Pope & Talbot, Inc. Receives Financing Commitment From Lenders

Maria Pope Named CFO as Richard Atkinson Steps Down 


PORTLAND, Ore., June 2  /PRNewswire-FirstCall/ -- Pope & Talbot, Inc. (NYSE:POP) and its wholly-owned Canadian subsidiary, Pope & Talbot Ltd. ("Limited"), today reported that they have signed a commitment letter for a new credit facility.  The Company said that it intends to use proceeds to refinance its Halsey pulp mill leases, its existing Canadian and U.S. revolving credit facilities and its receivable sales arrangement.

Under the terms of the commitment letter signed on May 30, 2006, Ableco Finance LLC and Wells Fargo Financial Corporation Canada committed to provide $325 million for a senior secured credit facility, subject to the satisfaction of the conditions in the commitment letter and draft Credit Agreement.  The new credit facility will consist of two term loans totaling $250 million, and a $75 million revolving credit facility, of which $40 million will be available for cash borrowings and $35 million for letters of credit.  The new credit facility will be secured by substantially all of the Company's assets, and will have a term of approximately six years.  The Company expects the new Credit Agreement to be signed and effective by the end of June 2006; however, there can be no assurance that all closing conditions will be satisfied and the transaction completed.

Lehman Brothers Inc. arranged and advised the Company on the transaction. Additional information regarding the commitment letter and the proposed new credit facility will be contained in a Form 8-K to be filed by the Company with the SEC today.

In an unrelated announcement, Pope & Talbot, Inc. said that Chief Financial Officer Richard K. Atkinson has resigned, effective June 16, 2006, to accept the position of Senior Vice President and Chief Financial Officer of a privately held bio-energy company.

"Rich has helped Pope & Talbot during some challenging times," said Michael Flannery, chairman and chief executive officer.  "We appreciate his hard work and dedication and wish him well in his new endeavor."

Maria M. Pope will resume the duties of Chief Financial Officer and Secretary effective June 16, 2006.  Ms. Pope, 41, will continue to serve in her current role as Vice President and General Manager, Wood Products Division, a position she has held since December 2003.  Previously, she served as Vice President, Chief Financial Officer and Secretary from 1999 to 2003, and held various financial positions since joining the Company in 1995.  Ms. Pope previously worked for Levi Strauss & Co. and Morgan Stanley & Co., Inc.

Pope & Talbot is dedicated to the pulp and wood products businesses.  The Company is based in Portland, Oregon and traded on the New York Stock Exchange under the symbol POP.  Pope & Talbot was founded in 1849 and produces pulp and softwood lumber in the U.S. and Canada.  Markets for the Company's products include the U.S.; Europe; Canada; South America; Japan; and other Pacific Rim countries.  For more information on Pope & Talbot, please check the website http://www.poptal.com/. 

DATASOURCE: Pope & Talbot, Inc.



CONTACT:  Richard K. Atkinson of Pope & Talbot, Inc., [phone]



Web site:  http://www.poptal.com/ 

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