Pope & Talbot Finalizes Sale of Sawmills and Related Timber Assets to Interfor

Previously announced sale includes Sawmills in Grand Forks and Castlegar, British Columbia and Spearfish, South Dakota

PORTLAND, Ore., May 1 /PRNewswire/ -- Pope & Talbot, Inc. announced today the completion of the previously announced sale of its sawmills in Grand Forks and Castlegar, British Columbia and related timber assets to International Forest Products Limited (Interfor) and the sale of its Spearfish, South Dakota sawmill and timber assets to Neiman Enterprises, Inc. as part of the transaction with Interfor.

"There is a measure of remorse in the fact that these sales signify the virtual end of a 160-year legacy in the lumber business for Pope & Talbot," said Harold Stanton, Pope & Talbot President and CEO. "We can take heart that these mills have been placed with good stewards and the employees as well as the communities that rely on these mills will continue to be supported."

Pope & Talbot also announced that PT Pindo Deli Pulp and Paper Mills and the assignees of its rights under the previously announced asset purchase agreement for the sale of the Company's three pulp mills, Columbia Pulp and Paper Inc. and Columbia Pulp and Paper Ltd., delivered a written notice of termination of the asset purchase agreement. Pope & Talbot disputes the basis for and the validity of the termination. In their termination letter, PT Pindo Deli Pulp and Paper Mills, Columbia Pulp and Paper Inc. and Columbia Pulp and Paper Ltd indicated a willingness to engage in discussions regarding mutually acceptable alternative transactions. "Pope & Talbot continues to be willing to seek avenues of understanding with the Columbia Pulp and Paper companies from which the parties can proceed to a sale of the mills," said Harold Stanton. The Company's pulp mills are located in Nanaimo and Mackenzie, British Columbia and Halsey, Oregon.

Pope & Talbot is a pulp and wood products business. The Company is based in Portland, Oregon and trades on the Pink Sheets under the symbol PTBT. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the US and Canada. Markets for the Company's products include the US, Europe, Canada, South America and the Pacific Rim. For more information, please check our website at www.poptal.com.

Caution Regarding Forward-Looking Statements

This press announcement and other Pope & Talbot communications may contain statements relating to future performance of Pope & Talbot that are forward- looking statements. These statements relate to Pope & Talbot's future plans, objectives, expectations and intentions and may be identified by words like "believe," "expect," "may," "will," "should," "seek," or "anticipate," and similar expressions. Pope & Talbot cautions readers that any such forward- looking statements are based on assumptions that it believes are reasonable, but are subject to a wide range of risks including, but not limited to, risks associated with being a debtor in possession in a chapter 11 proceeding and a debtor company under the Companies' Creditors Arrangement Act (Canada), including the satisfaction of conditions precedent to funding, fluctuation of the borrowing base and other limitations that may affect Pope & Talbot's continued ability to borrow under its debtor-in-possession credit facility to finance its operations, the occurrence of a termination event thereunder, court approval of the proposed sale, Pope and Talbot's relationship with and payment terms provided by its trade creditors, additional financing requirements, the results of renegotiating certain key commercial agreements, the effect of commodity and raw material prices, foreign currency fluctuations, the effect of U.S. housing market conditions and other uncertainties previously detailed in Pope & Talbot's filings with the SEC. Due to these uncertainties, there is an inherent risk that actual results will differ materially from any forward-looking statements. Pope & Talbot is under no obligation to (and expressly disclaims any such obligation to) update or alter any forward-looking statements whether as a result of new information, future events or otherwise.

Contact:
Mark Rossolo
503-274-4054

First Call Analyst:
FCMN Contact:

Source: Pope & Talbot, Inc.

CONTACT: Mark Rossolo of Pope & Talbot, Inc., +1-503-274-4054

Web site: http://www.poptal.com/

2008-05-01 20:49:25 0351147 PRNEWSWIRE