Exhibit (12)

Potlatch Corporation

Computation of Ratio of Earnings to Fixed Charges

(in thousands)

	2002		2001		2000		1999	1998
Earnings (loss) from continuing operations before taxes on income	(83,497	)	(92,731	)	(54,742	)	84,210	45,947
Add:
Interest expense	59,882		77,853		59,438		45,442	49,744
Rental expense factor (1)	4,232		4,248		4,266		4,017	3,399
Discount and loan expense amortization	2,688		3,755		508		460	300
Earnings available for fixed charges	(16,695	)	(6,875	)	9,470		134,129	99,390
Fixed charges:
Interest expense	59,882		77,853		59,438		45,442	49,744
Capitalized interest	300		1,032		3,964		10,320	5,070
Rental expense factor (1)	4,232		4,248		4,266		4,017	3,399
Discount and loan expense amortization	2,688		3,755		508		460	300
Total fixed charges	67,102		86,888		68,176		60,239	58,513
Ratio of earnings to fixed charges	(.2	)	(.1	)	.1		2.2	1.7

(1) “Rental expense factor” is the portion of rental expense estimated to be representative of the interest factor within rental expense.

The dollar amount of deficiency in earnings available for fixed charges for a one-to-one ratio for the years 2002, 2001 and 2000 are $83,797, $93,763 and $58,706, respectively.