Rayonier Completes Timberland Purchase

Jacksonville, Florida, USA, 15 November 2006 --(BUSINESS WIRE)-- Rayonier (NYSE:RYN) said today it has completed the previously announced purchase of timberland in six states from funds managed by GMO Renewable Resources, LLC. After adjustments, the transaction involved approximately 174,000 acres at a price of USD 151 million.

"The purchase is part of our strategy to increase both the size and geographic footprint of our REIT and enhances our product mix with the addition of several high-value hardwood species," said Lee Nutter, chairman, president, and CEO. "Also, the acquisition provides significant like-kind-exchange tax benefits, offering us further opportunity to efficiently develop our high-value real estate business."

The timber is located in New York, Texas, Oklahoma, Arkansas, Alabama, and Louisiana. With the acquisition, Rayonier becomes the fifth largest private timberland owner in the United States, with approximately 2.2 million acres.

GMO Renewable Resources, LLC, is an affiliate of Grantham, Mayo, Van Otterloo & Co., LLC, a global investment management firm.

About Rayonier

Rayonier is a leading international forest products company with three core businesses: Timber, Real Estate, and Performance Fibers. It owns, leases or manages 2.7 million acres of timber and land in the United States, New Zealand, and Australia. The company's holdings include approximately 200,000 acres with residential and commercial development potential along the fast-growing Interstate 95 corridor between Savannah, Georgia, and Daytona Beach, Florida. Its Performance Fibers business is the world's leading producer of high-value specialty cellulose. Approximately 40% of the company's sales are outside the United States to customers in more than 50 countries. For further information, visit the company's Web site at www.rayonier.com.