management will not berealized. Forward-looking statements speak only as of the date made,and neither Plum Creek nor its management undertakes any obligation toupdate or revise any forward-looking statements.
CONTACT: Plum Creek Timber Company, Inc.
John Hobbs, 1-800-858-5347
Director, Investor Relations
Bob Jirsa, 206/467-3626
Director, Corporate Affairs
SOURCE: Plum Creek Timber Company, Inc.