Longview Fibre Company announces receipt of correspondence from Obsidian/Campbell

Jul 03, 2006. /Lesprom Network/. Longview Fibre Company announced that it received a letter, dated June 28, 2006, from Obsidian Finance Group, LLC and The Campbell Group, LLC in which they indicated they were revising their proposed price to $20.51 per share in cash, subject to mathematical reduction to the extent shares are issued in the company’s previously-announced special distribution at a value below their offer. The letter states that their proposed price per share takes into account the cash to be paid in the special distribution, and states that Obsidian/Campbell calculate that their new price equates to a pre-special distribution price of $28.05 per share. As was the case with their previous proposal, Obsidian/Campbell’s June 28 proposal, including price, is subject to certain conditions, including completion of satisfactory due diligence and financing. Obsidian/Campbell provided with their June 28 letter a copy of a letter from JPMorgan Chase Bank, N.A. relating to debt financing for their proposal. JPMorgan’s commitment to provide financing is subject to completion of satisfactory due diligence and a number of other conditions. Longview’s board of directors rejected Obsidian/Campbell’s previous proposal at a pre-special distribution price of $26 per share. The board of directors will review Obsidian/Campbell’s June 28 proposal in due course. Longview Fibre Company is a diversified timberlands owner and manager, and a specialty paper and container manufacturer. Using sustainable forestry methods, the company manages approximately 587 000 acres of softwood timberlands predominantly located in western Washington and Oregon, primarily for the sale of logs to the U.S. and Japanese markets. Longview Fibre’s manufacturing facilities include a pulp-paper mill at Longview, Washington; a network of converting plants; and a sawmill in central Washington. The company’s products include: logs; corrugated and solid-fiber containers; commodity and specialty kraft paper; paperboard; and dimension and specialty lumber.