Pope & Talbot Announces Further Extension to Lender Agreement

Pope & Talbot, Inc. (Pink Sheets:PTBT), today announced that it has agreed to a further extension of its forbearance agreement with its senior secured lenders. The agreement will extend the company’s access to liquidity provided by the revolving credit facility through October 26, 2007. The company will use this additional time to continue to explore options for improving its balance sheet, including, but not limited to, the sale of certain or all of the company’s assets.

Pope & Talbot is a pulp and wood products business. The Company is based in Portland, Oregon, and trades on the Pink Sheets under the symbol PTBT. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the U.S. and Canada. Markets for the Company’s products include the U.S., Europe, Canada, South America and the Pacific Rim. For more information, please check our website at www.poptal.com.

Caution Regarding Forward-Looking Statements

This press announcement and other Company communications may contain statements relating to future performance of the Company that are forward-looking statements. These statements relate to the Company’s future plans, objectives, expectations and intentions and may be identified by words like “believe,”“expect,” “may,”“will,” “should,”“seek,” or “anticipate,” and similar expressions. The Company cautions readers that any such forward-looking statements are based on assumptions that the Company believes are reasonable, but are subject to a wide range of risks, including, but not limited to, risks associated with future financial results and liquidity, including the Company’s continued ability to finance its operations in the normal course, the continuation of the forbearance agreement without the occurrence of a termination event thereunder or the potential necessity for additional forbearance agreements, the possibility that the Company may need to commence bankruptcy proceedings, fluctuation of the borrowing base and other limitations that may affect the Company’s ability to borrow under its revolving credit facilities or otherwise, the Company’s relationship with and payment terms provided by its trade creditors, additional financing requirements, the results of renegotiating certain key commercial agreements, the effect of commodity and raw material prices, foreign currency fluctuations, the effect of U.S. housing market conditions and other uncertainties previously detailed in the Company’s filings with the SEC. Due to these uncertainties, there is an inherent risk that actual results will differ materially from any forward-looking statements. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any forward-looking statements whether as a result of new information, future events or otherwise.