Plum Creek Eyes Share Repurchases

Seattle, Washington, USA, 07 June 2006 --(BUSINESS WIRE)-- Plum Creek (NYSE:PCL) announced that it expects to complete its previously announced USD 200 million open-market share repurchase program today and that its board of directors authorized an additional USD 200 million share repurchase program. The program authorizes the company, at its own discretion, to buy back shares of its outstanding common stock from time to time with open-market purchases as market conditions warrant.

Plum Creek repurchased 3.36 million shares, at an average price of USD 35.78 per share for the month of May and 0.90 million shares, at an average price of USD 36.08 per share for the month of June. The 4.26 million shares repurchased during the second quarter of 2006 reduced stock outstanding by approximately 2.3 percent.

"This action underscores our conviction about the long-term value of our assets and our strategy to create and capture shareholder value," said Rick Holley, president and chief executive officer. "Through this program, we have acquired valuable timber and land assets at attractive values in the stock market, increasing our shareholders' proportionate ownership interest in these assets. We will continue our disciplined approach to capital allocation, taking into consideration all options for long-term value creation, including discretionary capital investment, dividends, acquisitions, and opportunistic share repurchase."

Plum Creek is the largest and most geographically diverse private landowner in the nation, with more than 8 million acres of timberlands in major timber producing regions of the United States and 10 wood products manufacturing facilities in the Northwest.