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September 1, 2005 Minneapolis, MN – National, regional and Minnesota conservation organizations today joined in celebrating certification of Potlatch Corporation’s (NYSE:PCH) 319,000 acres of Minnesota forestland and its Bemidji sawmill as being in compliance with standards of the internationally recognized Forest Stewardship Council – US® (FSC). The company plans on manufacturing FSC-certified spruce-pine-fir structural dimensional lumber from these certifications.

Potlatch Chairman and Chief Executive Officer L. Pendleton Siegel received documentation of the certification during ceremonies at the University of Minnesota from Dave Bubser, USA Manager for Smartwood, an FSC-accredited certifier. In presenting the certificates, Bubser noted, "With the FSC certification of their 319,000 acres of Minnesota forestlands as the final step in achieving certification for their entire 1.5 MM acre land base, Potlatch has placed themselves among the vanguard of industrial timber companies in the United States. "Our audit of Potlatch makes it clear that Potlatch has fully integrated the FSC standards into their core operating systems and have truly embraced the value of responsible stewardship. Potlatch has clearly distinguished themselves as a leader among their peers, both regionally and nationally," he concluded.

"Minnesota's natural resources are a fundamental part of our quality of life and it is our responsibility to be good stewards of those resources," Minnesota Governor Tim Pawlenty said in a letter to the company. "Potlatch's milestone conservation achievements highlight Minnesota's national leadership and our vision for long-term protection and the proper management of our unique natural resources."

Siegel stressed that the Minnesota FSC certifications represent yet another link in a chain of commitments to third-party oversight of the company’s management practices. He added that third-party certification demonstrates a commitment to stewardship publicly in ways that can benefit Potlatch shareholders as well as society and the environment. “In addition, with the certification of our Bemidji mill nearly all of our lumber and plywood manufacturing facilities are FSC chain-of-custody certified and authorized to market products with the FSC label,” he continued.

"In addition to Potlatch's forest management certification of their own land, the current and projected certifications of substantial amounts of public lands in Minnesota will extend the company's ability to supply FSC-labeled products to consumers," noted Roger Dower, President, FSC-US.

Robert Hrubes, Senior Vice President of Scientific Certification Systems (SCS) noted “SCS is very pleased to help commemorate the accomplishment of Potlatch’s company-wide FSC certification goal. Beginning with our certifications of Potlatch’s Hybrid Poplar operations in Oregon, in 2001, and the Idaho Resource Management Division in 2003, Potlatch Corporation has now achieved the highest standard of independent forest management certification for all of its forest operations. With this company-wide accomplishment, Potlatch has demonstrated to the entire forest products industry that publicly traded companies can practice exemplary forestry and, by doing so, can successfully engage the FSC.

“While FSC certification is a logical extension of Potlatch’s historical commitment to sound stewardship, we believe it will contribute significantly to our strategy of employing third-party certification to add to shareholder value,” Siegel said. “I would first note that the process of becoming certified makes us better land managers. Our foresters, some of who are here today, will tell you that the audits we undergo are rigorous, requiring us to be more demanding of ourselves and make continuous improvements in our practices and our knowledge of our resources. As a result, not only are our lands managed better from an environmental perspective, they are also more productive. As we have gained knowledge, we have improved our harvesting practices, which in turn have helped control costs while increasing output,” he explained.

Siegel added, “There appears to be a growing trend among large building products retailers, secondary manufacturers, architects, contractors and governments at all levels toward preferences for certified products, including FSC-certified products. “The company’s third-party certifications also continue to be instrumental in securing public and private support for cooperative conservation easements, which produce additional value for Potlatch shareholders while securing perpetual public access to the land and assuring proper management. Siegel explained that such easements are secured with the advise and partnership of conservation groups, including the Trust for Public Lands, The Conservation Fund and The Nature Conservancy.

“The Trust for Public Land is proud to work with Potlatch Corporation in Minnesota and elsewhere to protect our state’s working forests,” said Cynthia Whiteford, Regional Director for the Trust for Public Land. “Potlatch’s Forest Stewardship Council certification is an even further commitment to manage the lands at the highest level of sustainability,” added Whiteford. “The company’s commitment to sustainability serves the interest of the community and supports TPL’s mission of protecting land for people.”

To qualify for FSC certification, Potlatch’s management practices in Minnesota underwent a rigorous audit by SmartWood, the forest certification arm of the Rainforest Alliance. The findings in the audit process and Potlatch’s willingness to adapt certain practices resulted in Potlatch being awarded the FSC certification.

For more information see Potlatch Corporation’s website at www.potlatchcorp.com.

About FSC Forest certification enables consumers to make informed choices when selecting wood and other forest products. The Forest Stewardship Council, a 501(c)3 nonprofit organization, is the global and national leader in the independent certification of forests managed to exemplary standards covering environmental, social and economic issues. FSC promotes responsible forest management by evaluating and accrediting certifiers, by encouraging the development of national and regional forest management standards, and by providing public education and information about independent, third-party certification as a tool for ensuring that the world's forests are protected for future generations. There are currently nearly 30 million acres of FSC-certified forestland in North America and more than 131 million acres globally. Further information about FSC-US can be found at www.fscus.org.

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