The Pacific Lumber Company Issues Statement on Chapter 11 Venue Ruling

Scotia, California, USA, 20 April 2007 -- /PRNewswire/ -- George A. O'Brien, president and CEO of The Pacific Lumber Company, released the following statement regarding the venue ruling issued today by United States Bankruptcy Judge Richard S. Schmidt in Corpus Christi, Texas:

"The Pacific Lumber Company is pleased with the Court's decision to retain venue for the Company and its subsidiaries' voluntary Chapter 11 bankruptcy cases in the Federal Bankruptcy Court for the Southern District of Texas," O'Brien said.

"We agree with the Court's statement that 'While many of the parties allege that venue is improper, the unrefuted facts presented at the hearing demonstrate that venue is proper in the Southern District of Texas.'"

"We believed from the beginning of this case that venue is appropriate in Corpus Christi, as the Court's ruling confirms," O'Brien said.

"This ruling is obviously important to the Companies and our employees. Getting this key matter behind us will now allow the Companies to work with their creditors, lenders, and other necessary parties to focus on reorganizing our Companies so that we can emerge quickly from bankruptcy as a strong, ongoing business," O'Brien added.

The filing companies are The Pacific Lumber Company, Scotia Pacific Company LLC (Scopac), Britt Lumber Co., Inc., Scotia Development LLC, Salmon Creek LLC and Scotia Inn Inc.

Source: The Pacific Lumber Company