Potlatch Corp.

Potlatch Corp., Spokane, Washington, USA, said that a recent lawsuit filed by Procter & Gamble (P&G) Cincinnati, Ohio, USA will not affect Potlatch's US$ 66 million tissue expansion in Las Vegas, Nevada, USA. The lawsuit filed on November 8 in the Cincinnati Federal District Court alleges that the hiring by Potlatch of two former P&G employees may result in disclosure of P&G trade secrets. Potlatch officials noted that the Nevada tissue expansion project includes a 102-in. tissue machine that features technology under license from P&G and that P&G will assist in the 2004 start up of the expansion project.

In other news, Potlatch and the Trust for Public Land (TPL) have signed an agreement to pursue a working-forest conservation easement on substantial portions of Potlatch's 670,000 acres of Idaho forestlands. The conservation easement will be developed and implemented in phases over the next several years and would be a large easement in the nation. The project covers a large forested area of north central Idaho.

Potlatch Corp. will eliminate 106 salaried positions and realign staff and operational responsibilities across the company. Potlatch Chairman and CEO L. Pendleton Siegel said that the job eliminations and workforce realignments are the result of individual business unit evaluations and reflect the elimination of certain functions and job combinations and consolidations. Potlatch will take an estimated pre-tax charge of US$ 7.5 million in the 4th quarter of 2002 to cover anticipated costs associated with this action.