In 2001, TimberWest undertook a strategic review of the Company's assets and core competencies in the context of the industry in which it operates. This review resulted in the vision of "Growing greatest value through Operations Excellence" and a focus on enhancing the performance of the Company's existing business units.

The Company implemented a number of initiatives over the past five years that culminated with the transformation of TimberWest's logging activities to a contractor model at the beginning of fiscal 2005. This transformation was a natural progression of the Company's Operations Excellence strategy, as it has provided increased flexibility, a reduced cost base and an operating structure more closely aligned with industry norms in the rest of North America.

Going forward, TimberWest will continue the transition to a pure play timberland management company. The Company's future focus will be on core timberland management functions including timber inventory, strategic silviculture investments, harvest planning, and the marketing and sales of timber products and real estate.

This change is expected to improve the Company's competitiveness over the long term.

Neighbours

2005 Annual Report