Rayonier

Jacksonville, Florida, USA, 23 July 2007 --(BUSINESS WIRE)-- Rayonier (NYSE:RYN) announced today that its board of directors has declared a third quarter cash dividend of 50 cents per common share, an increase of 3 cents per share, or 6.4%. The dividend is payable on 28 September 2007, to shareholders of record as of 07 September 2007.

"The increased dividend reflects the strength of our well-positioned core businesses and our confidence in their ability to consistently generate strong cash flow," said Lee M. Thomas, chairman, president, and CEO. "As a REIT, providing shareholders with an attractive dividend is one of our key objectives."

Rayonier's dividend is expected to be characterized as long-term capital gain and taxed at a maximum rate of 15% for most U.S. taxpayers.

Rayonier is a leading international forest products company with three core businesses: Timber, Real Estate and Performance Fibers. It owns, leases, or manages 2.7 million acres of timber and land in the United States, New Zealand, and Australia. The company's holdings include approximately 200,000 acres with residential and commercial development potential along the fast-growing Interstate 95 corridor between Savannah, Georgia, and Daytona Beach, Florida. Its Performance Fibers business is the world's leading producer of high-value specialty cellulose fibers. Approximately 40% of the company's sales are outside the United States to customers in more than 50 countries. Rayonier is structured as a Real Estate Investment Trust.

For further information, visit the company's Web site at www.rayonier.com. Complimentary copies of Rayonier press releases and other financial documents are available by calling 1-800-RYN-7611.