New pole company formed

Dec. 18, 2002 — The Pacific Wood Preserving Companiesâ„- and North Pacific Group, Inc.â„- announced Wednesday the formation of a limited liability company to be called North Pacific Pole, LLC.

The purpose of the enterprise is to increase the sales of treated wood distribution and transmission poles into the Western United States.

“This partnership unites the distribution, logistics and sales strength of the North Pacific Group, Inc. with the extensive treating capacity and strong production and technical expertise of The Pacific Wood Preserving Companies,” said Joe Passadore, President of North Pacific Pole, LLC.

All utility poles produced at Pacific’s Sheridan, Oregon and Silver Springs, Nevada wood treating plants that are sold into the Western United States will be marketed through the LLC. North Pacific Group and Pacific are equal members in the enterprise.

“This collaboration makes us more competitive in the marketplace and will be welcomed by our customer base,” said Ken Laughlin, Vice President of Sales for The Pacific Wood Preserving Companies.

The LLC’s customer base includes investor-owned utilities, Rural Electric Cooperatives, irrigation districts, municipalities, government-owned utilities and contractors. “Combining Pacific’s unsurpassed West Coast treating capacity and convenient plant locations with North Pacific’s strong purchasing power and sales expertise will enable us to get the best product at the best price to our customers,” Laughlin said.

The wood treating plants remain under the sole ownership and control of The Pacific Wood Preserving Companies. The LLC has an exclusive treating arrangement with Pacific’s Oregon and Nevada plants for utility poles. Pacific will continue to sell its other products, including lumber, timbers, guardrail and posts through its traditional channels of distribution.

North Pacific will also continue to sell treated poles in states not covered under the LLC agreement.

Treatments offered by the LLC will be a traditional Pentachlorophenol wood preservative at Pacific’s Nevada plant, as well as CuNap-8(tm) (copper naphthenate), a low environmental impact wood preservative that will be offered at Pacific’s Oregon facility. CuNap-8(tm) has quickly gained wide market acceptance by utilities and consumers because it is a non-restricted use preservative and has less restrictive handling and disposal requirements than conventional wood preservatives.

About North Pacific Group, Inc.

Founded in 1948, North Pacific Group, Inc. is an employee-owned corporation and one of the world’s largest merchants of forest products and services. Headquartered in Portland, Oregon, annual sales are over $1 billion. North Pacific Group and its subsidiaries produce or distribute building products, steel, composite and agricultural commodities on a global basis.

The company serves building products retailers, distributors, furniture manufacturers, power companies, metal fabricators and manufacturers, farm supply retailers, food manufacturers and a wide variety of other customers. For more information about North Pacific Group and its products, visit: www.northpacific.com.

About The Pacific Wood Preserving Companies

Pacific has more wood treating capacity on the West Coast than any other wood preserving company. Founded in 1972, it is a privately held business with treating plants in Bakersfield, CA, Eloy, AZ., Silver Springs, NV and Sheridan, OR.

Pacific is known for its innovative new products and focus on low environmental impact wood preservatives. Pacific produces treated utility poles, railroad ties, lumber, timber, guardrail, plywood, posts and other types of treated wood products. For more information about Pacific, visit: www.pacificwood.com.

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