THE ANTHONY FOREST PRODUCTS STORY

Anthony Forest Products Company, headquartered in El Dorado, has made some dramatic changes to position itself for the 21st Century. This vision could not have been accomplished without the generations of forest products experience passed down through the family.

AFP is a completely integrated forest products company incorporated in 1965, and begun in 1916. The company owns approximately 86,000 acres of timberland in Arkansas, Louisiana, and Texas, and operates southern pine lumber producing mills in Urbana, Arkansas and Atlanta, Texas; and wood chip mills in Plain Dealing, Louisiana, and Troup, Texas. The company also operates an engineered wood laminating plant in El Dorado a laminating plant in Washington, Georgia and a new joint venture I-Joist plant, Anthony-Domtar, Inc., in Sault Ste. Marie, Ontario, Canada.

The company has applied its policy of environmental protection to its timberlands through adherence to the Best Management Practices (BMP) and the Sustainable Forestry Initiative (SFI). Our land managers have received extensive training in the protection of threatened and endangered species which may be encountered on the lands. We are committed to being a prudent steward of our lands through the next century. The company leases most of its timberlands to individuals and groups for recreational pursuits. Beyond lease income, the involvement of local communities improves wildlife management and general protection.

The company's sawmills and El Dorado laminating plant have undergone massive modernization phases over the past five years. The sawmills are now producing 30% more lumber out of the same logs milled five years ago due to complete computer optimization.

Not only have our sawmills diversified with changing markets, our laminating plants have diversified and expanded to meet customer demands nationally and internationally. Both solid lumber from our sawmills and laminated products are reaching global customers. Some of the company's fastest growth has been in the engineered wood products sector. The demand for engineered wood products like glulam and I-Joist forced us to totally modernize the El Dorado facility, add a new plant in Washington, Georgia and a new I-Joist plant in Canada.

Our ever-expanding line of engineered wood products has lead to the evolution of two companies. In the late 1990s, Anthony Log Homes was created for the sale and marketing of the Power Log?, engineered logs for log home construction. Second, the company joined forces with Domtar Inc. of Montreal, Quebec, Canada in 2001 to produce the Power Joist?. The Power Joist is a high quality solid sawn lumber flange I-joist. For the I-joist production, Domtar has contributed its effective mill management expertise and a reliable supply of machine stress rated (MSR) lumber. Anthony Forest has contributed its superior customer service infrastructure, engineered wood products knowledge and distribution network to meet demands for an I-joist to complement the Power Beam? I-joist compatible glulam.

When the company grows, the community around us also grows. We encourage our employees to be active in the community and we support their efforts. In Union County, Arkansas we employee over 180 persons and with the company's annual payroll, contribute more than $7 million to the local economy each year. We plan to continue to increase our economic and personal contributions to our communities each year. One very successful contribution to the community has been the WorkPlace Literacy Program started company-wide. The company feels with changing demographics and international markets, this will only assist in the overall company growth and prosperity in the communities where we reside.