Potlatch Board Declares Distribution on Common Stock.

SPOKANE, Wash. -- The Board of Directors of Potlatch Corporation (NYSE: PCH) has declared a quarterly distribution on the Company's common stock. The distribution of $0.49 per share is payable December 28, 2006, to stockholders of record on December 12, 2006.

Potlatch is a REIT with 1.5

million acres of forestland in Arkansas, Idaho, Minnesota and Oregon, and through its taxable REIT subsidiary the company also operates 13 manufacturing facilities that produce lumber and panel products and bleach pulp products, including paperboard and tissue products. Potlatch, a verified forest practices leader, is committed to providing superior returns to stockholders through long-term, relationship-based stewardship of our resources.

This press release contains certain forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 as amended. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include those risks and uncertainties described from time to time in the company's public filings with the Securities and Exchange Commission. The company does not undertake to update any forward-looking statements.