<B>Boise Reports Dip in Quarterly Figures</B>

Boise Cascade reported 2000 net income of $121.3 million compared with $148.2 million before non-routine items, in 1999. Including non-routine items, the company recorded net income of $178.6 million, compared with $199.8 million in 1999.

Sales in 2000 were $7.8 billion, compared with $7.1 billion in 1999. The 9% increase in sales was due primarily to higher average paper prices and sales volume growth in building materials and office products distribution.

George Harad, Boise Cascade's chairman and CEO, said, ``Weak market conditions in our building products segment, and increased product costs and lower gross margins in our office products segment, together with rising energy costs, all combined to produce lower results in 2000.''

Excluding non-routine items, net income in the fourth quarter was $20.7 million, compared with $45.9 million in fourth quarter 1999 and $27.4 million in third quarter 2000. Non-routine items in fourth quarter included an adjustment to our corporate tax rate and a $2.2 million pretax charge in our office products segment related to implementing a strategic realignment. Including non-routine items, the company recorded fourth quarter 2000 net income of $23.4 million, or 34 cents per diluted share.

Fourth quarter sales were $1.9 billion, flat with fourth quarter 1999 sales. Third quarter 2000 sales were $2.0 billion.

Fourth quarter operating income was $36.2 million, before non-routine items, compared with $44.2 million in fourth quarter 1999 and $38.5 million, before non-routine items, in third quarter 2000. Operating income declined against comparative periods due primarily to increased product costs and competitive pressures.

Sales for the quarter increased only 1% to $921 million, compared with $908 million in fourth quarter 1999. Increased sales from internal growth and acquisitions were substantially offset by reduced sales due to divestitures. Sales for locations operating in both periods grew 8%.

Fourth quarter 2000 operating income was $2.0 million, compared with $28.1 million in fourth quarter 1999, before non-routine items, and $6.7 million in third quarter 2000. The decline in operating income from the earlier periods was due primarily to falling wood products prices.

Fourth quarter 2000 operating income was $40.1 million, compared with $58.8 million in fourth quarter 1999, before non-routine items, and $53.7 million in third quarter 2000. Weighted average prices for the 655,000 tons of paper Boise Cascade sold during the quarter increased $34 per ton, or 6%, from fourth quarter 1999 levels but were flat compared with prices in third quarter 2000. Energy costs were higher in the quarter than in both comparison quarters.

``Given the sharp economic slowdown we are currently experiencing, Boise Cascade's results in first quarter 2001 should be similar to the results we posted in fourth quarter 2000,'' Harad said. ``However, if the economy simply slows but does not decline, our businesses should improve as the year progresses.

``Our paper segment, for example, should have another year of improvement,'' Harad continued, ``although results may be tempered by higher energy costs. In uncoated free sheet, our largest grade, little or no new global capacity is planned over the next three years. Industry consolidation and curtailments may reduce capacity further, and still other capacity, notably in Europe, is being converted to coated paper. These factors, combined with the positive effects of the recently strengthening euro, suggest a tighter supply/demand balance in North American uncoated free sheet markets over the next few years. That should benefit Boise Cascade.

``We expect our office products segment to continue its pattern of growing sales at or near double-digit rates,'' Harad continued. ``Additional sales growth will come from our initiatives to address new market segments, to sell more products to existing customers, and to expand into new geographic areas. And we will continue to consider acquisitions that fit our strategic and financial criteria.

``In building products, we believe market conditions early in 2001 will be similar to what we experienced in the second half of 2000, followed by some recovery as the building season gets underway. We expect our engineered wood products and building materials distribution businesses to continue to grow and make steadily greater contributions.''