X0202 4 2004-11-10 0000079716 POTLATCH CORP PCH 0001185158 GILLIS RUTH ANN M W. 601 RIVERSIDE AVENUE, SUITE 1100 SPOKANE WA 99201 1 0 0 0 Stock Option (right to buy) 33.18 2004-11-10 4 D 0 5000 D 2013-12-04 Common Stock 5000 0 D Stock Option (right to buy) 31.6066 2004-11-10 4 A 0 5249 A 2013-12-04 Common Stock 5249 5249 D On October 25, 2004, the Board of Directors of Potlatch Corporation (the "Company") declared a special cash dividend to stockholders of record on November 10, 2004. The Company's applicable stockholder-approved stock incentive plans require proportionate adjustment of the exercise price and the number of shares of common stock covered by outstanding awards under such plans in a manner determined by the Executive Compensation and Personnel Policies Committee of the Company's Board of Directors to reflect the declaration of the special cash dividend. The adjustment of the outstanding award is being reported as a deemed cancellation and regrant of the original stock option to clarify the change in the exercise price and number of shares covered by the subject stock option. The original option provided for vesting in two equal annual installments following the date of grant. The option has no purchase or sale price, therefore Column 8 has been left blank. Malcolm A. Ryerse, Attorney-in-fact 2004-11-12