Weyerhaeuser Reports Fourth Quarter, Full Year Results

Weyerhaeuser Company (NYSE: WY) today reported net earnings of $171
million for the fourth quarter, or 32 cents per diluted share, on net
sales of $1.7 billion. This compares with a net loss of $175 million on
net sales of $1.5 billion for the same period last year.

Earnings for the fourth quarter of 2010 include after-tax gains of $119
million from special items. Excluding those items, the company reported
net earnings of $52 million, or 10 cents per diluted share, in the
fourth quarter of 2010. This compares to a net loss before special items
of $109 million in the fourth quarter of 2009.

For the full year 2010, Weyerhaeuser reported net earnings of $1.281
billion, or $3.99 per diluted share, on net sales of $6.6 billion. This
compares with a net loss of $545 million on net sales of $5.5 billion
for the full year 2009. Earnings for the full year 2010 include $1.064
billion from income tax adjustments related to Weyerhaeuser′s conversion
to a Real Estate Investment Trust (REIT).

'The actions we took in 2010 enhanced our ability to return value to our
shareholders through our long-term strategy,? said Dan Fulton, president
and chief executive officer. 'The most significant, our conversion to a
REIT, enhances our ability to manage and grow our core asset ? more than
six million acres of valuable timberlands.

'The record year for our Cellulose Fibers segment due to strong market
conditions and excellent operational performance highlighted our 2010
results,? Fulton said. 'Extremely challenging housing market conditions
affected the financial performance of our Timberlands, Wood Products and
Real Estate segments. We anticipate these market challenges will
continue in 2011.  However, I expect better performance due to ongoing
operational improvements, which will create cost efficiencies and
enhance the relative competitiveness of our businesses.?

As of the end of the fourth quarter of 2010, Weyerhaeuser had 538
million shares outstanding on a diluted basis. Weyerhaeuser′s shares
outstanding increased during the third quarter of 2010 due to payment of
a special dividend of approximately 324 million shares of common stock
and $560 million in cash, paid in conjunction with the company′s
conversion to a REIT.

TIMBERLANDS

4Q 2010 Performance ? Fourth quarter earnings declined $19
million compared with third quarter, primarily due to fewer dispositions
of non-strategic timberlands. Per unit logging costs also increased, as
western operations took downtime to match lower seasonal and market
demand. Fourth quarter included $19 million from disposition of
non-strategic timberlands, compared with $34 million in the third
quarter. Weyerhaeuser continues to defer timber harvest.

1Q 2011 Outlook ? Excluding the disposition of non-strategic
timberlands,Weyerhaeuser expects higher earnings in the first
quarter compared with the fourth. The company expects higher selling
prices for western logs and seasonally higher harvest volumes. A sale of
approximately 82,000 acres of non-strategic timberlands in southwest
Washington announced this morning will contribute approximately $150
million in pre-tax earnings.

WOOD PRODUCTS

4Q 2010 Performance ? The segment′s results before special items
improved $15 million compared with the third quarter. Fourth quarter
included special items of $103 million for asset impairments, closures
and restructuring.

Fourth quarter results improved due to slightly lower log costs and
reduced selling, general and administrative expenses. These factors were
partially offset by seasonally lower sales volumes.

1Q 2011 Outlook ? Excluding the effect of fourth quarter special
items, Weyerhaeuser anticipates a smaller loss from the segment in the
first quarter due to improved operating rates, higher selling prices,
and continued cost reductions.

CELLULOSE FIBERS

4Q 2010 Performance ? The segment′s fourth quarter earnings
declined $43 million compared with third quarter due to increased
maintenance costs and lower production resulting from an annual outage
at the New Bern, N.C. mill. Fiber, chemical and energy costs also
increased. There were no maintenance outages in the third quarter.

1Q 2011 Outlook ? Weyerhaeuser expects Cellulose Fibers earnings
to decline in the first quarter due to an increase in the number of
scheduled annual maintenance outages.

REAL ESTATE

4Q 2010 Performance ? Thesegment′s earnings before
special items increased $13 million compared with the third quarter.
Fourth quarter included special items of $20 million for asset
impairments and restructuring.

Earnings from single-family homebuilding rose due to additional home
sale closings and higher margins. Home sale closings increased 21
percent compared with the third quarter to 606 single-family homes.
Margins on homes closed improved slightly due to mix.

Fourth quarter earnings included $6 million from the sale of land, lots
and apartments, compared with $4 million from sale of land and lots in
the third quarter.

1Q 2011 Outlook ? Weyerhaeuser expects a small loss from
single-family homebuilding operations in the first quarter due to
seasonally fewer home sale closings and lower margins.

OTHER

Fourth quarter earnings include a pre-tax gain of $46 million on the
sale of five short line railroads. Fourth quarter also includes income
tax adjustments of $177 million, including benefits of $149 million from
the Cellulosic Biofuel Producers Credit and $22 million from reversal of
deferred tax liabilities related to the company′s REIT conversion.

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 2010, we
employed approximately 14,000 employees in 10 countries. We have
customers worldwide and generated $6.6 billion in sales in 2010. 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 Feb. 4 to discuss fourth quarter results.

To access the conference call from within North America, dial (877)
296-9413 (access code ? 29868228) at least 15 minutes prior to the call.
Those calling from outside North America should dial 1-(706) 679-2458
(access code ? 29868228). Replays will be available for one week at
(800) 642-1687 (access code ? 29868228) from within North America and at
1-(706) 645-9291 (access code ? 29868228) 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 'Q4 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 first quarter of 2011, including housing market
conditions; market challenges for our Timberlands, Wood Products and
Real Estate segments; higher selling prices for western logs and
seasonally higher harvest volumes in Timberlands; improved operating
rates, higher selling prices and cost reductions in the Wood Products
segment; continued strong pricing and increased scheduled maintenance in
the Cellulose Fiber segment; and fewer home sale closings and lower
margins and prices in our single-family homebuilding operations.

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 employment rates,
  housing starts, interest rate levels, availability of financing for
  home mortgages, and strength of the U.S. dollar;
  
• 
  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;
  
• 
  raw material prices;
  
• 
  the successful execution of internal performance plans, including
  restructurings and cost reduction initiatives;
  
• 
  energy prices;
  
• 
  the level of competition from domestic and foreign producers;
  
• 
  the effect of weather;
  
• 
  transportation costs;
  
• 
  the risk of loss from fires, floods, windstorms, hurricanes, pest
  infestation and other natural disasters;
  
• 
  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.