Rayonier to Acquire 55,000 Acres of Timberland in Texas

Jacksonville, Florida, USA, 30 November 2006--(BUSINESS WIRE)--Rayonier (NYSE:RYN) announced today it has agreed to acquire 55,000 acres of high-quality timberland in Texas for USD 121 million from an investment fund advised by Global Forest Partners LP. The transaction is expected to close by year-end.

The well-managed timberland has an unusually large percentage of immediately harvestable, high-value pine sawtimber. In addition, the property is located approximately 70 miles north of Houston along Interstate 45 in an area with good demand for rural land.

"This property is an excellent fit for Rayonier," said Lee Nutter, chairman, president, and CEO. "Because of the very high percentage of mature timber and its exceptional quality, the transaction will be immediately cash accretive. The property also complements the 31,000 acres of timberland we recently acquired in Texas. In addition to increasing our timberland base, this purchase provides very significant like-kind-exchange tax benefits, giving us further opportunity to efficiently develop our high-value real estate business along the I-95 coastal corridor in Georgia and northeast Florida."

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 fibers. Approximately 40% of the company's sales are outside the United States to customers in more than 50 countries.

About Global Forest Partners LP

Global Forest Partners LP is an SEC-registered investment adviser that structures and manages innovative timberland investments on behalf of institutional and other qualified investors worldwide. As of 30 September 2006, the firm managed approximately USD 1.6 billion for over 100 clients.