<b>Willamette Sees Earnings Drop</b>

Willamette Industries reported net earnings for the first quarter of $66.6 million, versus net earnings of $85.3 million for the same time last year. Sales for the quarter were $1.13 billion, compared to $1.17 billion the same time last year.

Duane McDougall, president and CEO, said, ``Willamette produced solid earnings for the quarter despite weakened conditions in the general economy and higher energy costs across all lines of business. Our strong performance relative to our peers, many of which already pre-announced first quarter losses, is the result of our low cost, integrated business strategy, balanced business mix, and the exceptional dedication and efforts of our employees.

``Earnings were driven by continued strength in our brown paper segment, which continues to perform well despite light seasonal volumes and high energy costs,'' McDougall continued. ``White paper earnings were down slightly from the fourth quarter due to significant deterioration in pricing for hardwood market pulp. Our building materials business remains profitable and our plants continue to run efficiently, despite very difficult market conditions across all grades.''