SEATTLE--(BUSINESS WIRE)--Oct. 8, 2001--Combined Company will be the Largest Pure Timber Company in the U. S.
Plum Creek Timber Company, Inc. (NYSE:PCL) today announced thecompletion of its merger with The Timber Company, making Plum Creekthe largest pure timber investment vehicle in the United States.
Plum Creek President and CEO Rick R. Holley said, "With over 7.8million acres in 19 states, a strong balance sheet, and unique REITstructure, the new Plum Creek is hitting the ground running. We havecombined the management talent and best practices from both companiesthat will allow Plum Creek to capitalize on opportunities that our newscale will bring. The new company offers a highly advantageous way forinvestors to own a well-managed and diversified portfolio of timberand lands."
"Plum Creek has an enviable track record of creating shareholdervalue," added Holley, "and the addition of these timberlands and theforestry professionals who manage them will help us continue to growand deliver superior financial returns."
"Plum Creek now owns timber in every fiber growing region of theUnited States," said Holley, "including substantial holdings in theSouth, where faster growth rates and strong long-term supply/demanddynamics make owning timberlands there particularly attractive. Inaddition, the new Plum Creek will have an increasing sustainableharvest rate and a land base that offers diverse opportunities forvalue creation and growth."
It is anticipated that Plum Creek's regular dividend for thefourth quarter of 2001 will be accelerated and paid prior to January31, 2002. Normally the fourth quarter dividend would be paid at theend of February. The timing of the third quarter dividend will remainthe same. These dividends will be payable to all shareholders of PlumCreek common stock as of the record dates to be set and announced byPlum Creek's Board of Directors. With the payment of these dividends,it is anticipated that all required distributions of historic earningsand profits from The Timber Company will have been made and no otherspecial dividends will be necessary to comply with applicable taxrules pertaining to REITs.
Under the terms of the merger, former shareholders of The TimberCompany are entitled to receive 1.37 shares of Plum Creek common stockfor each share of Timber Company stock previously held. Details andprocedures for surrendering Timber Company stock certificates in orderto receive Plum Creek shares will be mailed directly to Timber Companyshareholders.
Plum Creek, a real estate investment trust, is one of the largestland owners in the nation, with over 7.8 million acres of timberlandsin every significant timber-growing region of the United States andnine wood product mills in the Northwest.
More information on Plum Creek Timber Co. may be accessed at:http://www.businesswire.com/cnn/pcl.shtml.
This news release contains forward-looking statements within themeaning of the Private Litigation Reform Act of 1995. The accuracy ofsuch statements is subject to a number of risks, uncertainties andassumptions including, but not limited to, the effect of generaleconomic conditions on the demand for timber, particularly thestrength of the pulp and paper markets; the effect of any materialchanges in the available supply of timber, including the levels ofharvests from public lands; and the effect of government, legislativeand environmental restrictions on the harvesting of privatetimberlands. These risks are detailed from time to time in the filingsof Plum Creek with the Securities and Exchange Commission.Forward-looking statements speak only as of the date made, and neitherPlum Creek nor its management undertakes any obligation to update orrevise any forward-looking statements. It is likely that if one ormore of the risks and uncertainties materializes, the currentexpectations of Plum Creek and its management will not be realized.
|CONTACT:||Plum Creek Timber Company, Inc. |
| ||John Hobbs, 206/467-3628 or 800/858-5347|
| ||Bob Jirsa, 206/467-3626|