KLAMATH FALLS, Ore., Feb. 27 /PRNewswire/ -- Inland Fiber Group, LLC and
Fiber Finance Corp. (collectively, the "Company") announced today that it
reached a tentative agreement with the trustee for the company's $225.0
million 9-5/8% Senior Notes due 2007 to resolve the outstanding disputes among
the parties.  Under the terms of the tentative agreement, the Company or its
nominee would purchase all of the outstanding notes at a price of 69% of the
principal amount of the notes through a pre-negotiated plan of reorganization.
The settlement would include the alleged existing defaults, the termination of
all pending litigation and a release of all the parties.  Completion of the
contemplated settlement is subject to a number of conditions, including the
commitment to support a pre-negotiated plan of reorganization to effectuate
the settlement by a sufficient number of noteholders and holders of a
sufficient face value of notes to be acceptable to the Company, and the
receipt by the Company of financing sufficient to fund the settlement. The
Company has agreements in principle for the financing, which are subject to
the negotiation and execution of definitive documentation and confirmatory due
diligence. The Company expects to finalize its financing arrangements within
the next several weeks.  The contemplated settlement is the result of
negotiations between the Company and the trustee.

    Inland Fiber Group, LLC. owns 167,000 fee acres of timberland and cutting
rights on 68,000 acres of timberland containing total merchantable timber
volume estimated to be approximately 0.4 billion board feet in Oregon and
Washington, east of the Cascade Range.  Inland Fiber specializes in the
growing of trees, the sale of logs and standing timber and the sale of
timberlands.  Logs harvested from the timberlands are sold to unaffiliated
domestic conversion facilities.  These logs are processed for sale as lumber,
molding products, doors, millwork, commodity, specialty and overlaid plywood
products, laminated veneer lumber, engineered wood I-beams, particleboard,
hardboard, paper and other wood products.  These products are used in
residential, commercial and industrial construction, home remodeling and
repair and general industrial applications as well as a variety of paper
products. Inland Fiber also owns and operates its own seed orchard and
produces approximately five million conifer seedlings annually from its
nursery, approximately half of which are used for its own internal
reforestation programs, with the balance sold to other forest products
companies.

    Certain information discussed in this press release may constitute
forward-looking statements within the meaning of the Federal securities laws.
Although Inland Fiber believes that expectations reflected in such forward-
looking statements are based upon reasonable assumptions, it can give no
assurance that its expectations will be achieved.  Forward-looking information
is subject to certain risks, trends, and uncertainties that could cause actual
results to differ materially from those projected.  Such risks, trends and
uncertainties include the highly cyclical nature of the forest products
industry, economic conditions in export markets, the possibility that timber
supply could increase if governmental, environmental or endangered species
policies change, and limitations on Inland Fiber's ability to harvest its
timber due to adverse natural conditions or increased governmental
restrictions.  For a more complete description of factors, which could impact
Inland Fiber and the statements contained herein, reference should be made to
Inland Fiber's filings with the United States Securities and Exchange
Commission.

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