POP Pope & Talbot

Pope & Talbot, Inc. (NYSE:POP) today confirmed it has received a pre-tax refund, including interest, of $127.5 million for duties deposited with U.S. Customs since May 2002 on its Canadian lumber sold in the United States. The payment resulted from the 2006 Softwood Lumber Agreement between the United States and Canada, which went into effect on October 12, 2006. The refund was paid by the Export Development Corporation (EDC), which purchased the Company�s rights associated with the refund of the duties. "We are pleased to have timely resolution of this element of the Softwood Lumber Agreement.� said Michael Flannery, Chairman and Chief Executive Officer. �The refund will serve to reduce our debt, improve our capital position and give us additional flexibility to meet our operating requirements.� The refund represents substantially all of the funds expected to be received by Pope & Talbot from the EDC. The refund is expected to have a positive effect upon the Company�s fourth quarter earnings. With the funds, the Company intends to pay $63.0 million to reduce its term borrowings during the coming week, consistent with the terms of its credit agreement. This payment will not be subject to prepayment premium. The balance of the refund is expected to be used for discretionary principal prepayments and to fund working capital liquidity demands. Pope & Talbot is a pulp and wood products company. The Company is based in Portland, Oregon and trades on the New York stock exchange under the symbol POP. Pope & Talbot was founded in 1849 and produces pulp and softwood lumber in the U.S. and Canada. Markets for the Company's products include: the U.S.; Europe; Canada; South America; Japan; and other Pacific Rim countries. For more information on Pope & Talbot, Inc., please check the website: www.poptal.com. Pope & Talbot, Inc. (NYSE:POP) today confirmed it has received a pre-tax refund, including interest, of $127.5 million for duties deposited with U.S. Customs since May 2002 on its Canadian lumber sold in the United States. The payment resulted from the 2006 Softwood Lumber Agreement between the United States and Canada, which went into effect on October 12, 2006. The refund was paid by the Export Development Corporation (EDC), which purchased the Company's rights associated with the refund of the duties. "We are pleased to have timely resolution of this element of the Softwood Lumber Agreement." said Michael Flannery, Chairman and Chief Executive Officer. "The refund will serve to reduce our debt, improve our capital position and give us additional flexibility to meet our operating requirements." The refund represents substantially all of the funds expected to be received by Pope & Talbot from the EDC. The refund is expected to have a positive effect upon the Company's fourth quarter earnings. With the funds, the Company intends to pay $63.0 million to reduce its term borrowings during the coming week, consistent with the terms of its credit agreement. This payment will not be subject to prepayment premium. The balance of the refund is expected to be used for discretionary principal prepayments and to fund working capital liquidity demands. Pope & Talbot is a pulp and wood products company. The Company is based in Portland, Oregon and trades on the New York stock exchange under the symbol POP. Pope & Talbot was founded in 1849 and produces pulp and softwood lumber in the U.S. and Canada. Markets for the Company's products include: the U.S.; Europe; Canada; South America; Japan; and other Pacific Rim countries. For more information on Pope & Talbot, Inc., please check the website: www.poptal.com.