# Tax Treatment of Dividends

**2015**

The company paid reportable distributions totaling $1.76 per share of Common Stock during 2015. These distributions are classified as follows for income tax purposes: $0.000 (0.0000%) per share is classified as Non-dividend Distribution (return of capital) and $1.760 per share (100.0000%) is classified as Capital Gain Distribution on the 2015 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.

The company paid reportable distributions totaling $1.76 per share of Common Stock during 2015. These distributions are classified as follows for income tax purposes: $0.000 (0.0000%) per share is classified as Non-dividend Distribution (return of capital) and $1.760 per share (100.0000%) is classified as Capital Gain Distribution on the 2015 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.

The __2015 Excel spreadsheet__ can assist in calculating your taxes.

**2014**

The company paid reportable distributions totaling $1.76 per share of Common Stock during 2014. These distributions are classified as follows for income tax purposes: $0.000 (0.0000%) per share is classified as Non-dividend Distribution (return of capital) and $1.760 per share (100.0000%) is classified as Capital Gain Distribution on the 2014 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.

The __2014 Excel spreadsheet__ can assist in calculating your taxes.

**2013**

The company paid reportable distributions totaling $1.74 per share of Common Stock during 2013. These distributions are classified as follows for income tax purposes: $0.000 (0.0000%) per share is classified as Non-dividend Distribution (return of capital) and $1.740 per share (100.0000%) is classified as Capital Gain Distribution on the 2013 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.

The 2013 Excel spreadsheet can assist in calculating your taxes

## 2012

The company paid reportable distributions totaling $1.68 per share of Common Stock during 2012. These distributions are classified as follows for income tax purposes: $0.000 (0.0000%) per share is classified as Non-dividend Distribution (return of capital) and $1.680 per share (100.0000%) is classified as Capital Gain Distribution on the 2012 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.The 2012 Excel spreadsheet can assist in calculating your taxes

## 2011

The company paid reportable distributions totaling $1.68 per share of Common Stock during 2011. These distributions are classified as follows for income tax purposes: $0.000 (0.0000%) per share is classified as Non-dividend Distribution (return of capital) and $1.680 per share (100.0000%) is classified as Capital Gain Distribution on the 2011 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.The 2011 Excel spreadsheet can assist in calculating your taxes.

## 2010

The company paid reportable distributions totaling $1.68 per share of Common Stock during 2010. These distributions are classified as follows for income tax purposes: $0.000 (0.0000%) per share is classified as Non-dividend Distribution (return of capital) and $1.680 per share (100.0000%) is classified as Capital Gain Distribution on the 2010 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.The 2010 Excel spreadsheet can assist in calculating your taxes.

## 2009

The company paid reportable distributions totaling $1.68 per share of Common Stock during 2009. These distributions are classified as follows for income tax purposes: $0.000 (0.0000%) per share is classified as Non-dividend Distribution (return of capital) and $1.680 per share (100.0000%) is classified as Capital Gain Distribution on the 2009 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.The 2009 Excel spreadsheet can assist in calculating your taxes.

## 2008

The company paid reportable distributions totaling $1.68 per share of Common Stock during 2008. These distributions are classified as follows for income tax purposes: $0.000 (0.0000%) per share is classified as Non-dividend Distribution (return of capital) and $1.680 per share (100.0000%) is classified as Capital Gain Distribution on the 2008 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.The 2008 Excel spreadsheet can assist in calculating your taxes.

## 2007

The company paid reportable distributions totaling $1.68 per share of Common Stock during 2007. These distributions are classified as follows for income tax purposes: $0.000 (0.0000%) per share is classified as Non-dividend Distribution (return of capital) and $1.680 per share (100.0000%) is classified as Capital Gain Distribution on the 2007 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.The 2007 Excel spreadsheet can assist in calculating your taxes.

## 2006

The company paid reportable distributions totaling $1.60 per share of Common Stock during 2006. These distributions are classified as follows for income tax purposes: $0.000 (0.0000%) per share is classified as Non-dividend Distribution (return of capital) and $1.600 per share (100.0000%) is classified as Capital Gain Distribution on the 2006 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.The 2006 Excel spreadsheet can assist in calculating your taxes.

## 2005

The company paid reportable distributions totaling $1.52 per share of Common Stock during 2005. These distributions are classified as follows for income tax purposes: $0.19557 (12.8666%) per share is classified as Non-dividend Distribution (return of capital) and $1.32443 per share (87.1334%) is classified as Capital Gain Distribution on the 2005 Form 1099-DIV.

Please consult your tax adviser to determine what impact, if any, the above information may have on your tax situation for the current tax year or in future years.The 2005 Excel spreadsheet can assist in calculating your taxes.

## 2004

The company paid reportable dividends totaling $1.42 per share of Common Stock during 2004. These dividends are classified as follows for tax purposes: $0.146437 (10.31249%) per share is classified as Return of Capital (Non-Taxable Distribution) and $1.273563 per share (89.68751%) is classified as Capital Gain Distribution on the 2004 Form 1099-DIV.

You should consult your tax adviser to determine what impact, if any, these allocations may have on your tax situation for the current tax year or in future years.The 2004 Excel spreadsheet can assist in calculating your taxes.

## 2003

The company's reportable 2003 REIT dividends, totaling $1.40 per share of Common Stock, are classified for income tax purposes as follows: $0.388469 (27.74779%) per share is classified as Return of Capital (Non-Taxable Distribution), and $1.011531 per share (72.25221%) is classified as Capital Gain Distribution on the 2003 Form 1099-DIV.

The Jobs Growth and Tax Relief Reconciliation Act of 2003 reduced the maximum individual tax rate for capital gains generally from 20% to 15% (from May 6, 2003 through 2008). Therefore, the Capital Gain Distribution (reported in Box 2a of Form 1099-DIV) is further classified to account for the reduction in rates: $0.346415 is classified as 20% Rate Capital Gain Dividend and $0.665116 is classified as Post-May 5th Capital Gain Distribution (15% Rate Capital Gain Dividend reported in Box 2b of Form 1099-DIV).

Please note that 89.85748% of the 2003 20% Rate Capital Gain Dividend (amount reported in Box 2a of Form 1099-DIV minus the amount reported in Box 2b) is considered "qualified 5-year gain" and is reported in Box 2c of Form 1099-DIV from Plum Creek (be careful not to double count this amount). You may be taxed at a reduced capital gains rate on this amount if you are in the 15% or lower tax bracket. You may have additional qualified 5-year gain if you sold your Plum Creek stock in 2003 before May 6th, and you held it for 5 years (including your holding period on any of The Timber Company stock that was converted to Plum Creek stock as a result of the merger). Please see the instructions to Schedule D of 1040 or consult your tax adviser regarding your ability to get the reduced capital gains rate.

The 2003 Excel spreadsheet can assist in calculating your taxes.

## 2002

The company's reportable 2002 REIT dividends totaling $1.49 per share of Common Stock are classified for income tax purposes as follows: $0.285962 (19.19204%) per share is classified as Return of Capital (Non-Taxable Distribution) and $1.204038 (80.80796%) per share is classified as a 20% Rate Capital Gain Dividend on the 2002 Form 1099-DIV.

Please note that 92.22323% of the 2002 Capital Gain Dividend (reported in Box 2a of Form 1099-DIV) is considered "qualified 5-year gain" and is reported in Box 2c of Form 1099-DIV from Plum Creek (be careful not to double count this amount). This item appeared on last year's Form 1099-DIV. You may be taxed at a reduced capital gains rate on this amount if you are in the 15% or lower tax bracket. You may have additional qualified 5-year gain if you sold your Plum Creek stock in 2002, and you held it for 5 years (including your holding period on any The Timber Company stock that was converted to Plum Creek stock as a result of the merger). Please see the instructions to Schedule D of 1040 or consult your tax adviser regarding your ability to get the reduced capital gains rate.You should consult your tax adviser to determine what impact, if any, these allocations may have on your tax situation for the current tax year or in future years.

The 2002 Excel spreadsheet can assist in calculating your taxes.

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**Former Unitholders of Plum Creek Timber Company, L.P.**

On or about May 1, 2002, a payment was made to unitholders of record as of July 1, 1999, by the former general partner of Plum Creek Timber Company, L.P. (MLP), the predecessor to Plum Creek Timber Company, Inc. (Plum Creek). The former general partner made payments of $0.2916 per unit owned on July 1, 1999, as settlement of a lawsuit arising from the MLP's conversion to a real estate investment trust in 1999. The settlement payment was reported using the name of "Plum Creek Timber Company, L.P." under its former CUSIP number (729237107). **However, Plum Creek did not make this settlement payment, and therefore cannot provide recipients advice regarding its tax treatment. If you were a unitholder on July 1, 1999, and received a settlement payment from the former general partner, please consult your personal tax or financial adviser regarding the tax treatment of this payment. Inquiries about the payment should be made to the Claims Administrator, RSM McGladrey, at 1-800-222-2760.**

As a courtesy to former unitholders of the MLP, Plum Creek has posted a copy of the letter from the Claims Administrator that accompanied the settlement payments. This letter (9 Kb PDF) provides background information that your tax or financial adviser may find useful, as well as contact information for the Claims Administrator.

## 2001

If you were a Plum Creek shareholder for the entire year, you will have received dividends of $2.85 per share during 2001. This amount is classified for income tax purposes as follows: (1) Ordinary Dividend - $1.0109 (35.4690%); Capital Gain Dividend - $1.4230 (49.9306%); and (3) Return of Capital - $0.4161 (14.6004%).

If you became a Plum Creek shareholder as a result of the merger with The Timber Company (TTC) and held your stock the remainder of the year, you will have received dividends of $1.14 per share during 2001. This amount is classified for income tax purposes as follows: (1) Ordinary Dividend - $1.0109 (88.6725%); Capital Gain Dividend - $0.0999 (8.7646%); and (3) Return of Capital - $0.0292 (2.5629%). Please note that any dividends you received from TTC prior to the merger are not included in these amounts and will be reported to you separately.These percentages do not apply if you held varying amounts of Plum Creek stock throughout the year. Please see the 2001 Excel spreadsheet to estimate the taxable components of each of our five distributions made during 2001.

The taxable component of our 1999 and 2000 dividends was designated solely as Capital Gain Dividend. The reason that part of the 2001 dividend is designated as an ordinary dividend relates to Plum Creek's merger with The Timber Company on October 6, 2001. Under applicable tax rules pertaining to REITs, Plum Creek was required to distribute the historic earnings and profits of The Timber Company by December 31, 2001. Distributions of these earnings and profits are considered to be ordinary dividends.Please note that 85.4781% of the 2001 capital gain dividend (reported in Box 2a of Form 1099-DIV) is considered "qualified 5-year gain" and is reported in Box 2c of Form 1099-DIV from Plum Creek (be careful not to double count this amount). This is a new item on this year's Form 1099-DIV. You may be taxed at a reduced capital gains rate on this amount if you are in the 15% or lower tax bracket. You may have additional qualified 5-year gain if you sold your Plum Creek stock in 2001, and you held it for 5 years (including your holding period on any TTC stock that was converted to Plum Creek stock as a result of the merger). Please see the instructions to Schedule D of 1040 or consult your tax adviser regarding your ability to get the reduced capital gains rate.

You should consult your tax adviser to determine what impact, if any, these allocations may have on your tax situation for the current tax year or in future years.The 2001 Excel spreadsheet can assist in calculating your taxes.

## 2000

The company's reportable 2000 REIT dividends totaling $2.28 per share of Common Stock are classified for income tax purposes as follows: $1.3439 (58.9449%) per share is classified as Return of Capital (Non-Taxable Distribution) and $0.9361 (41.0551%) per share is classified as a 20% Rate Capital Gain Dividend on the 2000 Form 1099-DIV.

You should consult your tax adviser to determine what impact, if any, these allocations may have on your tax situation for the current tax year or in future years.The 1999-2000 Excel spreadsheet can assist in calculating your taxes.

## 1999

The company's reportable 1999 REIT dividends totaling $1.14 per share of Common Stock are classified for income tax purposes as follows: $0.5485 (48.1112%) per share is classified as Return of Capital (Non-Taxable Distribution) and $0.5915 (51.888%) per share is classified as a 20% Rate Capital Gain Dividend on the 1999 Form 1099-DIV.

You should consult your tax adviser to determine what impact, if any, these allocations may have on your tax situation for the current tax year or in future years.The 1999-2000 Excel spreadsheet can assist in calculating your taxes.