Longview, Washington, USA, 18 April 2006 – Longview Fibre Company (NYSE: LFB) issued the following statement in response to today's announcement from Obsidian Finance Group, LLC and The Campbell Group, LLC that they intend to solicit requests to call a special shareholder meeting to "discuss" their proposal for acquiring the company.
"We believe Obsidian/Campbell's latest announcement once again underscores the weakness of their proposal. We are convinced that they have chosen this route to compensate for the proposal's highly conditional nature, which includes extensive due diligence as well as financing contingencies and associated risks," said Richard H. Wollenberg, Longview Fibre's president, chief executive officer, and chairman of the board.
"We are confident in our ability to unlock the intrinsic value of Longview Fibre. We intend to complete Longview Fibre's REIT conversion and implement an improved operating plan to further enhance shareholder value," Wollenberg continued. "We believe the Obsidian/Campbell proposal is an opportunistic attempt to acquire the company before shareholders can reap the benefits and value of our REIT conversion and improved operating plan, which are not reflected in our current or historical stock price. As we announced yesterday, after careful consideration, the board unanimously rejected the Obsidian/Campbell proposal and determined that completing the REIT conversion and implementing the improved operating plan is in the best interests of the company and our shareholders."
Certain Information Regarding Participants
Longview Fibre Company's directors and certain of its executive officers, as well as Longview Fibre Company, may be deemed to be participants in any solicitation of Longview Fibre Company's shareholders in opposition to any solicitation conducted by Obsidian Finance Group, LLC and/or The Campbell Group, LLC or any of their affiliates. Shareholders may obtain information regarding the names, affiliations and interests of such individuals in Longview Fibre Company's proxy statement for the company's 2006 annual meeting of shareholders, filed with the SEC on 27 February 2006, on Schedule 14A. A copy of that proxy statement may be obtained free of charge on the Securities and Exchange Commission's Web site at http://www.sec.gov, through the link to Longview Fibre Company's SEC filings on the company's Web site at http://www.longfibre.com or by directing a request to L.J. McLaughlin, 300 Fibre Way, Longview, Washington 98632, (360) 425-1550.
In connection with any solicitation of Longview Fibre Company's shareholders by Obsidian Finance Group, LLC and/or The Campbell Group, LLC or any of their affiliates, Longview Fibre Company may file a proxy statement and/or other soliciting materials and other relevant documents with the SEC. Shareholders should read any such proxy statement, other soliciting materials or other relevant documents when and if they become available, because they will contain important information. Shareholders may obtain copies of such documents (when and if they become available) free of charge on the SEC's Web site at http://www.sec.gov, through the link to Longview Fibre Company's SEC filings on the company's Web site at http://www.longfibre.com or by directing a request to L.J. McLaughlin, 300 Fibre Way, Longview, Washington 98632, (360) 425-1550.
About Longview Fibre Company
Longview Fibre Company is a diversified timberlands owner and manager, and a specialty paper and container manufacturer. Using sustainable forestry methods, the company manages approximately 587,000 acres of softwood timberlands predominantly located in western Washington and Oregon, primarily for the sale of logs to the U.S. and Japanese markets. Longview Fibre's manufacturing facilities include a pulp-paper mill at Longview, Washington; a network of converting plants; and a sawmill in central Washington. The company's products include logs; corrugated and solid-fiber containers; commodity and specialty kraft paper; paperboard; and dimension and specialty lumber. Longview Fibre press releases, SEC filings, and annual reports are available at no charge through the company's Web site at www.longviewfibre.com.