Plum Creek Announces Timberland Purchase and Comprehensive Resource Plan for its Lands in Maine's Greenville and Rockwood Areas.

SEATTLE -- Plum Creek Timber Company, Inc. (NYSE:PCL) today announced that it has signed an agreement to purchase 48,500 acres of timberland in Maine's Moosehead Lake and Sebec regions. This acquisition includes 19,000 acres in the town of Bowerbank, 8,900 acres in Beaver Cove Township, and 20,600 acres in Indian Stream and Squaretown Townships. This will bring the company's ownership in Maine to 953,000 acres. Terms of the sale have not been disclosed. The purchase is expected to close by year-end.

Plum Creek also announced that it is preparing a comprehensive Resource Plan for land the company owns in the Greenville and Rockwood areas. The Plan area will cover approximately 40 percent of the company ownership in the state. Plum Creek will file an application for the Plan with Maine's Land Use Regulation Commission in early 2005.

The Resource Plan will retain more than 95 percent of the land the company owns in the Plan area as a working forest for long-term timber production and conservation; provide public access over designated and planned trails in perpetuity; provide zoning for business development, tourism and recreation; prevent development by conserving land around a significant number of lakes and ponds; and allow for planned residential development.

"Plum Creek recognizes that the Greenville and Rockwood areas are a recreational hub and gateway to the Moosehead Lake region and the North Woods," said Rick Holley, president and chief executive officer. "That's why we're working to develop a thoughtful, long-term, comprehensive Plan that addresses the important community values and needs of this area of the State. This Plan will help maintain the economic viability of the forest products industry, preserve lands with significant conservation values, promote permanent recreation access to key trails, and stimulate job creation and economic development."

Additionally, Plum Creek has entered into discussions with the State of Maine Department of Conservation regarding the potential for new conservation transactions including the Roach Pond Region near the 100 Mile Wilderness Area, and the Moose River Bow Trip area of the state. In earlier conservation transactions, Plum Creek sold 29 miles of shoreline around Moosehead Lake and 445 acres along the Kennebec River to the state.

"In 1998, Plum Creek purchased more than 900,000 acres of timberland in Maine. Since then, the company has practiced sustainable forestry and allowed public access on all of its timberlands in the state," said Jim Lehner, general manager Northeast Region. "The company's purchase of an additional 48,500 acres of timberland in the state is evidence of Plum Creek's long-term commitment to Maine.

"We believe that the Resource Plan will be good for the citizens of Maine and good for Plum Creek. It will accommodate important community values and needs of the state, while providing Plum Creek a predictable environment in which to operate in the state over the long term."

Plum Creek is one of the largest private timberland owners in the nation, with approximately 8 million acres of timberlands in major timber producing regions of the United States and 10 wood products manufacturing facilities in the Northwest.