Jacksonville, Florida, USA, 05 July 2006 -- (BUSINESS WIRE)-- Rayonier (NYSE:RYN) said today it closed 30 June 2006, on the previously announced agreement to reduce its investment in a New Zealand timber consortium from 49.7% to 40%. The transaction provides net cash proceeds to the company of approximately USD 22 million and an after-tax gain of USD 6 million, or 8 cents per share, including USD 5 million of previously deferred gain. Rayonier will continue to manage the 354,000 acre forest estate, the third largest in New Zealand.

On 27 April 2006, Rayonier announced that the consortium, which includes RREEF Infrastructure, the global investing arm of Deutsche Asset Management, had agreed to sell a 35% interest, including 9.7% 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 United States, 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% of the company's sales are outside the United State to customers in more than 50 countries.