Weyerhaeuser Reports Second Quarter Results

Weyerhaeuser Company (NYSE: WY) today reported net earnings of $14
million for the second quarter, or 7 cents per diluted share, on net
sales of $1.8 billion.

This compares with a net loss of $106 million, or 50 cents per share, on
net sales from continuing operations of $1.4 billion for the same period
last year.

Excluding these items, the company reported net earnings of $42 million,
or 20 cents per diluted share, in the second quarter of 2010.

Excluding these items, the company′s net loss was $125 million, or 59
cents per share, in the second quarter of 2009.

'In the second quarter we returned to profitability and all businesses
were cash positive from operations,? said Dan Fulton, president and
chief executive officer. 'I′m encouraged by our ability to profitably
manage operations in an uncertain climate and with the lack of a
sustained housing recovery. On July 11, we announced the final major
milestone in our plan to become a REIT by declaring our special
dividend. We look forward to the benefits that the REIT structure will
bring to our shareholders.?

2Q 2010 Performance ? The segment′s earnings declined in the
second quarter compared to the first, as lower earnings from disposition
of non-strategic timberlands were partially offset by increased earnings
from operations.

Second quarter included pre-tax gains of $14 million from disposition of
non-strategic timberlands, compared to $31 million in the first quarter.
Earnings from operations increased due to improved log price
realizations, primarily in the west. This increase was partially offset
by additional silviculture spending and seasonally higher road expenses
for US operations. Losses related to international operations were $4
million in the second quarter, unchanged from first quarter levels.
Weyerhaeuser continues to defer timber harvest.

3Q 2010 Outlook ? Excluding the disposition of non-strategic
timberlands, Weyerhaeuser expects third quarter operating earnings from
the segment to be lower than second quarter. The company expects lower
log prices and seasonally higher silviculture costs.

2Q 2010 Performance ? Excluding the pre-tax items noted below,
the segment′s results improved by $52  million, resulting in a
significantly smaller loss in the second quarter.

• 
  Second quarter included pre-tax gains of $8 million from the sale of
  assets.
  
• 
  First quarter included pre-tax gains of $40 million from the sale of
  certain British Columbia forest licenses and associated rights, and $4
  million from the sale of a sawmill.
  

Although second quarter market conditions were extremely volatile,
quarterly average sales realizations improved across nearly all product
lines in the second quarter compared to the first. Sales volumes for
most products increased moderately compared to very low first quarter
levels. These improvements were partially offset by higher log costs.

Market conditions deteriorated substantially beginning in mid-May. Sales
realizations for lumber and oriented strand board declined sharply. The
company also experienced a considerable drop in sales volumes for
engineered wood products. The segment reduced operating rates
significantly in the latter half of the quarter to match lower market
demand.

3Q 2010 Outlook ? Weyerhaeuser expects a significantly larger
loss from the segment in the third quarter compared to the second
quarter. The company expects average price realizations for lumber and
oriented strand board to drop below first quarter levels.

2Q 2010 Performance ? The segment′s earnings improved
substantially in the second quarter compared to the first due to
significantly higher average price realizations. Energy costs also
declined. As in the first quarter, the segment incurred significant
costs associated with planned annual maintenance, with outages at three
mills compared to two in the first quarter.

3Q 2010 Outlook ? Weyerhaeuser expects third quarter earnings
from the segment to improve substantially compared to the second
quarter. As no annual maintenance outages are scheduled for the third
quarter, the company anticipates lower maintenance costs and improved
production. Average pulp price realizations are expected to increase
from second quarter levels.

2Q 2010 Performance ? Second quarter earnings were comparable to
first quarter, as a decline in sales of partnership interests was offset
by higher earnings from single-family home building operations and
increased land and lot sales.

Second quarter included earnings from single-family homebuilding
operations of $14 million, compared to a loss of $5 million in the first
quarter. Second quarter also included gains of $13 million on the sale
of land and lots, compared to gains of $3 million in the first quarter.
First quarter included gains of $33 million on the sale of two
partnership interests.

Homebuilding operations closed 625 single-family homes in the second
quarter, a 59 percent increase from first quarter. Margins on
single-family homes closed also improved.

3Q 2010 Outlook ? Weyerhaeuser expects breakeven results from
single-family homebuilding operations in the third quarter. The company
expects fewer single-family home closings and slightly lower margins.
Weyerhaeuser does not anticipate any significant land, lot or
partnership sales in the third quarter.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world′s largest forest products
companies, began operations in 1900. We grow and harvest trees, build
homes and make a range of forest products essential to everyday lives.
We manage our timberland on a sustainable basis in compliance with
internationally recognized forestry standards. At the end of 2009, we
employed approximately 14,900 employees in 10 countries. We have
customers worldwide and generated $5.5 billion in sales in 2009. Our
stock trades on the New York Stock exchange under the symbol WY.
Additional information about us is available at http://www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m.
Eastern) on July 30 to discuss second quarter results.

To access the conference call from within North America, dial (877)
296-9413 (access code ? 53832851) at least 15 minutes prior to the call.
Those calling from outside North America should dial 1-(706) 679-2458
(access code ? 53832851). Replays will be available for one week at
(800) 642-1687 (access code ? 53832851) from within North America and at
1-(706) 645-9291 (access code ? 53832851) from outside North America.

The call is being webcast through Weyerhaeuser′s Internet site at http://investor.weyerhaeuser.com
and is accessible by selecting the 'Q2 2010 Earnings Conference Call?
link.

The webcast is available through the Thomson StreetEvents Network to
both institutional and individual investors. Individual investors can
listen to the call at http://www.fulldisclosure.com,
Thomson′s individual investor portal, powered by StreetEvents.
Institutional investors can access the call via Thomson′s
password-protected site, StreetEvents (http://www.streetevents.com).

FORWARD-LOOKING STATEMENTS

This news release contains statements concerning the company′s future
results and performance that are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on various assumptions and may not be accurate
because of risks and uncertainties surrounding these assumptions.
Factors listed below, as well as other factors, may cause actual results
to differ significantly from these forward-looking statements. There is
no guarantee that any of the events anticipated by these forward-looking
statements will occur. If any of the events occur, there is no guarantee
what effect they will have on company operations or financial condition.
The company will not update these forward-looking statements after the
date of this news release.

Some forward-looking statements discuss the company′s plans, strategies
and intentions. They use words such as 'expects,? 'may,? 'will,?
'believes,? 'should,? 'approximately,? 'anticipates,? 'estimates,? and
'plans.? In addition, these words may use the positive or negative or
other variations of those terms.

This release contains forward-looking statements regarding the company′s
expectations during the third quarter of 2010, including the company′s
markets; lower log prices, seasonally higher silviculture costs and
lower operating earnings in Timberlands; lower sales realizations for
lumber and oriented strand board, increased realizations for engineered
wood products and lower earnings in the Wood Products segment; lower
expenses for annual planned maintenance, increased production, higher
pulp price realizations and earnings in the Cellulose Fiber segment;
declines in home sale closings earnings in our single-family
homebuilding operations; and adjustments in tax rates and tax
liabilities related to a REIT conversion.

Major risks, uncertainties and assumptions that affect the company′s
businesses and may cause actual results to differ from these
forward-looking statements, include, but are not limited to:

• 
  the effect of general economic conditions, including the level of
  interest rates, availability of financing for home mortgages, strength
  of the U.S. dollar, employment rates and housing starts;
  
• 
  market demand for the company′s products, which is related to the
  strength of the various U.S. business segments and economic conditions;
  
• 
  performance of the company′s manufacturing operations, including
  maintenance requirements;
  
• 
  the level of competition from domestic and foreign producers;
  
• 
  raw material prices;
  
• 
  energy prices;
  
• 
  transportation costs;
  
• 
  the effect of weather;
  
• 
  the risk of loss from fires, floods, windstorms, hurricanes, pest
  infestation and other natural disasters;
  
• 
  the successful execution of internal performance plans, including
  restructurings and cost reduction initiatives;
  
• 
  federal tax policies;
  
• 
  the effect of forestry, land use, environmental and other governmental
  regulations;
  
• 
  legal proceedings;
  
• 
  the effect of timing of retirements and changes in the market price of
  company stock on charges for stock-based compensation;
  
• 
  changes in accounting principles;
  
• 
  performance of pension fund investments and related derivatives; and
  
• 
  other factors described under 'Risk Factors? in the Company′s annual
  report on Form  10-K.
  

The company also is a large exporter and is affected by changes in
economic activity in Europe and Asia, particularly Japan and China. It
also is affected by changes in currency exchange rates, particularly the
relative value of the U.S. dollar to the euro and the Canadian dollar.
Restrictions on international trade or tariffs imposed on imports also
may affect the company.