Firms to Ask Longview Shareholders to Support Deal

APRIL 18, 2006 – Obsidian Finance Group, LLC, a private equity firm, together with The Campbell Group, LLC, a timber investment management company, today commented on Longview Fibre Company’s latest rejection of their offer to acquire the Company for $26 per share in cash.

Obsidian senior principal David Brown said, “At no time in the four months since we first approached Longview Fibre with our $26 cash offer, a 36% premium to the unaffected price, has Longview’s management or board been willing to meet or talk with us directly about our proposal. Instead, Longview Fibre has permitted us to have only limited conversations with its advisors. We have been patient and worked diligently through the advisors to address all questions, while reiterating our interest and the benefits of our proposal in a series of letters sent to the Chairman and members of the Board. Longview and its advisors have not constructively responded or replied to any of our letters.”

Brown continued, “Simply put, we are ready to complete this transaction cleanly and quickly, and believe the assertions made by Longview Fibre to the contrary in its press release and shareholder presentation regarding our proposal are disingenuous at best. As we have demonstrated to Longview, together with The Campbell Group, we have the necessary equity capital committed to complete this transaction and JPMorgan remains highly confident with respect to the debt financing. We have requested only confirmatory due diligence that we could complete in four weeks and would have completed long ago if Longview Fibre had only permitted us to proceed.”

“We are committed to this transaction, and believe that Longview shareholders agree that our all-cash proposal would offer higher—and more certain and immediate—value to shareholders than the Company’s new and untested business plan, which seemingly was devised only in response to our offer. We intend to ask Longview shareholders to call on the Company to hold a special shareholder meeting to discuss our proposal and demand that Longview meet with us—and any other potential buyers of Longview—to discuss in good faith any and all offers to acquire Longview. We plan to file appropriate solicitation materials and request that Longview provide us with a complete shareholder list. We believe it is time for the true owners of the company—the shareholders—to have an opportunity to weigh in on the immediate and significant value being offered to them.”

Under Longview’s bylaws the Company is required to hold a special shareholder meeting upon receipt of demands from shareholders representing at least 10 percent of the Company’s outstanding shares.

About Obsidian Finance Group
Obsidian Finance Group, LLC, is a private equity group bringing a multi-disciplinary approach to finding and creating value through solving difficult and complex financial problems. Obsidian typically brings capital as well as creativity in the search for the optimal solution.

About the Campbell Group
The Campbell Group, LLC, is a vertically integrated, full-service timberland investment advisory firm founded in 1981 to acquire and manage timberland for investors. The Campbell Group is one of the largest timber investment managers in the world with more than $2 billion of equity commitments available for additional timberland investments.

SOURCE: Obsidian Finance Group

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