Pope & Talbot Completes Refinancing

Portland, Oregon, USA, 28 June 2006 -- (BUSINESS WIRE) -- Pope & Talbot, Inc. (NYSE:POP) today announced that it entered into a credit agreement with Ableco Finance LLC and Wells Fargo Financial Corporation Canada, relating to a $325 million senior secured credit facility. The new credit facility consists of two term loans for $250 million and a $75 million revolving credit facility all due 2012.

"We are very pleased to have concluded the financing with Ableco and Wells Fargo Financial Corporation Canada," stated Michael Flannery, chairman and chief executive officer. "The six-year term and excess availability provide the company with needed financial and operational flexibility."

Substantially all of the proceeds from the $250 million term loans were used to repay outstanding borrowings under the company's existing Canadian and U.S. revolving credit facilities, the Halsey pulp mill lease financings, and the company's receivable sales arrangement. The $75 million revolving credit portion consists of $40 million of excess liquidity and $35 million for letters of credit.

The entire $325 million credit facility is secured by substantially all of the assets of the company and its subsidiaries.

Pope & Talbot is a pulp and wood products company. The company is based in Portland, Oregon and trades on the New York Stock Exchange under the symbol POP. Pope & Talbot was founded in 1849 and produces pulp and softwood lumber in the United States and Canada. Markets for the company's products include the United States, Europe, Canada, South America, Japan, and other Pacific Rim countries. For more information on Pope & Talbot, Inc., check www.poptal.com.

Headquartered in Mississauga, Ontario, Wells Fargo Financial Corporation Canada is a leading national provider of financial products and services, including mortgage financing and personal loans to Canadian consumers. Wells Fargo Financial offers retail financing programs to national and local retailers through a network of more than 3400 merchants. With 165 stores in all 10 provinces and 2700 team members across Canada, Wells Fargo Financial Corporation Canada, a CAD 4.50 billion corporation, is part of Wells Fargo & Company (NYSE:WFC). More information about Wells Fargo Financial Corporation Canada is available at www.wellsfargofinancial.ca.