Western Forest Products Reports Temporary Reductions to its Allowable Annual Timber Cutting Rights

Duncan, British Columbia, Canada, 16 October 2006 -- /PRNewswire/ -- Western Forest Products Inc. (TSX: WEF) reports temporary reductions to its annual timber cutting rights (allowable annual cut [AAC]).

The British Columbia Chief Forester has announced temporary reductions affecting several coastal logging operators' timber harvesting rights. These restrictions total almost 1 million cubic meters to the AACs of specific Tree Farm Licences and Timber Supply Areas of the British Columbia coast. A number of Western Forest Products tenures are affected by these reductions. While apportionment of the temporary AAC reductions to specific licensees is outstanding, it is anticipated that Western's tenures on the Haida Gwaii / Queen Charlotte Islands and the Central Coast will see a total AAC reduction of approximately 450,000 cubic meters. This volume is equivalent to approximately 6% of Western's annual timber harvest rights.

The reductions follow earlier announced provincial orders-in-council that temporarily put various coastal areas off limits to forest development through Part 13 of the Forest Act. The AAC reductions were made to ensure that harvest rates remain at a sustainable level until land use planning is completed in the areas affected by the Part 13 orders.

The Part 13 orders and the temporary AAC reductions were anticipated and have been factored into Western's short-term harvesting and mill production plans. If the Part 13 orders extend for more than four years from the date of issue or the Province's land use planning process results in these reductions becoming permanent, then Western will have the ability to seek compensation from the Province for the reduced cutting rights thereafter.

Western Forest Products

Western is an integrated Canadian forest products company and the largest coastal British Columbia woodland operator and lumber producer with an Annual Allowable Cut of approximately 7.7 million cubic meters of timber (before temporary AAC reductions) and lumber capacity in excess of 1.5 billion board feet from nine sawmills and five remanufacturing plants. Principal activities conducted by the company and its subsidiaries include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, and value-added remanufacturing.

Substantially all of Western's logging is conducted on government-owned timberlands in British Columbia. All of Western's operations, employees, and corporate facilities are located in the coastal region of British Columbia. Its products are sold in more than 20 countries worldwide.

Source: Western Forest Products Inc.