Longview Fibre Company to Explore Strategic Alternatives

Longview Fibre Company (NYSE: LFB) today announced thatits Board of Directors has decided to explore a range of strategicalternatives to further enhance shareholder value. These strategicalternatives may include, but are not limited to, continued executionof the company's operating plan, a sale or merger of the company orother strategic transaction, and a sale of certain company assets.Goldman, Sachs & Co. and Banc of America Securities LLC, the company'sfinancial advisors, and Skadden, Arps, Slate, Meagher & Flom LLP andPerkins Coie LLP, the company's legal advisors, will assist in thiseffort.

"Our Board of Directors and management are committed to enhancingvalue for our shareholders," said Richard H. Wollenberg, LongviewFibre's President, Chief Executive Officer and Chairman of the Board."Over the last several years, we have taken decisive actions toimprove operations, restructure our company and accelerate thedelivery of value to shareholders, including our conversion to a REITand implementation of our operating plan. With this strong foundation,we believe that now is the right time to explore our strategicalternatives to enable our Board of Directors to determine the bestcourse for enhancing shareholder value."

As part of the exploration of strategic alternatives process,Longview Fibre would anticipate sharing non-public information withinterested parties, including Obsidian Finance Group, LLC and TheCampbell Group, LLC (Obsidian/Campbell), subject to their enteringinto appropriate confidentiality agreements.

The company noted that there can be no assurance that theexploration of strategic alternatives will result in any agreements ortransactions. The company does not intend to disclose developmentswith respect to the exploration of strategic alternatives unless anduntil the Board has made a final decision.

In light of the decision to explore strategic alternatives, theBoard also announced the postponement of the special meeting ofshareholders that it had voluntarily scheduled for September 12, 2006to consider various non-binding, advisory resolutions advocated byObsidian/Campbell. Obsidian/Campbell has also delivered a shareholderdemand for a shareholder meeting relating to their resolutions. Unlessthe demand is withdrawn, the company would expect to have a specialmeeting of shareholders in the fall.

Mr. Wollenberg said, "We have postponed the special meeting ofshareholders that we called because we believe it is important that wedirect our efforts and attention to exploring all strategicalternatives and executing on our operating plan without thedistraction of a special meeting of shareholders."

About Longview Fibre Company

Longview Fibre Company is a diversified timberlands owner andmanager, and a specialty paper and container manufacturer. Usingsustainable forestry methods, the company manages approximately587,000 acres of softwood timberlands predominantly located in westernWashington and Oregon, primarily for the sale of logs to the U.S. andJapanese markets. Longview Fibre's manufacturing facilities include apulp-paper mill at Longview, Washington; a network of convertingplants; and a sawmill in central Washington. The company's productsinclude: logs; corrugated and solid-fiber containers; commodity andspecialty kraft paper; paperboard; and dimension and specialty lumber.Longview Fibre press releases, SEC filings and Annual Reports areavailable at no charge through the company's Web site atwww.longviewfibre.com.

Certain Information Regarding Participants

Longview Fibre Company's directors and certain of its executiveofficers, as well as Longview Fibre Company, may be deemed to beparticipants in any solicitation of Longview Fibre Company'sshareholders in opposition to any solicitation conducted by ObsidianFinance Group, LLC and/or The Campbell Group, LLC or any of theiraffiliates for proxies to vote at a special meeting of Longview FibreCompany shareholders. Shareholders may obtain information regardingthe names, affiliations and interests of such individuals in LongviewFibre Company's proxy statement for the company's 2006 annual meetingof shareholders, filed with the SEC on February 27, 2006 on Schedule14A. A copy of that proxy statement may be obtained free of charge onthe Securities and Exchange Commission's Web site athttp://www.sec.gov, through the link to Longview Fibre Company's SECfilings on the company's Web site at http://www.longviewfibre.com orby directing a request to L.J. McLaughlin, 300 Fibre Way, Longview,Washington 98632, (360) 425-1550.

Important Information

In connection with any special meeting of Longview Fibre Companyshareholders, Longview Fibre Company expects to file a proxy statementand/or other soliciting materials and other relevant documents withthe SEC. Shareholders should read any such proxy statement, othersoliciting materials or other relevant documents when and if theybecome available, because they will contain important information.Shareholders may obtain copies of such documents (when and if theybecome available) free of charge on the SEC's Web site athttp://www.sec.gov, through the link to Longview Fibre Company's SECfilings on the company's Web site at http://www.longviewfibre.com orby directing a request to L.J. McLaughlin, 300 Fibre Way, Longview,Washington 98632, (360) 425-1550.