Pope Resources Closes $7.63 Million Sale to Costco

Pope Resources (Nasdaq:POPEZ) announced it has closed on
a $7.63 million sale of 17 acres to Costco Wholesale Corporation. This
property sold by Pope Resources represents a portion of the proposed
35-acre retail component of the company's 327-acre Harbor Hill master
planned community located within the city limits of Gig Harbor,
Washington.
   "Costco has ranked among the most desired stores by Gig Harbor
area residents in a number of past polls," said Jon Rose, President of
Pope Resources' real estate subsidiary, Olympic Property Group. "We
are pleased to bring such a quality retailer to our project and our
community."

   About Pope Resources

   Pope Resources, a publicly traded limited partnership and its
subsidiaries Olympic Resource Management and Olympic Property Group
own or manage over 400,000 acres of timberland and development
property in Washington and Oregon. In addition, we provide forestry
consulting and timberland management services to third-party owners
and managers of timberland in Washington, Oregon and California. The
company and its predecessor companies have owned and managed
timberlands and development properties for more than 150 years.
Additional information on the company can be found at www.orm.com. The
contents of our website are not incorporated into this release or into
our filings with the Securities Exchange Commission.