Exhibit (12)

Potlatch Corporation

Computation of Ratio of Earnings to Fixed Charges

(in thousands)

		2005		2004		2003			2002			2001
Earnings (loss) from continuing operations before taxes on income		47,640		25,297		(12,990	)		(67,575	)		(71,471	)
Add:
Interest expense		29,045		45,863		48,172			59,882			77,853
Rental expense factor (1)		5,592		5,446		4,582			3,688			2,846
Discount and loan expense amortization		471		3,075		3,757			2,688			3,755
Earnings available for fixed charges		82,748		79,681		43,521			(1,317	)		12,983
Fixed charges:
Interest expense		29,045		45,863		48,172			59,882			77,853
Capitalized interest		—		383		2,907			300			1,032
Rental expense factor (1)		5,592		5,446		4,582			3,688			2,846
Discount and loan expense amortization		471		3,075		3,757			2,688			3,755
Total fixed charges		35,108		54,767		59,418			66,558			85,486
Ratio of earnings to fixed charges		2.4		1.5		0.7			0.0			0.2

(1) “Rental expense factor” is the portion of rental expense estimated to be representative of the interest factor within rental expense.

The dollar amount of deficiency in earnings available for fixed charges for a one-to-one ratio for the years 2003, 2002 and 2001 are $15,897, $67,875 and $72,503, respectively.