Weyerhaeuser Reacts to Weak Demand for Wood Products

Federal Way, Washington, USA, 06 December 2006 — Weyerhaeuser Company (NYSE: WY) today announced that challenging market conditions necessitate further actions, which could include closures, curtailments, and restricted operating postures at softwood lumber, engineered lumber, and structural panels operations across North America.

Downtime and restricted operating postures have already been undertaken at about 70% of Weyerhaeuser residential wood products facilities. These curtailments have led to significant fourth quarter production decreases across all product lines.

"Demand for wood products is very weak," said Steven R. Rogel, chairman, president, and chief executive officer. "We continue to analyze our operating postures and portfolio and expect additional capacity adjustments in the near term.

"We want to be clear that these actions are not related to the performance of employees. We recognize the hard work and dedication by our team this year," Rogel said. "Weyerhaeuser's employees work diligently to make our mills competitive and today's announcement is only a reflection of the challenging business environment we face."

Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2005, sales were USD 22.6 billion. It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com.