RYN Rayonier Inc

Rayonier (NYSE:RYN) announced today tax reporting information for its 2005 cash dividends. The company said it paid dividends totaling $1.71 per share of common stock during 2005, adjusted for the 3 for 2 stock split paid on October 17, 2005. These dividends are classified as follows for tax purposes: $1.353807 (79.17%) per share is Capital Gain Distribution and $0.356193 (20.83%) per share is Return of Capital (Non-Taxable Distribution). Shareholders are encouraged to consult with their tax advisers as to their specific tax treatment of Rayonier dividends. All numbers in the following table are post-split and the fourth quarter dividend reflects a 13.7 percent increase. The Capital Gain Distribution and Return of Capital percentages noted above apply to quarterly dividends as well as the total annual dividend, on both a pre and post-split basis. -0- *T Cash Non-taxable Distribution Distributions Record Date Payable Date Per Share Capital Gain (Return of Capital) 3/11/2005 3/31/2005 $0.4133 $0.327236 $0.086097 6/10/2005 6/30/2005 $0.4133 $0.327236 $0.086097 9/9/2005 9/30/2005 $0.4133 $0.327236 $0.086097 12/9/2005 12/31/2005 $0.47 $0.372099 $0.097901 Totals: $1.71 $1.353807 $0.356193 *T Taxability of the company's 2005 common stock dividends should not be presumed to be indicative or predictive of the taxability of future company dividends. Rayonier has more than two million acres of prime timberland and real estate in the U.S. and New Zealand. Its real estate subsidiary, TerraPointe LLC, is charged with maximizing the value of its extensive higher and better use properties, particularly along the fast-growing Interstate 95 corridor between Savannah, Georgia, and Daytona Beach, Florida, where Rayonier owns approximately 200,000 acres. Rayonier is also the world's leading producer of high performance cellulose specialty products. Approximately 40 percent of the company's sales are outside the U.S. to customers in more than 50 countries. For further information, visit the company's web site at http://www.rayonier.com.