Dec 06, 2011. /Lesprom Network/. Potlatch Corporation announced that its Board of Directors has reduced the Company’s dividend to $1.24 per year or $0.31 per quarter. This reduction was made following the Company’s presentation of its 2012 annual plan to its Board of Directors, which included management recommendations to reduce harvest levels to preserve the long-term value of its strategic timberland holdings. Together with this dividend reduction, the Board approved the Company’s plan to temporarily reduce harvest levels by 15% to 3.5 million tons, until such time as log demand improves. “We have been able to support our dividend during a prolonged and unprecedented downturn in the housing market through very opportunistic non-strategic land and timber sales over the past couple of years,” said Michael Covey, Chairman, President and CEO. “However, with the continuing housing weakness coupled with weak southern log prices, it became clear that a reduction to the dividend commensurate with our harvest reductions for 2012 was the most prudent step to take to preserve long-term value for our shareholders. We recognize the importance of the dividend to our shareholders, and believe this new payout level remains attractive and is appropriate given current industry conditions. We are hopeful that shareholders recognize that these decisions support their long-term interests and balance the stewardship of the Company’s valuable assets, while meeting near term objectives. Following this dividend reduction, the Company’s dividend yield will be in-line with the rest of our industry peers with less financial risk, and preservation of asset value for shareholders. We will continue to monitor our markets and we will increase harvest levels as industry conditions improve,” concluded Mr. Covey. The distribution of $0.31 per share is payable December 29, 2011 to stockholders of record on December 15, 2011. Potlatch is a Real Estate Investment Trust (REIT) with approximately 1.45 million acres of timberland in Arkansas, Idaho, and Minnesota. Potlatch, a verified forest practices leader, is committed to providing superior returns to stockholders through long-term stewardship of its forest resources. The company also conducts a land sales and development business and operates wood products manufacturing facilities through its taxable REIT subsidiary.