Earnings Summary

Operating Earnings before Special Items

Timberlands $ 143 $ 201 $ 174

Wood Products 183 464 320

Pulp & Paper (9) 14 80

Containerboard, Packaging & Recycling 82 62 94

Real Estate & Related Assets 97 118 155

Corporate and Other (80) ( 67) (45)

Total Operating Earnings before Special Items $ 416 $ 792 $ 778

Special Items (95) (16) 306

Total Operating Earnings $ 321 $ 776 $ 1084

Interest Expense, net (197) (217)* (184)

Income Taxes (42) (190) (306)

Net Income $ 82 $ 369 $ 594

Diluted EPS $ 0.37 $ 1.57 $ 2.45

Diluted EPS before Special Items $ 0.65 $ 1.67 $ 1.62

*Interest expense included $ 21 MM loss on early extinguishment of debt.