August 2nd 2008

The Eureka Reporter
August 2, 2008

In statement released this week, Estelle Fennell commented on the events this week of Mendocino Redwood Co. and Marathon Structured Finance Fund assuming control of the Pacific Lumber Co.

"I am pleased to mark this historic day by congratulating the Humboldt Redwood Co. on its success," Fennell stated. "As of today, 210,000 acres of important resource lands -- many of which are in the 2nd District -- are no longer being managed by a bankrupt company, and the focus has now turned to sustainable management."

Fennell noted that the transition is "an immense task."

She stated she spoke with company President Mike Jani this week, who expressed his enthusiasm in rising to the challenge.

Fennell indicated Jani said his No. 1 priority is making sure that employees' needs are met and their questions answered. At the same time a company forester was inspecting harvest plans currently in the works with the goal of re-marking trees that will no longer be cut in accordance with HRC's goal of sustainable forest stewardship.

"After decades of legal wrangling and high-stakes brinksmanship, this once-proud company can concentrate now on good forestry and bring a sense of stability to both the economy of the district and the lives of its hard-working employees."