FOREST OIL PRICES PUBLIC OFFERING OF STOCK; ANSCHUTZ REDUCES OWNERSHIP

Forest Oil Corp. (NYSE: FST) priced a public offering of 7.85 million shares of its common stock at $24.50 per share. All shares are being sold by Forest. The Denver independent expects the issuance and delivery of the shares to occur on Jan. 22, 2003. Forest also has granted to the underwriters

a 30-day option to purchase up to 1.1775 million additional shares of its common stock solely to cover overallotments, if any. Net proceeds will be $184.1 million before any exercise of the overallotment option. Forest intends to use the proceeds to immediately repurchase 7.85 million shares from The Anschutz Corp. and certain of its affiliates. The shares will be repurchased by Forest for $23.52 per share and will be cancelled immediately and will no longer be outstanding. Upon completion of the offering and repurchase, The Anschutz Corp. and its affiliates will beneficially own about 16.6 percent of Forest's outstanding common stock, down from 33.5 percent currently. Philip F. Anschutz, chairman of The Anschutz Corp., and Stephen A. Kaplan, a principal of Oaktree Capital Management LLC, have resigned as directors of Forest. The offering is being led by Credit Suisse First Boston Corp. and J.P. Morgan Securities Inc. as joint book- running managers. Comanagers are Salomon Smith Barney Inc., Petrie Parkman & Co., Banc of America Securities LLC and Raymond James & Associates Inc.

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