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DAIN BOSWORTH INCORPORATED COMMENTS ON UPCOMING NORTHWEST FOREST SUMMIT

 SEATTLE, March 26 /PRNewswire/ -- The following was released today by Dain Bosworth Incorporated:
 -- Plenty of Discussion -- But No Quick Fixes
 -- Private Timber Ownership Still Gives Competitive Advantage
 -- Engineered Wood Could Be Viewed as a Viable Substitute
 President Clinton's upcoming forest conference is scheduled for April 1-2 in Portland, Ore. As noted in the Seattle Post-Intelligencer and The Oregonian newspapers, there is bound to be plenty of discussion given the heavy media campaigns by various interest groups. Look for everything from 1960s style protests, prayer vigils, a "tent city" and even a flotilla of salmon fishing boats. As a practical matter, Dain Bosworth Incorporated believes that for all the rhetoric that will be exchanged, there are certain indisputable facts that cannot be altered.
 FACT: U.S. Forest Service timber under contract (i.e., inventories) in Oregon and Washington are down 75 percent versus 10-year ago levels. The so-called timber problem lies with the public lands, and is a result of overcutting that occurred during the 1980s, and not from spotted owls or marbled murrelets.
 FACT: The normalized growth rate for trees west of the Cascade Mountains is about 500 board feet annually per acre and 250 board feet annually per acre east of the Cascades. Any change in public forest practices will take many years to yield any sustainable benefits.
 Dain Bosworth Incorporated believes there is a possibility that some increased public harvests may be allowed in Idaho and Montana. This would be a move to preserve existing "old growth" forests in Oregon and Washington -- where much of the recent controversy has centered -- and meet some of the current regional demand for additional saw logs. This is not a permanent solution. It also does not take into account that existing mills that have been shuttered because of supply constraints, have equipment that is configured to only process the wider diameter (i.e., old growth) logs. Therefore, private timber owners such as Longview Fibre (NYSE: LFB) and Weyerhaeuser (NYSE: WY) still have a significant competitive advantage within the region. The recurring concern over a ban on private log exports may arise during the summit, but it has never received broad support or even consideration by Congress. Moreover, with domestic demand improving, this tends to mute this recommendation. While it has also been speculated that an excess profits tax on this business could be proposed (especially given President Clinton's current propensity to raise taxes), Dain Bosworth Incorporated's view is the summit may focus on how to improve public forest management practices rather than hurting the private timber owners. Again, this is because the key question is how to implement multiple use forest practices (i.e., recreation, preservation and logging) on existing public lands. Perhaps the Black Forest model from Europe may be examined as a potential solution.
 When all is said and done, engineered wood (heretofore seen as a small market segment) may be the biggest winner of all. Since companies like TJ International (NASDAQ: TJCO) are able to use a wider variety of tree species and have a greater recovery ratio of wood actually processed into finished product (75 percent versus 40 percent with traditional saw logs), investors may start to view this business as a growth opportunity. This is because the substitution factor could sustain growth beyond the cyclical recovery phase. Although TJCO still has not been able to catch up with rising costs through product price increases, it still is worth a second look.
 -0- 3/26/93
 /CONTACT: Dave Endicott, APR, vice president, of Communication Northwest, 206-285-7070, for Dain Bosworth; or George Haloulakos, CFA, vice president and research analyst, of Dain Bosworth, 206-621-3118/
 (LFB WY TJCO)


CO: Dain Bosworth Inc. ST: Washington, Oregon, District of Columbia IN: PAP SU:

TP-SW -- SE009 -- 0221 03/26/93 18:41 EST
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Date:Mar 26, 1993
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