Potlatch Corporation

Spokane, Washington, USA, 07 December 2007 --(BUSINESS WIRE)-- The board of directors of Potlatch Corporation (NYSE:PCH) today approved a 4.1% increase in the company's quarterly dividend to USD 0.51 per common share. A quarterly distribution at the new rate is payable 31 December 2007, to stockholders of record on 17 December 2007.

"This dividend increase is in keeping with our goal to deliver exceptional long-term value to shareholders, and it reflects the board's confidence in the future direction of Potlatch and our ability to produce strong cash flows on a sustainable basis," said Michael J. Covey, chairman, president, and chief executive officer.

The Potlatch dividend rate was last increased 03 February 2006, effective with the 1st Quarter 2006 Distribution.

Potlatch is a Real Estate Investment Trust (REIT) with 1.7 million acres of forestland in Arkansas, Idaho, Minnesota, and Wisconsin. Through its taxable REIT subsidiary, the company also operates 13 manufacturing facilities that produce lumber and panel products and bleached pulp products, including paperboard and tissue. The company also conducts a real estate sales and development business through its taxable REIT subsidiary. Potlatch, a verified forest practices leader, is committed to providing superior returns to stockholders through long-term stewardship of its resources.