Spokane, Washington, USA, 19 January 2009 -- (BUSINESS WIRE) -- Potlatch Corporation (NYSE:PCH) announced today the tax treatment for its dividend distributions made in 2008 on the company's common stock. The regular quarterly distributions of USD 0.51 per share paid in each quarter of 2008 are classified for income tax purposes as capital gain distributions taxable at the 15% rate.

Shareholders are encouraged to consult with their tax advisors regarding the tax treatment for their Potlatch distributions.

Potlatch is a real estate investment trust (REIT) with approximately 1.6 million acres of timberland in Arkansas, Idaho, Minnesota, and Wisconsin. Potlatch, a verified forest practices leader is committed to providing superior returns to stockholders through long-term stewardship of its forest resources. The company also conducts a land sales and development business and operates wood products manufacturing facilities through its taxable REIT subsidiary.