Weyerhaeuser Completes Sale of Five Mills

Federal Way, WA, July 31, 2006–Weyerhaeuser Co., said it completed the sale of its North American composite panels business to Flakeboard America Ltd., the U.S. subsidiary of Markham, Ontario-based Flakeboard Co. Ltd.

Terms of the deal, which was announced in June, were not released.

As part of the transaction, Flakeboard gains Weyerhaeuser mills in Albany, Ore.; Bennettsville, S.C.; Eugene, Ore.; Malvern, Ark. and Simsboro, La. The mills can produce a total of 1.1 billion square feet of particle board annually.

Weyerhaeuser is currently in the middle of a restructuring. Last week, it reported that second-quarter earnings fell 25 percent on a slowdown in the U.S. housing market. The company also said it is in talks to sell its fine paper business.