
                           [WTD PRESS RELEASE]

FOR IMMEDIATE RELEASE
---------------------

           WTD INDUSTRIES, INC. ADOPTS SHAREHOLDER RIGHTS PLAN


       Portland,  Oregon,  March  5,  1998  -- The  Board  of  Directors  of WTD
Industries,  Inc. (Nasdaq/NM:WTDI) has adopted a Shareholder Rights Plan and has
declared  a  distribution   of  one  Preferred  Share  Purchase  Right  on  each
outstanding share of common stock pursuant to the Plan.

       Bruce L. Engel, a Director and President of WTD Industries, Inc., stated:
"The Rights are designed to assure that all of WTD's  stockholders  receive fair
and equal treatment in the event of any proposed  takeover of the Company and to
guard against partial tender offers, squeeze-outs, open market accumulations and
other abusive  tactics to gain control of WTD without paying all  stockholders a
control premium."

       The Rights will be exercisable  only if a person or group acquires 15% or
more of WTD's  common  stock,  or, with respect to a person or group which as of
March 4, 1998 already owned 15% or more of WTD's then outstanding  common stock,
such person or group acquires 31% or more of WTD's common stock.  The Rights are
also  exercisable  if either such person or group  announces a tender  offer the
consummation  of which would result in ownership by a person or group of 15%/31%
or more of the common stock. The Company currently has one shareholder,

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Quinault Corporation, that owns approximately 30% of the Company's common stock.
Each Right will entitle  stockholders to buy one  one-hundredth  of a share of a
new  series of junior  participating  preferred  stock at an  exercise  price of
$7.50.

       If WTD is acquired in a merger or other business combination  transaction
after a person has acquired 15%/31% or more of the Company's  outstanding common
stock,  each  Right  will  entitle  its  holder  to  purchase,  at  the  Right's
then-current  exercise price, a number of the acquiring  company's common shares
having a market  value of twice such price.  In  addition,  if a person or group
acquires  15%/31% or more of WTD's  outstanding  common  stock,  each Right will
entitle its holder (other than such person or member of such group) to purchase,
at the Right's  then-current  exercise  price,  a number of WTD's common  shares
having a market value of twice such price.

       Following the acquisition by a person or group of beneficial ownership of
15%/31% or more of the Company's common stock and prior to an acquisition of 50%
or more of the common  stock,  the Board of  Directors  may  exchange the Rights
(other than Rights  owned by such person or group),  in whole or in part,  at an
exchange ratio of one share of common stock (or one  one-hundredth of a share of
the new series of junior participating preferred stock) per Right.

         Prior  to the  acquisition  by a person  or group of  beneficial
ownership of 15%/31% or more of the Company's  common  stock,  the Rights
are  redeemable  for one cent per  Right at the  option  of the  Board of
Directors.

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       The  Board  of  Directors  is  also  authorized  to  reduce  the  15%/31%
thresholds referred to above to not less than 10%.

       The Rights are  intended  to enable all WTD  stockholders  to realize the
long-term  value of their  investment  in the  Company.  They will not prevent a
takeover,  but  should  encourage  anyone  seeking  to  acquire  the  Company to
negotiate with the Board prior to attempting a takeover.

       The  distribution  was  declared by the  Company's  Board of Directors on
March 4, 1998, and attaches to common stock outstanding on that date. The Rights
will  expire  on March 4,  2008.  The  Rights  distribution  is not  taxable  to
stockholders.

       WTD  Industries,  Inc.  operates  facilities  in Oregon,  Washington  and
Vermont,  producing  softwood  and  hardwood  lumber  products.  WTD's lumber is
marketed domestically and internationally under the TreeSource brand name.

       WTD Industries,  Inc. can be seen at its web site http://www.wtdi.com and
TreeSource, Inc. can be seen at http://www.treesource.com.  For more information
contact Robert J. Riecke or Carol Nelson via telephone (503) 246-3440, facsimile
(503) 245-4229 or e-mail wtdi@wtdi.com.



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