Potlatch (PCH)

Potlatch Corporation Announces Proposed Offering of Senior Notes

SPOKANE, Wash—October 26, 2009—Potlatch Corporation (NYSE:PCH) (the “Company”) today announced a proposed offering of $150 million principal amount of senior notes due 2019 (the “Notes”).

A portion of the net proceeds of the offering will be used to repay approximately $73.0 million outstanding under the Company’s senior secured credit facility and the remaining net proceeds will be used for general corporate purposes.

As the offering is a private placement, the notes will be offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933 (the “Securities Act”) and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The notes to be offered have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the notes nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This press release contains information about pending transactions, and there can be no assurance that these transactions will be completed.