Rayonier to Sell Wood Products Business to Interfor

  Rayonier to Sell Wood Products Business to Interfor

Business Wire

JACKSONVILLE, Fla. -- January 22, 2013

Rayonier (NYSE:RYN) announced today that it has reached agreement to sell all
of the assets of its Wood Products business to International Forest Products
Limited (Interfor) for $80 million. The sale, expected to close in the first
quarter, will result in an after-tax gain of approximately $40 million.

Rayonier's Wood Products business, headquartered in Baxley, Ga., consists of
three lumber mills located in Baxley, Swainsboro and Eatonton, Ga. As part of
the transaction, Interfor has agreed to hire all 260 current Wood Products
employees. The three mills contributed approximately $10 million in operating
income to Rayonier in 2012.

“This sale represents another key move in our strategy to fully position our
manufacturing operations in the specialty chemicals sector,” said Paul
Boynton, Rayonier chairman, president and CEO. “At the same time, the
conversion of our commodity fluff pulp business to cellulose specialties
remains on track for mid-2013 startup.

“We are delighted with this opportunity to transition our Wood Products
operations to a world-class company focused on lumber and wood products
manufacturing,” continued Boynton. “Rayonier has enjoyed a long association
with Interfor, supplying their lumber business in the Pacific Northwest for
many years, and we look forward to expanding that relationship into the
Southeast.”

Interfor, based in Vancouver, B.C., Canada, is a leading producer of lumber
and wood products, primarily in the Northwest U.S. and Canada. This will be
its first acquisition of manufacturing assets in the Southeast U.S.

About Rayonier

Rayonier is a leading international forest products company with three core
businesses: Forest Resources, Real Estate and Performance Fibers. The company
owns, leases or manages 2.7 million acres of timber and land in the United
States and New Zealand. The company's holdings include approximately 200,000
acres with residential and commercial development potential along the
Interstate 95 corridor between Savannah, Ga., and Daytona Beach, Fla. Its
Performance Fibers business is one of the world's leading producers of
high-value specialty cellulose fibers, which are used in products such as
filters, pharmaceuticals and LCD screens. Approximately 45 percent of the
company's sales are outside the U.S. to customers in approximately 40
countries. Rayonier is structured as a real estate investment trust. More
information is available atwww.rayonier.com.

Contact:

Rayonier
Investors:
Ed Kiker, 904-357-9186
or
Media Relations:
Ed Frazier, 904-357-9149
 
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