RYN Rayonier Inc

Rayonier (NYSE:RYN) said today it closed June 30, 2006, on the previously announced agreement to reduce its investment in a New Zealand timber consortium from 49.7 percent to 40 percent. The transaction provides net cash proceeds to the company of approximately US$22 million and an after-tax gain of $6 million, or 8 cents per share, including $5 million of previously deferred gain. Rayonier will continue to manage the 354,000 acre forest estate, the third largest in New Zealand. On April 27, 2006, Rayonier announced that the consortium, which includes RREEF Infrastructure, the global investing arm of Deutsche Asset Management, had agreed to sell a 35 percent interest, including 9.7 percent from Rayonier, to funds managed by AMP Capital Investors Limited, a subsidiary of AMP Limited, an Australian Corporation. About Rayonier Rayonier is a leading international forest products company with three core businesses: Timber, Real Estate and Performance Fibers. It owns, leases or manages 2.5 million acres of timber and land in the U.S., New Zealand and Australia. Rayonier's ownership includes approximately 200,000 acres with residential and commercial development potential along the fast-growing Interstate 95 corridor between Savannah, Georgia, and Daytona Beach, Florida. TerraPointe is the company's Florida-based real estate development subsidiary. 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. Statements regarding the sale of a portion of Rayonier's interest in the New Zealand timberland consortium, and the expected effect of such sale on the company's results and earnings, are "forward-looking statements" made pursuant to the safe harbor provisions of The Private Securities Litigation Reform Act of 1995 and other federal securities laws. For additional factors that could impact future results, please see the company's most recent Form 10-K on file with the Securities and Exchange Commission. Rayonier assumes no obligation to update these statements except as may be required by law.