POTLATCH CORPORATION MAY 16, 2007

A Verified Forest Practices Leader

POTLATCH CORPORATION

MAY 16, 2007

Potlatch Landholdings and Facilities

• 1.5 million acres

• 13 manufacturing facilities

POTLATCH CORPORATION

MAY 16, 2007

A: Forest Stewardship Council (FSC) CertificationMeans “Green Packaging”

Potlatch is a 104-year-old company that restructured as a real estate investment trust, or REIT, in January of 2006.

Potlatch certified its forest landholdings in 2004–2005 through the Forest Stewardship Council (FSC).

Our strategy:

• Long-term ownership

• Stewardship

• Third-party certification

We are positioned to grow.

Efficient Business Model Intersecting with SuperiorForest Certification Standard

POTLATCH CORPORATION

MAY 16, 2007

Potlatch is the first name in sustainable forestry andpremium quality forest products.

• As we increase our ownership base, we will increase the amount of forest certified under FSC.

• 76,000 acres purchased in Wisconsin in January 2007.

• FSC audits are scheduled for later this year.

Forestland Acquisition

POTLATCH CORPORATION

MAY 16, 2007

Finished Product Sales—Lumber and Plywood

FSC Labeled

Year Sales $

2004 $ 409,297

2005 $ 825,410

2006 $2,787,651

2007 (1st quarter) $2,059,441

• Price premiums on each transaction.

• New customers.

• Now selling to total of 36 customers, concentrated in California and resort markets.

POTLATCH CORPORATION

MAY 16, 2007

Finished Product Sales—Paperboard

• Bleached paperboard is used in cosmetic and pharmaceutical packaging, software and DVDs, liquid packaging and commercial printing.

• First FSC product labeling, 4thquarter 2006.

• Very high end commercial printing product. Marketing strategy built around FSC label.

• Strong market receptivity

• 1st quarter 2007—2% of total sales.

POTLATCH CORPORATION

MAY 16, 2007

More to Come

We will bring our high-end packaging product with FSC label to marketthis summer.

POTLATCH CORPORATION

MAY 16, 2007

Brand Consistent

• FSC certification supports our brand and associated messaging.

• We are a verified forest practices leader.

“Potlatch is a leader in their industry…. they understand the value of long-term stewardship….they meet the stringent requirements of FSC certification.”

—Liza Murphy, The Rainforest Alliance