November 5, 2007   POPE & TALBOT: Consolidated Balance Sheet as of June 30, 2007                        Pope & Talbot, Inc.               Condensed Consolidated Balance Sheets                        As of June 30, 2007 ASSETS Current assets:   Cash and cash equivalents                       $2,710,000   Restricted cash                                  1,846,000   Accounts receivable                             95,472,000   Inventories                                    140,399,000   Prepaid expenses                                18,921,000                                               -------------- Total current assets                             259,378,000 Properties:   Plant and equipment                            884,052,000   Accumulated depreciation                      (513,873,000)                                               --------------                                                  370,179,000   Land and timber cutting rights                  21,256,000                                                 --------------                                                  391,435,000 Other assets:   Deferred charge                                 25,051,000   Other                                           31,143,000                                               -------------- Total other assets                              $681,956,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:   Book cash overdraft                             $5,678,000   Current portion of long-term debt              220,997,000   Accounts payable                                57,564,000   Accrued payroll and related taxes               25,234,000   Income taxes payable                               528,000   Other accrued liabilities                       25,672,000                                               -------------- Total current liabilities                        335,673,000 Long-term liabilities:   Long-term debt, net of current portion         133,892,000   Deferred income tax liability, net              22,789,000   Pension and post-retirement benefits            91,428,000   Other long-term liabilities                     17,304,000                                               -------------- Total long-term liabilities                      265,413,000 Commitments and contingencies Stockholders' equity:   Preferred stock                                          -     Common stock                                    17,208,000   Additional paid-in capital                      66,403,000   Retained earnings                               14,966,000   Common stock held in treasury, at cost         (11,950,000)   Accumulated other comprehensive income,   net of tax:      Pension obligations not recognized       in net periodic benefit costs              (42,034,000)          Cumulative transaction adjustment            36,133,000      Financial derivative contracts                  144,000                                               --------------                                                   (5,757,000)                                               -------------- Total stockholders' equity                        80,870,000                                               -------------- Total liabilities and stockholders' equity      $681,956,000  Headquartered in Portland, Oregon, Pope & Talbot Inc. --  http://www.poptal.com/ -- produces pulp and wood based building  products from manufacturing facilities located primarily in  British Columbia, Canada and with smaller operations in the north western United States.  Pacific Rim. The Company's pulp is marketed globally through sales offices in  Portland, Oregon, and Brussels, Belgium, and through agency  sales offices around the world.  Pope & Talbot Sales Europe LLC  sells or facilitates the sale of pulp into northern Europe in  consideration of a 2% sales commission.  P&T Pulp Sales U.S.  operates through its own employees as well as third party sales  agents, and charges a commission of 0.5% on sales through third party agents or 2% on all other sales. In 2006, roughly 38% of the pulp segment's revenues were derived  from sales to Europe, 33% to North America, 26% to Asia and 3%  to other markets.  The company and its U.S. and Canadian subsidiaries have applied  for protection under the Companies' Creditors Arrangement Act of  Canada on Oct. 28, 2007.  PricewaterhouseCoopers Inc. serves as  the Debtors' court-appointed monitor.  Sean Dunphy, Esq., Ashley  John Taylor, Esq., and Kathy Mah, Esq., of Barristers &  Solicitors act as the Debtors' solicitors.