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Pope & Talbot Announces Agreement to Sell Three Pulp Mills to Sinar Mas Group
Portland, Oregon, USA, 10 January 2008 -- /PRNewswire/ -- Pope & Talbot, Inc. today announced that it has agreed to sell three pulp mills to one or more affiliates within the Sinar Mas Group. The value of the transaction to Pope & Talbot is approximately USD 225 million, including the assumption of certain liabilities and USD 100 million of working capital proceeds that is not subject to the sale, to be realized after closing.

The three pulp mills, located in Nanaimo and Mackenzie, British Columbia, Canada, and Halsey, Oregon, produce high-quality softwood pulp. "We are delighted with this development, as this is an important milestone in maximizing value for our stakeholders," said Harold Stanton, Pope & Talbot president and CEO. "The past six months have been very trying on our folks and it is exciting that they will have the opportunity to join a world class pulp and paper producer like Sinar Mas Group."

The sale is subject to approval by the U.S. Bankruptcy Court and the Canadian Court. It will be effected under procedures that provide for opportunity for other parties to submit competing proposals subject to court-approved bidding procedures and protections for the purchaser(s). The transaction is also subject to customary regulatory approvals in Canada and the United States. Pope & Talbot expects to receive such approvals and close the transaction in the first quarter of 2008.

Pope & Talbot is a pulp and wood products business. The company is based in Portland, Oregon, and trades on the Pink Sheets under the symbol PTBT. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the United States and Canada. Markets for the company's products include the United States, Europe, Canada, South America, and the Pacific Rim. For more information, visit http://www.poptal.com.

Sinar Mas Group is a global enterprise with significant interests in pulp and paper in Indonesia, China, and elsewhere. Sinar Mas is the largest producer of pulp and paper in Asia and is one of the top five in the world. A spokesperson for Sinar Mas Group stated that "Sinar Mas is pleased to have entered into this agreement since it represents an important step in our global strategy for pulp and paper. We look forward to working closely with management, labor unions, and employees to ensure that the pulp business of Pope & Talbot is stabilized, strengthened, and enhanced through the obvious synergies and growth potential presented by our existing pulp and paper business."

SOURCE Pope & Talbot, Inc.

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