Potlatch Plans to Rebuild Benewah Lake Trestle

Lewiston, Idaho, USA, 17 July 2006 -- Potlatch Forest Products Corporation today announced plans to repair the damaged section of a trestle that spans a section of Benewah Lake and resume operations of the company's St. Maries Railroad.

"After an exhaustive cost analysis study, we have concluded that repair of the trestle is in the best interest of our St. Maries sawmill and plywood operations, our customers and the community," said Greg Cooperrider, St. Maries sawmill and plywood plant complex manager. "We are very pleased to get our railroad employees working again and eager to have the railroad underway as soon as possible."

A section of the trestle collapsed when a maintenance crane car was crossing the span on 24 April 2006. The company has since removed most of the crane from the lake. Potlatch has worked with the state of Idaho and The Coeur d'Alene Tribe to ensure there is no residual environmental impact to the lake. The remaining pieces of the crane will be salvaged as the water recedes and repairs commence on the trestle.

"Our goal is to have the railroad up and running by the end of November 2006," said Cooperrider. "We are now in the early process of ordering steel, ties, and other materials, while working with our engineers to get the process underway."

Potlatch Forest Products Corporation is a subsidiary of Potlatch Corporation (NYSE:PCH), a real estate investment trust (REIT) with 1.5 million acres of forestland in Idaho, Minnesota, Arkansas, and Oregon. Potlatch Forest Products Corporation operates 13 manufacturing facilities that produce lumber and panel products and bleached pulp products, including paperboard, and tissue products.