Pope & Talbot Receives $127.5 Million of Its Softwood Duties

  
    
  
  
    
      Pope & Talbot, Inc. (NYSE:POP) today confirmed it has received a pre-tax 
      refund, including interest, of $127.5 million for duties deposited with 
      U.S. Customs since May 2002 on its Canadian lumber sold in the United 
      States.
    
    
      The payment resulted from the 2006 Softwood Lumber Agreement between the 
      United States and Canada, which went into effect on October 12, 2006. 
      The refund was paid by the Export Development Corporation (EDC), which 
      purchased the Company’s rights associated with 
      the refund of the duties.
    
    
      "We are pleased to have timely resolution of this element of the 
      Softwood Lumber Agreement.” said Michael 
      Flannery, Chairman and Chief Executive Officer. “The 
      refund will serve to reduce our debt, improve our capital position and 
      give us additional flexibility to meet our operating requirements.”
    
    
      The refund represents substantially all of the funds expected to be 
      received by Pope & Talbot from the EDC. The refund is expected to have a 
      positive effect upon the Company’s fourth 
      quarter earnings.
    
    
      With the funds, the Company intends to pay $63.0 million to reduce its 
      term borrowings during the coming week, consistent with the terms of its 
      credit agreement. This payment will not be subject to prepayment 
      premium. The balance of the refund is expected to be used for 
      discretionary principal prepayments and to fund working capital 
      liquidity demands.
    
    
      Pope & Talbot is a pulp and wood products company. The Company is based 
      in Portland, Oregon and trades 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, 
      Inc., please check the website: www.poptal.com.
    
  
Pope & Talbot, Inc. (NYSE:POP) today confirmed it has received a
pre-tax refund, including interest, of $127.5 million for duties
deposited with U.S. Customs since May 2002 on its Canadian lumber sold
in the United States.

   The payment resulted from the 2006 Softwood Lumber Agreement
between the United States and Canada, which went into effect on
October 12, 2006. The refund was paid by the Export Development
Corporation (EDC), which purchased the Company's rights associated
with the refund of the duties.

   "We are pleased to have timely resolution of this element of the
Softwood Lumber Agreement." said Michael Flannery, Chairman and Chief
Executive Officer. "The refund will serve to reduce our debt, improve
our capital position and give us additional flexibility to meet our
operating requirements."

   The refund represents substantially all of the funds expected to
be received by Pope & Talbot from the EDC. The refund is expected to
have a positive effect upon the Company's fourth quarter earnings.

   With the funds, the Company intends to pay $63.0 million to reduce
its term borrowings during the coming week, consistent with the terms
of its credit agreement. This payment will not be subject to
prepayment premium. The balance of the refund is expected to be used
for discretionary principal prepayments and to fund working capital
liquidity demands.

   Pope & Talbot is a pulp and wood products company. The Company is
based in Portland, Oregon and trades 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, Inc., please check the website: www.poptal.com.