2008-09-10 03:56:01 -

www.potlatchcorp.com - Potlatch Corporation (NYSE: PCH) announced today that Linda K. Massman, 42, has accepted an offer to serve as vice president of finance and chief financial officer for Clearwater Paper Corporation, the proposed spin-off of Potlatch's pulp-based businesses.

On July 17, 2008, the Potlatch board of directors authorized management to pursue a tax-free spin-off

of the Company's pulp-based businesses. The proposed spin-off would create two stand-alone, publicly-traded entities: a timber REIT, which is a verified forest practices leader with 1.7 million acres of forestland, and a pulp-based manufacturing company that would include the Company's consumer products facilities in Lewiston, Idaho, Las Vegas, Nevada and Elwood, Illinois, its pulp and paperboard facilities in Lewiston, Idaho, and Cypress Bend, Arkansas, and a lumber mill in Lewiston, Idaho.

If the Potlatch board gives final approval to the proposed spin-off, Ms. Massman will have responsibility for financial reporting and controls, information technology, investor relations, tax and treasury functions and risk management for the pulp-based businesses, which had revenues of approximately $1.2 billion in 2007.

"Linda's extensive 20-year career in finance and strategic business planning will add valuable expertise to the management team of Clearwater Paper," said Gordon Jones, who will serve as Clearwater Paper President and CEO. "Her experience in the retail grocery business as well as her years as a business consultant for Accenture amounts to critical talent that will be invaluable to Clearwater Paper's success as the company refines its post-spin-off strategy."

Ms. Massman most recently was group vice president, finance and corporate planning, for SUPERVALU Inc., where she led a 160-person team developing financial plans, capital budgets, business plans and forecasts for the $44 billion supermarket chain.

Ms. Massman earned a Bachelor of Business Administration from the University of North Dakota and an MBA from Harvard Business School. Ms. Massman will be based at Clearwater Paper's Spokane headquarters.

ABOUT POTLATCH

Potlatch owns approximately 1.7 million acres of forestland in Arkansas, Idaho, Minnesota and Wisconsin, and operates 12 manufacturing facilities that produce lumber and panel products and bleached pulp products, including paperboard and tissue. The company, which employs 3,600 people, also conducts a land sales and development business. Potlatch, a verified forest practices leader, is committed to providing superior returns to stockholders through long-term stewardship of its resources.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding the spin-off of Potlatch's pulp-based businesses. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include those risks and uncertainties described from time to time in the company's public filings with the Securities and Exchange Commission. The company does not undertake to update any forward-looking statements.

Potlatch Corporation
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Matt Van Vleet, 509-254-1571
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Investors
Douglas D. Spedden, 509-835-1549