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PLUM CREEK TIMBER CO., L.P., ANNOUNCES INCREASE IN QUARTERLY DISTRIBUTION TO UNITHOLDERS, HIGHER SECOND-QUARTER EARNINGS

PLUM CREEK TIMBER CO., L.P., ANNOUNCES INCREASE IN QUARTERLY
 DISTRIBUTION TO UNITHOLDERS, HIGHER SECOND-QUARTER EARNINGS
 SEATTLE, Aug. 4 /PRNewswire/ -- Plum Creek Timber Co., L.P. (NYSE: PCL) today announced that the company was increasing its distribution from 80 cents per unit to 90 cents per unit for the quarter ending June 30, 1992. This represents the third increase in the distribution since the company went public in June 1989, which now represents a 50-percent increase over the original distribution level of 60 cents per unit. The distribution will be paid on Aug. 28 to unitholders of record as of Aug. 17.
 The company reported that combined earnings for the second quarter more than tripled to $14.6 million, or 92 cents per unit, compared to $4.5 million, or 26 cents per unit, for the prior-year quarter. Combined earnings for the first six months of 1992 were $23.7 million, or $1.50 per unit, compared to $1.2 million, or 1 cent per unit, in 1991. Revenues for the first half of 1992 were 15 percent above the 1991 level.
 Commenting on the company's distribution increase and financial results, David D. Leland, president and chief executive officer, said, "Plum Creek increased the quarterly distribution to 90 cents per unit as a result of our strong current and anticipated future financial performance and continued focus on maximizing unitholder value.
 "Our financial performance for the year has been excellent. The improvement in year-to-date earnings was the result of higher prices in all of our product lines and higher volumes in lumber, plywood and medium-density fiberboard. Lumber and plywood prices for the second quarter of 1992 were up 19 percent and 20 percent, respectively, from the second quarter of 1991. During the same period, prices for export and domestic logs were up 21 percent and 29 percent, respectively.
 "The improvement in lumber and plywood pricing was due to an upturn in the repair and remodel and industrial market segments to which the majority of these products are sold. Pricing for logs has continued to escalate as a result of the general shortage related to logging restrictions in the Northwest, continued low log inventories in Japan and expected improvement in demand for lumber and plywood products in the domestic market."
 Leland also stated the company anticipates continued strong performance for the remainder of the year. Although lumber prices are expected to be down from second-quarter levels, pricing for the company's other products should remain strong as a result of the continuing raw material shortages and modest improvements in demand related to an upturn in the economy.
 Plum Creek is the second-largest private timberland owner in the Pacific Northwest and one of the largest in the nation. The company was formed in June of 1989 to acquire, own and operate substantially all of the timber business and wood products manufacturing operations formerly owned by Burlington Resources Inc. (NYSE: BR).
 Income statements for Plum Creek follow.
 PLUM CREEK TIMBER CO., L.P.
 COMBINED STATEMENT OF INCOME
 (Unaudited, in thousands, except per unit)
 Second Quarter: 1992 1991
 Revenues $108,644 $100,433
 Costs and expenses:
 Cost of goods sold 76,579 76,117
 Selling, general and administrative 8,526 8,916
 Total costs and expenses 85,105 85,033
 Operating income 23,539 15,400
 Interest expense (8,993) (9,039)
 Interest income 662 543
 Provision for loss on sale of assets -- (2,200)
 Other income (expense) - net (62) (45)
 Income before income taxes 15,146 4,659
 Provision for income taxes 522 175
 Net income 14,624 4,484
 General partner interest 831 628
 Net income allocable to unitholders $ 13,793 $ 3,856
 Net income per unit $ 0.92 $ 0.26
 PLUM CREEK TIMBER CO., L.P.
 COMBINED STATEMENT OF INCOME
 (Unaudited, in thousands, except per unit)
 Six Months: 1992 1991
 Revenues $207,856 $181,037
 Costs and expenses:
 Cost of goods sold 149,343 143,570
 Selling, general and administrative 17,187 16,812
 Total costs and expenses 166,530 160,382
 Operating income 41,326 20,655
 Interest expense (18,032) (18,078)
 Interest income 1,205 1,133
 Provision for loss on sale of assets -- (2,200)
 Other income (expense) - net (171) (110)
 Income before income taxes 24,328 1,400
 Provision for income taxes 593 175
 Net income 23,735 1,225
 General partner interest 1,551 1,102
 Net income allocable to unitholders $ 22,184 $ 123
 Net income per unit $ 1.50 $ 0.01
 -0- 8/4/92
 /CONTACT: Shelley Monfor of Plum Creek Timber, 206-467-3687/
 (PCL BR) CO: Plum Creek Timber Co. L.P. ST: Washington IN: PAP SU: ERN DIV


SC-LM -- SE003 -- 6667 08/04/92 12:40 EDT
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Date:Aug 4, 1992
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