Apr 17, 2008. /Lesprom.com/. Potlatch Corporation announced that its Board of Directors has authorized management to evaluate a potential tax-free spin-off of the Company’s pulp-based businesses. A spin-off, if pursued, would create two stand-alone, publicly traded entities: a timber REIT, which is a verified forest practices leader with 1.65 million acres of forestland in Arkansas, Idaho, Minnesota and Wisconsin; and a pulp-based manufacturing company that would include Potlatch’s Consumer Products facilities in Lewiston, Idaho, Las Vegas, Nevada, and Elwood, Illinois, and its Pulp & Paperboard facilities in Lewiston, Idaho, and Cypress Bend, Arkansas. The businesses to be evaluated for spin-off had revenues of approximately $1.2 billion in 2007. The Wood Products business, which would be retained by Potlatch in a spin-off, would consist of four sawmills in Idaho, Arkansas, Minnesota and Michigan, and one industrial-grade plywood mill and one particleboard mill in Idaho. Potlatch’s Lewiston, Idaho, Wood Products Facility, which shares a common site with the Lewiston pulp-based facilities, would be included in the businesses to be spun off as a separate public company. In any event, Potlatch will remain headquartered in Spokane, Washington, and Mr. Covey will remain Chairman, President and CEO of Potlatch. As part of our evaluation process, Potlatch has retained Russell Reynolds Associates, an executive search firm, which will assist in an external search for a CEO for the proposed pulp-based manufacturing company. Any transaction would likely be completed during the 4Q 2008, subject to market, regulatory and other conditions. Potlatch owns 1.65 million acres of forestland in Arkansas, Idaho, Minnesota and Wisconsin, and operates 12 manufacturing facilities that produce lumber and panel products and bleached pulp products, including paperboard and tissue. The company, which employs 3,600 people, also conducts a land sales and development business. Potlatch, a verified forest practices leader, is committed to providing superior returns to stockholders through long-term stewardship of its resources.