FORWARD-LOOKING STATEMENTS

This report contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on various assumptions and may not be accurate because of risks and uncertainties surrounding these assumptions. Factors listed below, as well as other factors, may cause actual results to differ significantly from these forward-looking statements. There is no guarantee that any of the events anticipated by these forward-looking statements will occur. If any of the events occur, there is no guarantee what effect they will have on company operations or financial condition. The company will not update these forward-looking statements after the date of this news report.

FORWARD-LOOKING TERMINOLOGY

Some forward-looking statements discuss the company's plans, strategies and intentions. They use words such as "expects," "may," "will," "believes," "should," "approximately," "anticipates," "estimates," and "plans." In addition, these words may use the positive or negative or other variations of those terms.

STATEMENTS

This report contains forward-looking statements regarding the company's expectations during the fourth quarter of 2008 regarding:

• The company's markets;

• Earnings and performance of the company's business segments;

• Continued declines in homebuilding starts;

• Lower timberland harvest levels;

• Decreasing pricing and volumes for the company's wood products;

• Lower pulp prices;

• Lower average sales price realizations for home sales; and

• Related matters.

RISKS, UNCERTAINTIES AND ASSUMPTIONS

The major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ from these forward-looking statements, include, but are not limited to:

• The effect of general economic conditions, including housing starts, the level of interest rates and employment rates;

• Market demand for the company's products, which may be tied to the relative strength of various U.S. business segments and economic conditions;

• Performance of the company's manufacturing operations, including unexpected maintenance requirements;

• The successful execution of internal performance plans and cost reduction initiatives;

• The level of competition from domestic and foreign producers;

• The effect of forestry, land use, environmental and other governmental regulations, and changes in accounting regulations;

• The effect of weather;

• The risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;

• Energy prices;

• Raw material prices;

• Chemical prices;

• Transportation costs;

• Legal proceedings;

• The effect of timing of retirements and changes in the market price of company stock on charges for stock-based compensation; and

• Performance of pension fund investments and related derivatives.

The company also is a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan. It also is affected by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Euro and the Canadian dollar. Restrictions on international trade or tariffs imposed on imports also may affect the company.

RESULTS OF OPERATIONS

As disclosed in Note 3: Discontinued Operations and Assets Held for Sale, the following operations are classified as discontinued operations in the accompanying consolidated financial statements:

• Weyerhaeuser Australia Group assets (sold in July 2008);

• Containerboard, Packaging, and Recycling assets (sold in August 2008); and

• Fine paper business and related assets (divested as part of the Domtar Transaction in March 2007).

In reviewing our results of operations, it's important to understand these terms:

• Price realizations refer to net selling prices - this includes selling price plus freight minus normal sales deductions.

• Contribution (charge) to earnings refers to:

• earnings before interest and income taxes for the Weyerhaeuser business segments and

• earnings before income taxes for the Real Estate business segment. Interest that previously was capitalized to Real Estate assets that are sold or impaired is included in cost and operating expenses or charge for impairment of long-lived assets, respectively, and is included in contribution to earnings for the Real Estate segment.

In reviewing our results of operations, it's important to understand the following:

• Net sales and revenues and operating income (loss) included in Consolidated Results below exclude the results of discontinued operations.

• Net sales and revenues and contribution (charge) to earnings reported in the individual segment discussions that follow include the results of discontinued operations. Refer to Note 17: Business Segments for a discussion of which segments include the results of the various discontinued operations.

In the following discussion, unless otherwise noted, references to increases or decreases in income and expense items, price realizations, shipment volumes, and contributions (charge) to earnings are based on the 13-week and 39-week periods ended September 28, 2008 and September 30, 2007. The 13-week periods are also referred to as third quarter and the 39-week periods are also referred to as year-to-date.

Effective July 2008, there were changes in senior management responsibility for Weyerhaeuser's international operations outside of North America, which consist primarily of timberlands and related converting operations in South America. As a result, these operations, which previously were reported as part of the Corporate and Other segment, are now reported as part of the Timberlands segment. Results of international operations that have been disposed of and results of the company's investment in Uruguay, prior to its restructuring in second quarter 2008, continue to be reported in the Corporate and Other segment. Segment results for prior periods have been recast to present information consistent with the current presentation.

CONSOLIDATED RESULTS

How We Did in the Third Quarter and Year-To-Date 2008

NET SALES AND REVENUES / OPERATING INCOME / NET EARNINGS - WEYERHAEUSER COMPANY



                                                THIRTEEN WEEKS                        AMOUNT OF                        THIRTY-NINE WEEKS                       AMOUNT OF
                                                    ENDED                              CHANGE                                ENDED                              CHANGE
DOLLAR
AMOUNTS IN MILLIONS, EXCEPT         SEPTEMBER 28,            SEPTEMBER 30,                                   SEPTEMBER 28,            SEPTEMBER 30,
PER-SHARE FIGURES                       2008                     2007               2008 VS. 2007                2008                     2007               2008 VS. 2007
Net sales and revenues             $         2,107          $         2,797        $          (690 )        $         6,323          $         8,379        $        (2,056 )
Operating income (loss)            $          (355 )        $            53        $          (408 )        $          (992 )        $            41        $        (1,033 )
Earnings of discontinued
operations, net of taxes           $           480          $           106        $           374          $           678          $           972        $          (294 )
Net earnings                       $           280          $           101        $           179          $            36          $           853        $          (817 )
Net earnings per share,
basic                              $          1.33          $          0.47        $          0.86          $          0.17          $          3.84        $         (3.67 )
Net earnings per share,
diluted                            $          1.33          $          0.47        $          0.86          $          0.17          $          3.84        $         (3.67 )


Comparing 2008 with 2007

In 2008:

• Net sales and revenues decreased $690 million, or 25 percent, during the third quarter and $2 billion, or 25 percent year-to-date.

• Net earnings increased $179 million during the third quarter and decreased $817 million year-to-date.

Net sales and revenues

Net sales and revenues for the third quarter and year-to-date decreased primarily due to the sale of the Containerboard, Packaging and Recycling business and the continued slowdown in the U.S. housing market, which was reflected in:

• lower demand for residential building products - refer to the Wood Products segment discussion; and

• declines in the average selling prices and in the number of single-family homes closed - refer to the Real Estate segment discussion.

Net earnings

Net earnings for the third quarter increased primarily due to:

• gains from the sale of our Containerboard, Packaging and Recycling business and Australian operations in the third quarter of 2008 - refer to the Corporate and Other segment discussion;

• decreased costs of production for wood products and lower selling and administrative costs - refer to the Wood Products segment discussion; and

• increased price realizations for pulp products - refer to the Cellulose Fibers segment discussion.

The increases for the third quarter were partially offset by:

• higher logging costs and lower western domestic and export log price realizations - refer to the Timberlands segment discussion;

• lower price realizations for softwood lumber, hardwood lumber and engineered products, and decreased shipment volumes - refer to the Wood Products segment discussion;

• lower volumes and lower gross margins on land sales and single-family homes closed and increased asset impairment charges - refer to the Real Estate segment discussion;

• lower pulp sales volumes and higher costs for energy, chemicals, freight and fiber - refer to the Cellulose Fibers segment discussion;

• loss of earnings due to the sale of Containerboard, Packaging and Recycling business - refer to the Containerboard, Packaging and Recycling segment discussion; and

• charges related to corporate restructuring activities and the write-off of capitalized interest related to Real Estate projects that are impaired - refer to the Corporate and Other segment discussion.

Net earnings for the year-to-date period of 2008 increased due to the third quarter items noted above as well as gains from the restructuring of our investments in Uruguay and from changes in our postretirement benefit plans - refer to the Corporate and Other segment discussions.

The increases for the year-to-date period of 2008 were partially offset due to the third quarter items as well as;

• a net gain from the Domtar Transaction in the first quarter of 2007- refer to the Corporate and Other segment discussion; and

• losses of earnings from operations divested as part of the Domtar Transaction in the first quarter of 2007 - refer to the Fine Paper segment discussion.

TIMBERLANDS

How We Did in the Third Quarter and Year-To-Date 2008

Here is a comparison of net sales and revenues to unaffiliated customers, intersegment sales, and contribution to earnings for the 13 and 39-week periods ended September 28, 2008 and September 30, 2007:

NET SALES AND REVENUE / CONTRIBUTION TO EARNINGS - TIMBERLANDS



                                                                          AMOUNT OF                                                           AMOUNT OF
                                   THIRTEEN WEEKS ENDED                    CHANGE                     THIRTY-NINE WEEKS ENDED                  CHANGE
DOLLAR AMOUNTS IN           SEPTEMBER 28,         SEPTEMBER 30,                                 SEPTEMBER 28,         SEPTEMBER 30,
MILLIONS                        2008                  2007              2008 VS. 2007               2008                  2007              2008 VS. 2007
Net sales and
revenues to
unaffiliated
customers:
Logs                       $           180       $           168       $            12         $           497       $           510       $           (13 )
Other Products                          74                    84                   (10 )                   178                   190                   (12 )

                           $           254       $           252       $             2         $           675       $           700       $           (25 )

Intersegment sales         $           253       $           329       $           (76 )       $           821       $         1,040       $          (219 )

Contribution to
earnings                   $           107       $           163       $           (56 )       $           322       $           479       $          (157 )

Comparing 2008 with 2007

In 2008:

• Net sales and revenues to unaffiliated customers increased $2 million, or 1 percent, during the third quarter of 2008 and decreased $25 million, or 4 percent year-to-date.

• Intersegment sales decreased $76 million, or 23 percent, during the third quarter of 2008 and $219 million, or 21 percent, year-to-date.

• Contribution to earnings decreased $56 million, or 34 percent, during the third quarter of 2008 and $157 million, or 33 percent, year-to-date.

Net sales and revenue - unaffiliated customers

Net sales and revenues to unaffiliated customers in the third quarter of 2008 were comparable to the third quarter of 2007. The following factors positively affected net sales and revenues in the third quarter:

• Fiber log sales volumes in the South increased as a result of fiber and chip shortages.

• The sale of our Containerboard, Packaging and Recycling business resulted in higher external sales volumes as sales that were previously intersegment are now sales to third-parties.

These increases were substantially offset by lower sales of non-strategic timberlands.

Net sales and revenues to unaffiliated customers year-to-date in 2008 decreased from year-to-date in 2007 primarily due to the following:

• Western log sales realizations decreased 17 percent during the first 39 weeks due to weaker domestic and export markets, as well as a higher volume of lower-valued whitewood logs due to storm salvage. Volumes in the West increased 14 percent due to the salvage volumes, but at a lower realization.

• Canadian sales volumes decreased 38 percent. There were lower logging levels in all provinces as a result of downtime at various mills and the completion of the Domtar Transaction in the first quarter of 2007.

These decreases were partially offset by Southern log sales volumes, which increased 33 percent, and realizations, which increased 15 percent. There was a stronger market for fiber logs as pulp and containerboard mills experienced lower available volumes of residual chips due to sawmill downtime.

Intersegment sales

Intersegment sales decreased in both the third quarter and year-to-date, primarily due to the following:

• Western sales decreased $21 million during the third quarter and $76 million year-to-date, due to lower internal consumption and weaker domestic markets.

• Southern sales decreased $18 million during the third quarter and $38 million year-to-date, due to lower internal consumption resulting from the third quarter 2008 sale of the Containerboard, Packaging and Recycling business, partially offset by higher internal fiber realizations.

• Canadian sales decreased $32 million during the third quarter and $95 million year-to-date. The third quarter decline was due to lower mill operating postures and mill closures. The year-to-date decline also reflects lower sales as a result of the completion of the Domtar Transaction in 2007.

Contribution to earnings

Contribution to earnings decreased primarily due to the following:

• Lower western domestic and export sales price realizations reduced the segment's contribution by $33 million in the third quarter and $118 million year-to-date.

• Higher logging, hauling and handling costs as a result of Western salvage logging activities and the effects of higher diesel fuel prices on logging, hauling and silviculture costs resulted in a decrease to the contribution of $16 million in the third quarter and $48 million year-to-date.

• Fewer sales of non-strategic land resulted in a $26 million decrease in contribution in the third quarter and $35 million year-to-date.

These decreases were partially offset by:

• Higher fee harvest volumes, primarily due to the Western salvage logging from the December 2007 storm, resulted in an increase in contribution of $4 million in the third quarter and $15 million year-to-date.

• Higher oil and gas leasing revenues resulted in an increase in contribution of $11 million in the third quarter and $21 million year-to-date.

Our Outlook

We expect fourth quarter earnings from the Timberlands segment to be lower than third quarter. Fee harvest volumes are expected to be lower and average price realizations are expected to decline due to the weak domestic market.

THIRD-PARTY LOG SALES VOLUMES AND FEE HARVEST VOLUMES



                                                      THIRTEEN WEEKS ENDED           THIRTY-NINE WEEKS ENDED
                                                  SEPTEMBER 28,   SEPTEMBER 30,   SEPTEMBER 28,   SEPTEMBER 30,
VOLUMES IN THOUSANDS                                  2008            2007            2008            2007
Third-party log sales - cunits (100 cubic feet)             875             805           2,650           2,317
Fee harvest - cunits (100 cubic feet)                     2,061           2,029           6,331           6,207

WOOD PRODUCTS

How We Did in the Third Quarter and Year-To-Date 2008

Here is a comparison of net sales and revenues to unaffiliated customers and charge to earnings for the 13 and 39-week periods ended September 28, 2008 and September 30, 2007:

NET SALES AND REVENUE / CHARGE TO EARNINGS - WOOD PRODUCTS



                                                                                           AMOUNT OF                                                             AMOUNT OF
                                                  THIRTEEN WEEKS ENDED                      CHANGE                     THIRTY-NINE WEEKS ENDED                    CHANGE
                                          SEPTEMBER 28,           SEPTEMBER 30,                                 SEPTEMBER 28,           SEPTEMBER 30,
DOLLAR AMOUNTS IN MILLIONS                    2008                    2007               2008 VS. 2007              2008                    2007               2008 VS. 2007
Net sales and revenues:
Softwood lumber                          $           393         $           580        $          (187 )      $         1,157         $         1,801        $          (644 )
Engineered solid section                             114                     155                    (41 )                  340                     495                   (155 )
Engineered I-Joists                                   79                     124                    (45 )                  238                     388                   (150 )
Oriented strand board                                113                     151                    (38 )                  328                     456                   (128 )
Plywood                                               48                      89                    (41 )                  164                     295                   (131 )
Hardwood lumber                                       72                      89                    (17 )                  232                     278                    (46 )
Other products produced                               63                      61                      2                    163                     175                    (12 )
Other products purchased for resale                  124                     200                    (76 )                  421                     693                   (272 )

                                         $         1,006         $         1,449        $          (443 )      $         3,043         $         4,581        $        (1,538 )

Charge to earnings                       $          (146 )       $          (131 )      $           (15 )      $          (587 )       $          (421 )      $          (166 )

Comparing 2008 with 2007

Net sales and revenues and charge to earnings continued to be negatively affected by weak demand from a struggling U.S. homebuilding industry.

In 2008:

• Net sales and revenues decreased $443 million, or 31 percent, during the third quarter of 2008, and $1.5 billion, or 34 percent, year-to-date.

• Charge to earnings increased $15 million during the third quarter of 2008 and $166 million year-to-date.

Net sales and revenue

Net sales and revenues decreased primarily due to the following:

• Demand for wood products continued to be significantly weaker in 2008 with U.S. single-family housing starts on a seasonally adjusted basis declining 39 percent for both the third quarter and year-to-date. This continued to depress shipment volumes and prices for most product lines.

• Average price realizations decreased for most of our primary products for both the third quarter and year-to-date due primarily to general pricing trends in the industry:

• Average realizations for lumber decreased 6 percent for the third quarter, and 11 percent year-to-date.

• Average price realizations for engineered I-Joists decreased 8 percent for the third quarter and 9 percent year-to-date.

• Average price realizations for engineered solid section products decreased 5 percent for the third quarter and 8 percent year-to-date.

• Average price realizations for oriented strand board (OSB) increased 5 percent for the third quarter and increased 1 percent year-to-date.

• Shipment volumes declined for both the third quarter and year-to-date as follows:

• Shipment volumes of lumber declined 28 percent for both the third quarter and year-to-date.

• Shipment volumes of OSB declined 29 percent for both the third quarter and year-to-date. The company indefinitely curtailed operations at its Hudson Bay, Saskatchewan OSB facility on July 4, 2008.

• Shipment volumes for engineered I-Joists declined 32 percent for the third quarter and 33 percent year-to-date. Shipment volumes for engineered solid section products declined 23 percent for third quarter and 25 percent year-to-date.

• Sales of other products purchased for resale decreased $76 million for the third quarter and $272 million year-to-date. This was primarily due to the sale or closure of several distribution facilities in the U.S. and Canada, a reduction in the number of products purchased for resale, and the overall decline in demand for building products.

Charge to earnings

Charge to earnings increased $15 million for the third quarter and $166 million year-to-date, primarily due to the following:

• The net change in average price realizations across the major product lines resulted in a decrease of $34 million for the third quarter and a decrease of $206 million year-to-date. The most significant effect for both comparative periods were decreases in average price realizations for softwood lumber, hardwood lumber and engineered products. The change in contribution attributable to these products was a decrease of $46 million for the third quarter and a decrease of $225 million year-to-date.

• Reduced shipment volumes resulted in lower contribution of approximately $40 million for the third quarter and approximately $130 million year-to-date.

These increases were partially offset by:

• Reductions in cost for raw materials, manufacturing, warehousing and delivery, and selling and administrative increased contribution to earnings by $59 million for the third quarter and $183 million year-to-date. Other operating expenses were $1 million less than third quarter 2007 but $18 million more than 2007 year-to-date.

• Net third quarter charges for facility sales, facility closures, asset impairments, restructuring costs and litigation charges were comparable to charges in the third quarter of 2007 and decreased by $5 million year-to-date.

• The third quarter and year-to-date period of 2008 included charges of $38 million and $152 million, respectively, for facility sales, facility closures, asset impairments, restructuring costs, and litigation charges. The year-to-date charges were partially offset by $12 million of gains on property sales, $4 million of which occurred in the third quarter, and a $13 million reduction in the reserve for hardboard siding claims in the third quarter.

• The third quarter and year to date period of 2007 included charges of $30 million and $141 million, respectively, for facility sales, facility closures, asset impairments, restructuring costs and litigation charges. These were partially offset by $9 million of gains on property sales.

Our Outlook

We expect challenging housing market conditions to continue into the fourth quarter. We anticipate operating losses to worsen as prices and volumes decline in the seasonally slower fourth quarter.

THIRD-PARTY SALES VOLUMES



                                             THIRTEEN WEEKS ENDED                   THIRTY-NINE WEEKS ENDED
                                       SEPTEMBER 28,       SEPTEMBER 30,       SEPTEMBER 28,       SEPTEMBER 30,
VOLUMES IN MILLIONS, EXCEPT LOGS           2008                2007                2008                2007
Softwood lumber - board feet                   1,197               1,654               3,706               5,116
Engineered solid section - cubic
feet                                               6                   8                  18                  25
Engineered I-Joists - lineal
feet                                              63                  92                 189                 282
Oriented strand board - square
feet (3/8")                                      595                 835               1,903               2,676
Plywood - square feet (3/8")                     135                 240                 449                 855
Hardwood lumber - board feet                      83                  93                 258                 281

TOTAL PRODUCTION VOLUMES



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