Summarized Income Statement Information of Affiliate

6 Months Ended

Jun. 30, 2011

PLUM CREEK TIMBER CO INC [Member]

Summarized Income Statement Information of Affiliate

The earnings of the Timberland Venture are a significant component of consolidated earnings. See Note 11 of the Notes to Consolidated Financial Statements. Equity earnings for the Timberland Venture were $30 million for the six-month period ending June 30, 2011, and were $29 million for the six-month period ending June 30, 2010. Equity earnings includes the amortization of the difference between the book value of the company’s investment and its proportionate share of the Timberland Venture’s net assets of $3 million and $3 million for each of the six-month periods ended June 30, 2011 and 2010. Furthermore, interest expense in connection with the loan from the Timberland Venture was $29 million and $29 million for each of the six-month periods ended June 30, 2011 and 2010. The table below presents summarized income statement information for the Timberland Venture for the six months ended June 30 (in millions):



	Six Months Ended June 30,
	2011			2010
Revenues	$	7		$	10
Cost of Goods Sold^(A)	8			12
Selling, General and Administrative Expenses	1			1
Operating Income (Loss)	(2		)	(3		)
Interest Income, net	29			29
Net Income before Allocation to Preferred and Common Interests	$	27		$	26


(A)	Cost of Goods Sold includes Depreciation, Depletion and Amortization of $6 million and $10 million for the six-month periods ended June 30, 2011 and 2010, respectively.

PLUM CREEK TIMBERLANDS L P [Member]

Summarized Income Statement Information of Affiliate

The earnings of the Timberland Venture are a significant component of consolidated earnings. See Note 10 of the Notes to Consolidated Financial Statements. Equity earnings for the Timberland Venture were $30 million for the six-month period ending June 30, 2011, and were $29 million for the six-month period ending June 30, 2010. Equity earnings includes the amortization of the difference between the book value of the Operating Partnership’s investment and its proportionate share of the Timberland Venture’s net assets of $3 million and $3 million for each of the six-month periods ended June 30, 2011 and 2010. The table below presents summarized income statement information for the Timberland Venture for the six months ended June 30 (in millions):



	Six Months Ended June 30,
	2011			2010
Revenues	$	7		$	10
Cost of Goods Sold^(A)	8			12
Selling, General and Administrative Expenses	1			1
Operating Income (Loss)	(2		)	(3		)
Interest Income, net	29			29
Net Income before Allocation to Preferred and Common Interests	$	27		$	26


(A)	Cost of Goods Sold includes Depreciation, Depletion and Amortization of $6 million and $10 million for the six-month periods ended June 30, 2011 and 2010, respectively.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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