Weyerhaeuser Signs Sale Agreement for U.S. Composite Panels Business

Federal Way, Washington, USA, 01 June 06 -- /PRNewswire/ -- Weyerhaeuser Company (NYSE:WY) today announced that it has signed an agreement to sell its six U.S. composite mills in the United States to Flakeboard Company Ltd.

The sale, which is subject to regulatory and board approval, is expected to close in the third quarter. Terms of the sale were not disclosed.

The locations to be sold include Albany, Oregon; Bennettsville, South Carolina; Eugene, Oregon; Malvern, Arkansas; and Simsboro, Louisiana. The mills, which produce medium density fiberboard (MDF) or particleboard, have the capacity to produce a total of 1.1 billion square feet annually.

"As part of our review to align our resources, we have determined that the composite panels business is no longer a strategic fit for Weyerhaeuser," said Steven R. Rogel, chairman, president, and chief executive officer. "We believe that the skilled employees at these highly competitive and efficient mills will provide greater value to Flakeboard, which is more focused on this line of business products."

Flakeboard is headquartered in Markham, Ontario, Canada, and currently has manufacturing facilities in Ontario and New Brunswick.

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/.