Plum Creek Timber Company, Inc.

Seattle, Washington, USA, 06 February 2007 --(BUSINESS WIRE)-- Plum Creek Timber Company, Inc. (NYSE: PCL) today announced a quarterly cash dividend of USD 0.42 per share, an increase of USD 0.02 per share, or 5%. The dividend is payable on 02 March 2007, to shareholders of record as of 16 February 2007.

"The increase in our dividend is a direct result of our ability to generate attractive and sustainable cash flow from our businesses," said Rick Holley, president and chief executive officer. "We continue to generate excellent cash flow and anticipate our 2007 cash flow from operations will once again exceed USD 500 million. Paying a reliable and attractive dividend from the cash we generate each year is one of the most direct and transparent means we have of delivering shareholder value."

Plum Creek's dividend is expected to be characterized as long-term capital gain income primarily because the income generated by the sale of Plum Creek's timber is considered long-term capital gain. As such, Plum Creek's dividend is taxed at a maximum rate of 15% for most U.S. taxpayers.

Plum Creek is the largest and most geographically diverse private landowner in the nation. It has more than 8 million acres of timberlands in major timber producing regions of the United States and 10 wood products manufacturing facilities in the Northwest.