Lumber Market News January 2, 2008 Year end inventory reductions exerted downward price pressure on the commodity lumber, plywood and OSB markets during the first two weeks of December. Then, with many producers taking holiday downtime during the last half of the month, most commodity prices held steady as the slow demand was balanced by much less production volume. The only commodity products that did not experience price declines for the month were 2x12 Hem-Fir prices that held steady and long length Green Doug Fir dimension that had a modest increase. Due to the widespread market weakness during December, F.E. Wheaton’s January price composite has moved lower to virtually mirror our November composite. Prices for most commodity products are now trading at price levels which the market has not seen since the early months of 2003. Western Red Cedar products are slowly beginning to be offered again by the mills at significantly higher prices than before the strike. Some products, especially Western Red Cedar boards, are being priced similar to the thicker Inland Red Cedar board prices. However, F. E. Wheaton has held Cedar prices steady until we can obtain more clarity from our suppliers as to the long term availability of Cedar board and dimension products. In regard to our other core products, F.E. Wheaton has kept pricing unchanged in January for Doors, Moldings and Windows. Sincerely, Gene Bailey Commodity/Cedar Purchasing If you have any comments or questions regarding Lumber Market News, please email us.