<SUBMISSION>
<ACCESSION-NUMBER>0001157523-09-003034
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20090428
<ITEMS>2.02
<ITEMS>9.01
<FILING-DATE>20090428
<DATE-OF-FILING-DATE-CHANGE>20090428
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>POTLATCH CORP
<CIK>0001338749
<ASSIGNED-SIC>6798
<IRS-NUMBER>820156045
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-32729
<FILM-NUMBER>09774099
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>601 WEST FIRST AVENUE
<STREET2>SUITE 1600
<CITY>SPOKANE
<STATE>WA
<ZIP>99201
<PHONE>(509) 835-1500
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>601 WEST FIRST AVENUE
<STREET2>SUITE 1600
<CITY>SPOKANE
<STATE>WA
<ZIP>99201
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>Potlatch Holdings, Inc.
<DATE-CHANGED>20050914
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a5950370.htm
<DESCRIPTION>POTLATCH CORP. 8-K
<TEXT>
<html>
  <head>
    <title></title>
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  <body style="font-size: 10pt; font-family: Times New Roman">
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>UNITED
      STATES</b></font><b><font style="font-family: Times New Roman; font-size: 12pt"><br style="font-size: 12pt; font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 12pt">SECURITIES
      AND EXCHANGE COMMISSION</font></b><br><font style="font-family: Times New Roman; font-size: 12pt"><b>WASHINGTON,
      DC 20549</b></font><br><br><br><font style="font-family: Times New Roman; font-size: 14pt"><b>FORM
      8-K</b></font><br><br><br><font style="font-family: Times New Roman; font-size: 12pt"><b>CURRENT
      REPORT PURSUANT</b></font><br><font style="font-family: Times New Roman; font-size: 12pt"><b>TO
      SECTION 13 OR 15(d) OF THE</b></font><br><font style="font-family: Times New Roman; font-size: 12pt"><b>SECURITIES
      EXCHANGE ACT OF 1934</b></font><br><br><br><u><font style="font-family: Times New Roman; font-size: 10pt">Date
      of Report: April 28, 2009</font></u><br><font style="font-family: Times New Roman; font-size: 10pt">(Date
      of earliest event reported)</font><br><br><br><font style="font-size: 12pt"><b>POTLATCH
      CORPORATION</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 14pt"><b>_______________________________</b></font><br><font style="font-family: Times New Roman; font-size: 10pt">(Exact
      name of registrant as specified in its charter)</font><br><br>
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 10pt">
      <tr>
        <td style="text-align: center; width: 33%; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>Delaware</b></u>
          </p>
        </td>
        <td style="text-align: center; padding-right: 0.0px; white-space: nowrap; width: 34%; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>001-32729</b></u>
          </p>
        </td>
        <td style="text-align: center; padding-right: 0.0px; white-space: nowrap; width: 33%; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>82-0156045</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; width: 33%; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (State or Other Jurisdiction
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            of Incorporation)
          </p>
        </td>
        <td style="text-align: center; width: 34%; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Commission
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            File Number)
          </p>
        </td>
        <td style="text-align: center; width: 33%; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (I.R.S. Employer
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            Identification Number)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 10pt">
      <tr>
        <td style="text-align: center; width: 67%; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>601 W. First Avenue, Suite 1600, Spokane WA</b></u>
          </p>
        </td>
        <td style="text-align: center; padding-right: 0.0px; white-space: nowrap; width: 33%; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>99201</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; width: 67%; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td style="text-align: center; width: 33%; padding-left: 0.0px" valign="bottom">
          <font style="font-size: 10pt; font-family: Times New Roman">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <u><b>509-835-1500</b></u><br>(<font style="font-size: 10pt; font-family: Times New Roman">Registrant&#8217;s
      telephone number,</font><br><font style="font-size: 10pt; font-family: Times New Roman">
      Including area code)</font><br>
    </p>
    <p>

    </p>
    <p style="font-family: Times New Roman; text-indent: 30.0px; font-size: 10pt">
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions: </font>(<i>see </i>General Instruction A.2.
      below):
    </p>
    <p style="font-family: Times New Roman; text-indent: 30.0px; font-size: 10pt">
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p style="font-family: Times New Roman; text-indent: 30.0px; font-size: 10pt">
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p style="font-family: Times New Roman; text-indent: 30.0px; font-size: 10pt">
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p style="font-family: Times New Roman; text-indent: 30.0px; font-size: 10pt">
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <div style="margin-left: 0pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman"><b>Item
      2.02.&#160;&#160;&#160;&#160;Results of Operations and Financial Condition.</b></font><br>
    </p>
    <p style="font-family: Times New Roman; text-indent: 30.0px; font-size: 10pt">
      On April 28, 2009, Potlatch Corporation announced its results of
      operations and financial condition for the quarter ended March 31,
      2009.&#160;&#160;The press release containing this announcement is furnished as
      Exhibit 99.1 hereto.
    </p>
    <p style="white-space: nowrap">

    </p>
    <p style="font-family: Times New Roman; text-indent: 30.0px; font-size: 10pt">
      The information in this Form 8-K and the Exhibit attached hereto shall
      not be deemed &#8220;filed&#8221; for purposes of Section 18 of the Securities
      Exchange Act of 1934, as amended, nor shall it be deemed incorporated by
      reference in any filing under the Securities Act of 1933, except as
      shall be expressly set forth by specific reference in such filing.&#160;&#160;&#160;&#160;
    </p>
    <p>

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman"><b>Item
      9.01.&#160;&#160;&#160;&#160;&#160;Financial Statements and Exhibits.</b></font><br>
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 10pt">
      <tr>
        <td style="text-align: left; width: 2%; padding-left: 0.0px" valign="top">
          &#160;
        </td>
        <td style="text-align: left; width: 3%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>(d)</i>
          </p>
        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>Exhibits.</i>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 2%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 5%">

        </td>
        <td style="width: 90%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 2%; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: left; width: 3%; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; width: 5%; padding-left: 0.0px" valign="top">
          99.1
        </td>
        <td style="text-align: left; width: 90%; padding-left: 0.0px" valign="top">
          Press release issued by Potlatch Corporation, dated April 28, 2009.
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 2%; padding-left: 0.0px" valign="top">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 5%">

        </td>
        <td style="width: 90%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 2%; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: left; width: 3%; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: left; width: 5%; padding-left: 0.0px" valign="top">

        </td>
        <td style="text-align: left; width: 90%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>POTLATCH REPORTS FIRST QUARTER RESULTS</u>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: left">

    </p>
    <div style="margin-left: 0pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman">SIGNATURE</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the Registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 10pt">
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Dated: April 28, 2009
          </p>
        </td>
        <td style="width: 50%">

        </td>
      </tr>
      <tr>
        <td colspan="2">

        </td>
        <td style="width: 50%">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2">

        </td>
        <td style="width: 50%">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            POTLATCH CORPORATION
          </p>
        </td>
        <td style="width: 50%">

        </td>
      </tr>
      <tr>
        <td colspan="2">

        </td>
        <td style="width: 50%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; width: 4%; padding-bottom: 2.0px; padding-left: 0.0px" valign="top">
          By:
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; width: 46%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Pamela Mull
          </p>
        </td>
        <td style="width: 50%">

        </td>
      </tr>
      <tr>
        <td style="width: 4%">

        </td>
        <td style="text-align: left; width: 46%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Pamela Mull
          </p>
        </td>
        <td style="width: 50%">

        </td>
      </tr>
      <tr>
        <td style="width: 4%">

        </td>
        <td style="text-align: left; width: 46%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Corporate Secretary
          </p>
        </td>
        <td style="width: 50%">

        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-left: 0pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman">EXHIBIT INDEX</font><br><br>
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 10pt">
      <tr>
        <td style="text-align: left; width: 16%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>Exhibit</u>
          </p>
        </td>
        <td style="text-align: left; width: 84%; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>Description</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 16%">

        </td>
        <td style="width: 84%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; width: 16%; padding-left: 0.0px" valign="top">
          99.1
        </td>
        <td style="text-align: left; width: 84%; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Press release issued by Potlatch Corporation, dated April 28, 2009.
          </p>
        </td>
      </tr>
    </table>
    </div>
  </body>
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     PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5950370ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2008 Business Wire, a Berkshire Hathaway company.-->
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  </head>
  <body style="font-size: 8pt; font-family: Times New Roman">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Potlatch
      Reports First Quarter 2009 Results</b></font>
    </p>
    <p>
      SPOKANE, Wash.--(BUSINESS WIRE)--April 28, 2009--<b>Potlatch Corporation
      (NYSE:PCH)</b> today reported financial results for the first quarter
      ended March 31, 2009.
    </p>
    <p>
      <b>Q1 2009 Financial Summary</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Earnings from continuing operations for the quarter were $28.8
        million, or $0.72 per diluted common share, compared to $23.3 million,
        or $0.59 per diluted common share for Q1 2008.
      </li>
      <li style="margin-bottom: 10.0px">
        Net earnings for the quarter, including discontinued operations, were
        $24.8 million, or $0.62 per diluted common share, compared to $10.3
        million, or $0.26 per diluted common share for Q1 2008.

        <ul>
          <li style="margin-bottom: 10.0px">
            Discontinued operations for both periods included the effects of
            the spin-off of the Clearwater Paper operations and the closure of
            our Prescott, Arkansas lumber mill.
          </li>
          <li style="margin-bottom: 10.0px">
            Q1 2009 discontinued operations results also included a pre-tax
            charge of $5.75 million for a tentative legal settlement related
            to the sale of our oriented strand board, or OSB, manufacturing
            facilities in 2004.
          </li>
          <li style="margin-bottom: 10.0px">
            Q1 2008 discontinued operations results also included a pre-tax
            charge of $2.7 million related to a settlement with the direct
            purchaser class in the OSB antitrust lawsuit.
          </li>
        </ul>
      </li>
    </ul>
    <ul>
      <li style="margin-bottom: 10.0px">
        Cash provided by operating activities from continuing operations was
        $41.6 million for Q1 2009 compared to $13.5 million for Q1 2008.
      </li>
    </ul>
    <p>
      &#8220;The Resource segment had lower earnings in Q1 2009, primarily due to
      decreased pricing in both the southern and northern regions and lower
      harvest levels in the northern region during the quarter,&#8221; said Michael
      J. Covey, chairman, president and chief executive officer. &#8220;Compared to
      Q1 2008, sawlog pricing was approximately 25 percent lower in the
      northern region and approximately 15 percent lower in the southern
      region, while pulpwood pricing increased slightly in the northern region
      and decreased 12 percent in the southern region.
    </p>
    <div style="margin-left: 0pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      &#8220;The Real Estate segment had excellent results in Q1 2009 compared to Q1
      2008 primarily due to a large sale of land in Arkansas in January 2009.
    </p>
    <p>
      &#8220;The Wood Products segment continued to experience extremely weak market
      conditions, with an operating loss of $11.2 million in Q1 2009 compared
      to a loss of $6.5 million in Q1 2008. Most of our wood products mills
      ran at reduced production levels since the beginning of this year as we
      took steps to mitigate losses. Since January, monthly results have
      improved and the operating loss has been cut in half with continued
      improvement expected,&#8221; concluded Covey.
    </p>
    <p>
      <b>Q1 2009 Business Performance</b>
    </p>
    <p>
      <u>Resource</u>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Operating income for the segment was $10.8 million, compared to $17.2
        million earned in Q1 2008.
      </li>
    </ul>
    <p>
      Southern Region
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Fee harvest levels increased 34 percent in Q1 2009 compared to Q1
        2008, primarily due to excellent logging conditions and stable demand
        from customers which allowed us to accelerate harvesting planned for
        later in the year.
      </li>
      <li style="margin-bottom: 10.0px">
        Sawlog pricing was lower by 15 percent, while pulpwood pricing was
        lower by 12 percent in Q1 2009 compared to Q1 2008.
      </li>
    </ul>
    <p>
      Northern Region
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Fee harvest levels decreased 20 percent in Q1 2009 compared to Q1 2008
        primarily to match log production with weaker demand caused by lumber
        mill curtailments.
      </li>
      <li style="margin-bottom: 10.0px">
        Sawlog pricing was lower by 25 percent, while pulpwood pricing
        increased 1 percent in Q1 2009 compared to Q1 2008.
      </li>
    </ul>
    <p>
      <u>Real Estate</u>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Operating income for the segment was $41.5 million in Q1 2009,
        compared to $16.7 million in Q1 2008.

        <ul>
          <li style="margin-bottom: 10.0px">
            We sold approximately 24,500 acres of timberland in Arkansas in
            January 2009 for approximately $43.3 million, or $1,760 per acre.
            Other lands sales in Q1 2009 totaled approximately 5,500 acres at
            an overall average price of approximately $880 per acre.
          </li>
          <li style="margin-bottom: 10.0px">
            We sold approximately 23,500 acres of land in Minnesota in Q1 2008
            at an average price of approximately $370 per acre. Other lands
            sales in Q1 2008 totaled approximately 5,500 acres at an average
            price of nearly $2,250 per acre.
          </li>
        </ul>
      </li>
    </ul>
    <div style="margin-left: 0pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <u>Wood Products</u>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        The segment reported an operating loss of $11.2 million for Q1 2009,
        compared to a loss of $6.5 million for Q1 2008.

        <ul>
          <li style="margin-bottom: 10.0px">
            Lumber results were negatively impacted by the continued downturn
            in the housing market, resulting in lower net sales prices and
            shipments.
          </li>
          <li style="margin-bottom: 10.0px">
            Most of our mills were operating with reduced production schedules
            during Q1 2009.
          </li>
        </ul>
      </li>
    </ul>
    <p>
      <u>Dividend Distribution</u>
    </p>
    <p>
      During the first quarter, Potlatch paid a regular quarterly cash
      distribution on the company&#8217;s common stock of $0.51 per share.
    </p>
    <p>
      <b>Outlook</b>
    </p>
    <p>
      &#8220;Looking ahead, the second quarter is our weakest of the year due to
      seasonal harvest curtailments in the Northern region caused by load
      weight restrictions on roads and spring breakup conditions that limit
      access to logging sites,&#8221; Covey said. &#8220;Harvest levels for the remainder
      of 2009 are dependent to a large degree on pricing and demand. A number
      of sawmills in Idaho have curtailed or closed due to weak lumber
      pricing, and it is uncertain when they will resume full operation.
      Regarding our Real Estate segment, demand and interest in non-strategic
      timberland and rural recreational real estate continues to be relatively
      stable, although the demand for HBU lands remains soft. We expect
      continued weakness from our Wood Products business through much of 2009,
      but we are starting to see improvement in monthly results and expect the
      mills to perform at cash breakeven levels during the second quarter.&#8221;
    </p>
    <p>
      <b>Conference Call Information</b>
    </p>
    <p>
      A live webcast and conference call will be held today, April 28, 2009,
      at 8 a.m. Pacific time (11 a.m. Eastern). Those interested may access
      the webcast at <u>www.potlatchcorp.com</u> and conference call by
      dialing 866-393-8403 for U.S./Canada and 973-638-3465 for international
      callers. Participants will be asked to provide conference I.D. number
      90566563. Supplemental materials discussed during the call are available
      on our Web site.
    </p>
    <p>
      For those unable to participate in the call, an archived recording will
      be available through the Potlatch Corporation Web site at <u>www.potlatchcorp.com</u>
      for approximately one year following the conference call. A telephone
      replay of the conference call will be available until May 5, 2009, by
      calling 800-642-1687 for U.S./Canada or 706-645-9291 for international
      callers and entering passcode number 90566563.
    </p>
    <div style="margin-left: 0pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>About Potlatch</b>
    </p>
    <p>
      Potlatch is a Real Estate Investment Trust (REIT) with approximately 1.6
      million acres of timberland in Arkansas, Idaho, Minnesota and Wisconsin.
      Potlatch, a verified forest practices leader, is committed to providing
      superior returns to stockholders through long-term stewardship of its
      forest resources. The company also conducts a land sales and development
      business and operates wood products manufacturing facilities through its
      taxable REIT subsidiary.
    </p>
    <p>
      <b>Forward-Looking Statements</b>
    </p>
    <p>
      This press release contains certain forward-looking statements within
      the meaning of the Private Litigation Reform Act of 1995 as amended,
      including without limitation statements about future company
      performance, direction of markets, facility shutdowns, log pricing,
      future harvest levels, demand for real estate, lumber pricing and lumber
      mill closures, and the results of efforts to minimize losses in our Wood
      Products segment. These forward-looking statements are based on current
      expectations, estimates, assumptions and projections that are subject to
      change, and actual results may differ materially from the
      forward-looking statements. Factors that could cause actual results to
      differ materially include, but are not limited to: changes in timberland
      values; changes in timber harvest levels on the company&#8217;s lands; changes
      in timber prices; changes in policy regarding governmental timber sales;
      changes in the United States and international economies; changes in the
      level of construction activity; changes in tariffs, quotas and trade
      agreements involving wood products; changes in demand for our products;
      changes in production and production capacity in the forest products
      industry; competitive pricing pressures for our products; unanticipated
      manufacturing disruptions; changes in general and industry-specific
      environmental laws and regulations; unforeseen environmental liabilities
      or expenditures; weather conditions; changes in raw material and other
      costs; the ability to satisfy complex rules in order to remain qualified
      as a REIT; changes in tax laws that could reduce the benefits associated
      with REIT status; and other risks and uncertainties described from time
      to time in the company&#8217;s public filings with the Securities and Exchange
      Commission. The company does not undertake to update any forward-looking
      statements.
    </p>
    <div style="margin-left: 0pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td colspan="10">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="10">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="10">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="10" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Potlatch Corporation and Consolidated Subsidiaries
        </td>
      </tr>
      <tr>
        <td colspan="10" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Statements of Operations and Comprehensive Income
        </td>
      </tr>
      <tr>
        <td colspan="10" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Unaudited (Dollars in thousands - except per-share amounts)
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Three Months Ended
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          March 31,
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2009
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2008
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Revenues
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          129,593
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          112,559
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Costs and expenses:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="text-align: right; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Depreciation, depletion and amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          6,612
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          7,407
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Materials, labor and other operating expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          77,893
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          71,468
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Selling, general and administrative expenses
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          9,177
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          12,656
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          93,682
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          91,531
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Earnings from continuing operations before interest and taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          35,911
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          21,028
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (4,834
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (5,281
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Interest income
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          30
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          328
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Earnings from continuing operations before taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          31,107
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          16,075
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Income tax (provision) benefit
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (2,336
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          7,212
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Earnings from continuing operations
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          28,771
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          23,287
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Discontinued operations:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Loss from discontinued operations (including losses on disposal of
            $- and $(19,100))
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (6,554
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (22,060
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Income tax benefit
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2,603
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          9,032
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (3,951
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (13,028
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="top">
          Net earnings
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          24,820
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          10,259
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Other comprehensive income, net of tax
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          955
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2,038
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="top">
          Comprehensive income
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          25,775
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          12,297
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Earnings per common share from continuing operations
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          0.72
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          0.59
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          0.72
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          0.59
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Loss per common share from discontinued operations
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (0.10
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (0.33
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (0.10
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (0.33
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Net earnings per common share:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          0.62
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          0.26
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          0.62
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          0.26
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Average shares outstanding (in thousands):
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          39,742
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          39,316
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 10.0px" valign="top">
          Diluted
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          39,848
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          39,536
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="10" style="text-align: left; padding-left: 0.0px" valign="top">
          Certain 2008 amounts have been reclassified to conform to the 2009
          presentation.
        </td>
      </tr>
      <tr>
        <td colspan="10">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="10">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="10">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td colspan="11" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Potlatch Corporation and Consolidated Subsidiaries
        </td>
      </tr>
      <tr>
        <td colspan="11" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Condensed Balance Sheets
        </td>
      </tr>
      <tr>
        <td colspan="11" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Unaudited (Dollars in thousands - except per-share amounts)
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          March 31,
        </td>
        <td>

        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          December 31,
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2009
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2008
        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Assets
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Current assets:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="text-align: right; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Cash
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          1,117
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          885
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Short-term investments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          5,725
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          3,034
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Receivables, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          18,435
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          38,750
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Note receivable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          100,000
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          100,000
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Inventories
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          29,970
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          36,686
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Other assets
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          16,863
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          16,423
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Total current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          172,110
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          195,778
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Land, other than timberlands
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          3,521
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          3,521
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Plant and equipment, at cost less accumulated depreciation
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          81,079
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          82,613
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Timber, timberlands and related deposits, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          548,041
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          553,913
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Deferred tax assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          85,864
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          74,653
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Other assets
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          27,279
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          27,843
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          917,894
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          938,321
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Liabilities and Stockholders' Equity
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Current liabilities:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Current installments on long-term debt
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          100,010
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          100,410
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Current notes payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          96,000
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          129,100
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Accounts payable and accrued liabilities
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          66,839
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          57,635
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Total current liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          262,849
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          287,145
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Long-term debt
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          220,936
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          220,927
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Liability for pensions and other postretirement employee benefits
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          215,051
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          216,926
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Other long-term obligations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          14,423
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          15,089
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Stockholders' equity
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          204,635
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          198,234
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          917,894
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          938,321
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Stockholders' equity per common share
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          5.15
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          4.99
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Working capital
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (90,739
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (91,367
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Current ratio
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="2" style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          0.7:1
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="2" style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          0.7:1
        </td>
      </tr>
      <tr>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td colspan="12" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Potlatch Corporation and Consolidated Subsidiaries
        </td>
      </tr>
      <tr>
        <td colspan="12" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Condensed Statements of Cash Flows
        </td>
      </tr>
      <tr>
        <td colspan="12" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Unaudited (Dollars in thousands)
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Three Months Ended
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          March 31,
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2009
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2008
        </td>
      </tr>
      <tr>
        <td colspan="4" style="text-align: left; padding-left: 0.0px" valign="top">
          Cash Flows From Continuing Operations
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Net earnings
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          24,820
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          10,259
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Adjustments to reconcile net earnings to net operating cash flows
            from continuing operations:
          </p>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Loss from discontinued operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          3,951
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          1,377
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Loss on disposal of discontinued operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          11,651
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Depreciation, depletion and amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          6,612
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          7,407
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Proceeds from sales deposited with a like-kind exchange intermediary
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (2,030
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (19,042
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Basis of real estate sold
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          5,148
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          3,134
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Deferred taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (9,219
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (514
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Equity-based compensation expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          847
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          893
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Employee benefit plans
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (1,242
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          94
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Other
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          54
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Working capital changes
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          12,713
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (1,860
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Net cash provided by operating activities from continuing operations
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          41,600
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          13,453
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" style="text-align: left; padding-left: 0.0px" valign="top">
          Cash Flows From Investing
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Change in short-term investments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          15,549
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          13,462
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Additions to plant and properties
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (2,462
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (18,523
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Deposits on timberlands
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (27,328
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Other, net
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (532
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (703
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Net cash provided by (used for) investing activities from continuing
          operations
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          12,555
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (33,092
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="4" style="text-align: left; padding-left: 0.0px" valign="top">
          Cash Flows From Financing
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Change in book overdrafts
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          576
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (4,464
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Increase (decrease) in notes payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (33,100
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          29,700
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Issuance of common stock
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          48
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          316
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Repayment of long-term debt
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (391
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (191
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Distributions to common stockholders
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (20,269
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (20,087
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Other, net
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (53
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (2,460
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Net cash provided by (used for) financing activities from continuing
          operations
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (53,189
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2,814
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" style="text-align: left; padding-left: 0.0px" valign="top">
          Cash flows provided by (used for) continuing operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          966
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (16,825
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="4" style="text-align: left; padding-left: 0.0px" valign="top">
          Cash flows of discontinued operations:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Operating cash flows
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (734
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          16,414
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Investing cash flows
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (2,243
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Financing cash flows
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (18
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="4" style="text-align: left; padding-left: 0.0px" valign="top">
          Increase (decrease) in cash
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          232
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (2,672
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="4" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Cash at beginning of period
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          885
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          9,047
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" style="text-align: left; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="top">
          Cash at end of period
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          1,117
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          6,375
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="12" style="text-align: left; padding-left: 0.0px" valign="top">
          Certain 2008 amounts have been reclassified to conform to the 2009
          presentation.
        </td>
      </tr>
      <tr>
        <td colspan="12">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="12">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="12">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-left: 0pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; width: 100%; margin-bottom: 10.0px; font-size: 8pt">
      <tr>
        <td colspan="11" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Potlatch Corporation and Consolidated Subsidiaries
        </td>
      </tr>
      <tr>
        <td colspan="11" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Highlights
        </td>
      </tr>
      <tr>
        <td colspan="11" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Unaudited (Dollars in thousands - except per-share amounts)
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="text-align: center; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="top">
          Three Months Ended
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          March 31,
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2009
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2008
        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="top">
          Cash distributions per common share
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          0.51
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          0.51
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="11" style="text-align: center; padding-left: 0.0px" valign="top">
          Segment Information
        </td>
      </tr>
      <tr>
        <td colspan="11" style="text-align: center; padding-left: 0.0px" valign="top">
          Unaudited (Dollars in thousands)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="text-align: center; padding-left: 0.0px" valign="top">
          Three Months Ended
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          March 31,
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2009
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          2008
        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Revenues
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Resource
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          47,206
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          60,755
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Real Estate
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          48,036
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          21,140
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Wood Products
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Lumber
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          27,865
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          36,057
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Plywood
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          6,073
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          14,085
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Particleboard
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          2,449
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          4,428
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Other
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          8,442
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          10,647
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          44,829
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          65,217
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          140,071
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          147,112
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Intersegment revenues
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (10,478
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (34,553
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="top">
          Total consolidated revenues
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          129,593
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          112,559
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; padding-left: 0.0px" valign="top">
          Operating income (loss)
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Resource
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          10,846
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          17,195
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Real Estate
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          41,512
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          16,651
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="text-align: left; padding-left: 0.0px" valign="top">
          Wood Products
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (11,183
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          (6,450
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="2" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Eliminations and adjustments
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          751
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            1,673
          </p>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          41,926
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px" valign="bottom">
          29,069
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          Corporate
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (10,819
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          (12,994
        </td>
        <td style="text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="3" style="text-align: left; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Earnings from continuing operations before taxes
          </p>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          31,107
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom: double black 2.25pt; padding-left: 0.0px" valign="bottom">
          16,075
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="11" style="text-align: left; padding-left: 0.0px" valign="top">
          Certain 2008 amounts have been reclassified to conform to the 2009
          presentation.
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br>Potlatch Corporation<br>Media<br>Mark Benson, 509-835-1513<br>Investors<br>Eric
      Cremers, 509-835-1521
    </p>
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</TEXT>
</DOCUMENT>
</SUBMISSION>
