Spokane, Washington, USA, 16 December 2008 -- (BUSINESS WIRE) -- Potlatch Corporation (NYSE:PCH) announced today that it has completed the previously announced tax-free spin-off of its pulp-based businesses into a publicly traded company called Clearwater Paper Corporation. The spin-off was implemented through a distribution of 100% of the common stock of Clearwater Paper to Potlatch shareholders.

Michael J. Covey, chairman, president and CEO of Potlatch, said, "As a result of the spin-off, Potlatch will now be able to devote its attention and resources to leveraging the competitive strengths of the company as an essentially pure-play timber REIT that is well-positioned to unlock significant value for shareholders."

Potlatch is a real estate investment trust (REIT) with approximately 1.6 million acres of forestland in Arkansas, Idaho, Minnesota, and Wisconsin. Potlatch, a verified forest practices leader, is committed to providing superior returns to stockholders through long-term stewardship of its forest resources. The company also conducts a land sales and development business and operates wood products manufacturing facilities through its taxable REIT subsidiary.