Weyerhaeuser Company announced it has entered into two distinct agreements with Forest Investment Associates to divest approximately 69,600 acres in Upstate South Carolina for $170 million, and to purchase approximately 60,700 acres of high-quality timberlands in Coastal North Carolina, South Carolina and Mississippi for $163 million. Key attributes of the transaction: Adding high-quality timberlands with attractive timber attributes, including: Mature, highly productive acreage that is well-integrated with existing Weyerhaeuser timberlands and mill operations. Fee ownership with 80% planted pine acreage and strong site productivity, delivering strong long-term timber returns.

Well-stocked timber inventory producing attractive sawlog mix and expected average harvest of 6.9 tons per acre (or 420,000 tons) annually over the first five years. Expected average Adjusted EBITDA from timber operations of approximately $130 per acre (or $7.7 million) annually over the first five year. Acquiring core timberland acreage at an Adjusted EBITDA multiple of 21x1, while divesting less strategic ownership at an Adjusted EBITDA Multiple of 47x1.

Opportunity to enhance real estate cash flows and returns on high-optionality coastal assets. Structured as a tax-efficient like-kind exchange with minimal transaction costs. Adjusted EBITDA multiple calculated as purchase price divided by Weyerhaeuser's forecasted 5-year annual average Adjusted EBITDA from Timber operations.

As a result, investors may be unable to accurately compare the expected impact of the acquisition to our historical results or the results or expected results of other companies that may have treated such matters differently. Moreover, management believes that providing this forward-looking non-GAAP information about the acquisition is useful to investors, and given the uncertain nature of forward-looking statements, the company believe investors are able to take into account the inherent limitations of this forward-looking non- GAAP information. The company cannot predict the occurrence, timing or amount of any of the items that exclude from Adjusted EBITDA estimate.

Accordingly, the actual effect of these items, when determined, could potentially be significant to the calculation of Adjusted EBITDA and actual results may differ materially from its estimate.