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Weyerhaeuser News Release

Weyerhaeuser Reports First Quarter Results

FEDERAL WAY, Wash., April 27, 2012 Weyerhaeuser Company (NYSE: WY) today reported net earnings of $41 million for the first quarter, or 8 cents per diluted share, on net sales of $1.5 billion. This compares with net earnings of $99 million on net sales from continuing operations of $1.4 billion for the same period last year.

Earnings for the first quarter of 2012 include after-tax gains of $32 million from special items. Excluding these items, the company reported net earnings of $9 million, or 2 cents per diluted share. This compares with net earnings before special items of $3 million, or breakeven results per diluted share, in the first quarter of 2011.

"Even as indicators of a modestly improving U.S. housing market begin to emerge, we remain relentlessly focused on improving our financial performance," said Dan Fulton, president and chief executive officer. "We will take full advantage of recovering markets while positioning Weyerhaeuser for future growth, to the benefit of our shareholders."

WEYERHAEUSER FINANCIAL HIGHLIGHTS

2011

2012

2011

(millions, except per share data)

4Q

1Q

1Q

Net sales from continuing operations

$1,615

$1,494

$1,422

Net earnings (1)

$65

$41

$99

Weighted average shares outstanding, diluted

538

540

540

Earnings per diluted share (1)

$0.12

$0.08

$0.18

Net earnings before special items (2)

$77

$9

$3

Earnings per diluted share before special items

$0.14

$0.02

$0.00

Net cash from operations

$147

($60)

($87)

Net change in cash and cash equivalents

($18)

($225)

($4)

Cash and cash equivalents at end of period

$953

$728

$1,463

(1) The first quarter of 2011 included net earnings of $1 million from discontinued operations, or $0.00 per diluted share, on net sales of $156 million. Discontinued operations include Weyerhaeuser's hardwoods and Westwood Shipping Lines businesses, which were sold in the third quarter of 2011.

(2) Special items for the first quarter of 2011 include an after-tax gain of $96 million from the sale of non-strategic timberlands.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)

4Q 2011

1Q 2012

Change

Net sales

$274

$250

($24)

Contribution to pre-tax earnings before special items

$70

$71

$1

Pre-tax special items

GAAP contribution to pre-tax earnings

$70

$71

$1

1Q 2012 Performance – The segment's results improved slightly compared with the fourth quarter. Income from operations increased $13 million, primarily due to lower Western operating costs. This was mostly offset by a $12 million decline in earnings from the disposition of non-strategic timberlands. Fee harvest volumes increased.

2Q 2012 Outlook – Weyerhaeuser expects modestly higher earnings from the Timberlands segment in the second quarter. The company expects higher log sales volumes and slightly improved domestic prices for Western logs, partially offset by an overall increase in fuel costs and seasonally higher silviculture expenses.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

4Q 2011

1Q 2012

Change

Net sales

$542

$634

$92

Charge to pre-tax earnings before special items

($61)

($22)

$39

Pre-tax special items

(19)

19

GAAP charge to pre-tax earnings

($80)

($22)

$58

1Q 2012 Performance – Results before special items improved $39 million compared with the fourth quarter. Sales volumes and prices were higher across all product lines, and operating rates improved. These factors were partially offset by increased freight expense.

2Q 2012 Outlook – Weyerhaeuser anticipates approximately breakeven results from the Wood Products segment in the second quarter. The company expects higher sales volumes across all product lines and improved selling prices for lumber.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)

4Q 2011

1Q 2012

Change

Net sales

$523

$473

($50)

Contribution to pre-tax earnings before special items

$134

$44

($90)

Pre-tax special items

GAAP contribution to pre-tax earnings

$134

$44

($90)

1Q 2012 Performance – First quarter earnings declined $90 million compared with fourth quarter. Average selling prices for pulp were lower, and sales volumes decreased. Maintenance costs increased significantly and production declined as the segment completed two planned annual maintenance outages in the first quarter. There were no annual maintenance outages in the fourth quarter.

2Q 2012 Outlook – Weyerhaeuser expects slightly higher earnings from the Cellulose Fibers segment in the second quarter due to improved selling prices for pulp, partly offset by higher planned annual maintenance expense.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)

4Q 2011

1Q 2012

Change

Net sales

$276

$137

($139)

Contribution (charge) to pre-tax earnings before special items

$41

($8)

($49)

Pre-tax special items

GAAP contribution (charge) to pre-tax earnings

$41

($8)

($49)

1Q 2012 Performance – The segment's earnings declined $49 million compared with the fourth quarter. Home closings declined seasonally to 349 single-family homes, and average margins on homes closed fell 8 percentage points due to mix. First quarter results include earnings of $1 million from lot sales, compared with $19 million from the sale of land and lots in the fourth quarter.

At the end of the first quarter the backlog of homes sold, but not closed, totaled 777 units, a 27 percent increase compared with one year ago.

2Q 2012 Outlook – Weyerhaeuser expects a slight profit from the Real Estate segment in the second quarter. A land sale completed in April 2012 will contribute approximately $10 million to earnings. The company anticipates a small loss from single family homebuilding operations. Home closings should increase seasonally.

OTHER ITEMS

First quarter Unallocated Items include net pre-tax gains of $38 million from special items, comprised of a gain of $52 million from postretirement plan amendments and charges of $14 million for impairments, restructuring and other items.

First quarter special items also include a benefit of $8 million for income tax settlements.

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 2011, we employed approximately 12,800 employees in 11 countries. We have customers worldwide and generated $6.2 billion in sales from continuing operations in 2011. Our stock trades on the New York Stock exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

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