<B>Pope & Talbot Expects Difficult Quarter</B>

Pope & Talbot, Inc. announced that its fourth quarter earnings have been negatively impacted by soaring energy costs, continued deterioration in lumber prices and weakness in the short fiber pulp market. As a result, earnings per share are expected to be below many security analyst's expectations.

Michael Flannery, chairman and CEO commented, ``The effects of a slowing economy and seasonally weak markets are being compounded by unusually high prices for natural gas and energy. Both pulp and lumber segments are expected to report results which are lower than the previous quarter.''