Growing Forests for our Future. - Sierra Pacific Industries · Additional management growth will soon be seen in our Forestry ... Several graders from all over CA came ... Ben Pasquale

Mark Emmerson

In Washington, the purchase of property at Shelton is complete, and we are now removing the old facilities to prepare for new mill construction. We plan to have the new mill running in 2017. With the acquisition of Shelton, we slowed plans for a new sawmill at Frederickson. However we recently acquired about 62,000 acres of timberland near Frederickson to supply timber when that plant is built, and we now own about 280,000 acres of timberland in Washington.

The Anderson co-gen plant is up and running. At 31 Megawatts of output, this is our largest co-generation facility. We are proud that Sierra Pacific produces renewable power that is fueled with wood waste from our sawmills and byproducts from our nearby forests.

Our growth has also brought changes in Sierra Pacific’s management structure. We now have three area managers for sawmills in California, an area manager for sawmills in Washington, and an area manager for millwork and remanufacturing. Additional management growth will soon be seen in our Forestry Division.

You can see by our investments in timberland, production facilities, and crew members that we have a positive outlook on Sierra Pacific’s future. We rely on our crew members to make this a great company to work for, and we appreciate the contributions that each of you make toward Sierra Pacific’s success. We are hoping for a strong fourth quarter this year, followed by continued increases in demand for our products as we begin 2016. We continue to look for opportunities to grow, and offer opportunities for our crew members to advance their careers as we move forward.

Thank you for your efforts to make Sierra Pacific a great company.

Mark

Sierra Pacific Industries has experienced significant growth over the past year, and I thought it would be helpful to let you know about our progress and plans.

As a company, we continue to grow, anticipating that markets for our products will increase with an improving economy. Unfortunately, lumber prices have not held nearly as strong this year as we had hoped. We have not seen drops to the depths of the recession, but 2015’s Random Lengths Composite lumber price average is below that of 2014. The index is a widely-viewed barometer of lumber prices for dimensional framing lumber. Although this year has been somewhat disappointing, we still anticipate that 2016 will be a better year.

Sierra Pacific continues to make investments in timberland, production facilities, and crew members based on our long term view that the economy will gradually improve, and more people will buy homes. We now have about 4,500 crew members who work hard to make sure we remain competitive and operate the most efficient production facilities in the industry.

Windows has seen improvements this year in both volume and price, but like lumber, we had hoped it would be a better year. We expanded our window sales across the country with the acquisition of Hurd, and there are signs of improvement as we move into the last quarter of the year. We are integrating products and processes into one brand – Sierra Pacific Windows – and have begun a marketing campaign for all of our window products. Significant improvements are being made with the addition of new glass and powder coating lines at the Medford facility, and expanding our sales force nationwide. These efforts reflect great optimism about the future of our Windows Division.

Moving Forward

BoardTaLK SUSTainaBLY ManagEd ForESTS

Growing Forests for our Future. Made in the U.S.A!

Third QTr. 2015

2015 wwPa gradE MEETing The SPI Arcata mill hosted the 2015 WWPA Grade Meeting this year. Several graders from all over CA came to the meeting for the grade challenge and education meeting. SPI was fortunate to win in 3 categories; Jim Rydelius (Arcata) won certified grader class, Steve Jacobson (Arcata) won the open class and Non-certified grader class was won by Garrett Stevens. Also, Bert Fackell won the Master Lumberman / QC Supervisor Division.

Steve Jacobson SPI Arcata

Jim RydeliusSPI Arcata

Bert FackellSPI Anderson

Garrett StevensSPI Burney

The Goat Fire in Lassen County, California burned 1,100 acres on SPI timberlands in July, 2000. The fire was started by an illegal campfire that was left unattended. Sierra Pacific salvage logged 4.5 million board feet of timber in October of 2000. After the ground was contour tilled to breakup soil compaction, 300,000 seedlings were planted in May of 2002. Cal Fire installed a sign a couple of years after the burn to promote fire education.

As you can see in the photos, the newly planted forest is prospering with the trees averaging 18 feet tall and 8 inches in diameter. Our foresters take pride in watching the new forest grow.

goaT FirE rESToraTion

Sign being installed in 2004

andErSon CiTY ManagErS ToUr ThE nEw CogEn FaCiLiTY.

L to R: SPI Anderson Plant Manager Shane Young, Anderson Fire Chief Rick Weigele, Anderson City Manager Jeff Kiser, Anderson City Council member Baron Browning, Anderson Assistant City Manager Liz Cottrell, Anderson City Council Member Norma Comnick, Anderson City Police Chief Mike Johnson and SPI Community Relations Manager Mark Lathrop.

What the new forest looks like in 2015

SiErra PaCiFiC windowS roLLS oUT nEw idEnTiTY CaMPaign

Hundreds of “kits” like the one pictured here have been mailed to dealers and our sales

team which contain materials describing our products and what we can do to

meet customer demand.

The Sierra Pacific Window Division has undergone a major image overhaul and has begun a new ad campaign to promote our products. Previously, Sierra Pacific Windows’ only manufacturing plant was in Red Bluff, California. However, with the purchase of Hurd and Superseal in Wisconsin last year, the company named the entire division Sierra Pacific Windows, dropping the Hurd and Superseal brand names.

Along with the rebranding is a new logo (shown here). The pine cone image reflects the fact that we grow the trees that produce the wood used in our

windows. It also demonstrates our commitment to the environment, to our products, and to the roots of Sierra Pacific Industries.

“Our new brand lets buyers know they are not only getting high quality windows, but are also purchasing products produced sustainably” said SP Windows President

Kendall Pierson. “We are proud of the products our crew members

produce on a daily basis at all of our window plants” he added.

Health Benefits Plan

OPEN ENROLLMENTOctober 1, 2015 - November 15, 2015

Plan Year 2016Open Enrollment is the time each year when you can make changes in health coverage for you and your family for the next Plan year. An Open Enrollment brochure will be mailed to the home of each crew member at the end of September. Please read the brochure carefully. There are some changes coming, beginning January 1, 2016.

Since the Affordable Care Act (ACA) passed in 2010 (also known as “Obama Care”) we have been a Grandfathered Plan. This was supposedly an option provided in the ACA but it is virtually impossible to comply with the regulations to maintain Grandfathered status. The reasons are complicated, but the time has come for our Plan to give up our Grandfathered status.

You will be pleased with some of the new features mandated for non-grandfathered plans. For example, beginning January 1, 2016, in-network preventive care will be covered in full, without deductible or coinsurance. Additional details about this and other new features will be in your Open Enrollment brochure.

Unfortunately, some of the mandated benefits are anticipated to be costly. We are concerned about the cost of adding these ACA-mandated benefits. As you may know, our Plan is fully self-funded so our costs, both your premium share and the Company’s share are tied directly to how much the Plan spends. Wise use of health care services can help keep premiums and costs down for everyone.

If you have any questions about coverage for Plan year 2016, please contact the Health Benefits Department at (530) 378-8200.

BEnE-FaCTS FaQ

SiErra PaCiFiC windowS roLLS oUT nEw idEnTiTY CaMPaign

“Welcome to the club! Looking forward to having you around for many more years!”

5 YEar aChiEvEMEnTS

Joeseph Argento QuincyNicholas Bainbridge Burlington SawmillMaranda Balciar Windows MedfordDouglas Barnett Window Sales - WesternJeff Barrett QuincyMathew Brewton QuincyBrendan Burney QuincyJulie Chariton Windows MedfordBobbi Colby Windows MedfordTravis Dyer Burlington SawmillKurt Estes Aberdeen SawmillAsaf Garcia Burlington SawmillJordan Goodman QuincyRamon Hernandez Burlington SawmillDaniel Jones TruckingDan Kitchel Centralia SawmillBill LaMar QuincyBrian Lindstrand ForestryJames Lococo LincolnPatrick Malloy TruckingJason Mann QuincyWendy Miller Windows MedfordBj Morris QuincyJennifer Moxley QuincyJohn Peay TruckingRobert Phillips Burlington SawmillTroy Plang Aberdeen SawmillCory Sather QuincyMichael Schneider Windows MedfordCorey Sei QuincyDaniel Shelby Anderson Fab ShopJessie Smith Red Bluff MillworkPhyllis Stevens Aberdeen SawmillGreg Stewart TruckingRyan Svensson QuincyBuddy Thomas Windows Red BluffRyan Verboomen Aberdeen SawmillNick Weeks Anderson Sawmill

40 Years!Cathy Chariton Windows MedfordBen Grant QuincyDave McClelland Shasta Lake 35 Years!Pamela Chariton Windows MedfordJerry Clark Shasta LakeKansas Elliott Anderson PolesEddie Erickson BurneyJohn Fingleton Richfield MillworkRichard Hanson Windows MedfordByron Mallo Windows MedfordJerry Mosier Sales & ServiceDan Quarton Lincoln

30 Years! Jim Bartley ArcataKenny Brown ArcataKen Cooper Chinese CampJohn Jenkins Anderson SawmillJanet Jennings Workers’ CompKelly Ross Red Bluff MillworkGreg Sinclair Sales & ServiceKathleen Tonelli Red Bluff Millwork

25 Years! Anthony Azevedo III Red Bluff MillworkJaime Chihuahua Red Bluff MillworkRichard Coe LincolnLuis Escalante OrovilleJeff Fasiano Anderson Fab ShopJennifer Floyd Richfield MillworkJack Hogan Jr Red Bluff MillworkJason Lynch Windows MedfordJeff Martinez Anderson SawmillNancy Rebello Shasta LakeBill Richmond Red Bluff MillworkJudith Riemer Windows MedfordPaul Sadlier Red Bluff MillworkBob Taylor Windows Red BluffDave Wolfe QuincyDaniel Woodruff Lincoln

20 Years! Kevin Caldwell LincolnTyrone Griffin LincolnMarni Harmon Windows MerrillFrancisco Hernandez Chinese CampBarbara Jay Window Sales - IrvineSteven Jones Richfield RemanGlen Lick QuincyDan Marks BurneyDaran Murphy QuincyJesus Oropeza QuincyBen Pasquale III Richfield MillworkKathy Pinnell Workers’ CompClinton Scarbrough Richfield MillworkKris Sousek-Schwartz Windows MedfordCharles Tilman Shasta Lake

Philip Tripp Window Sales - OregonScott Williams Windows MerrillScott Woodard Sr Burney

15 Years! Mike Aronson ForestryRosie Azevedo Red Bluff MillworkZac Baptiste TruckingCindy Bidwell BurneyTerry Bruns Window Sales - ArizonaDan Cabitto Anderson SawmillMilt Fernandes TruckingClement Haring Windows MerrillMike Hawkins BurneyLuis Herrejon LincolnRachael Lotze Windows Red BluffTina Luedtke Windows MerrillMaria Mendoza Windows Red BluffRandy Mills LincolnDelores Monti Windows MedfordRicardo Moreno Windows Red BluffPhil Myers Red Bluff MillworkRichard Myers Red Bluff MillworkJason Oliver Chinese CampJorge Partida Windows Red BluffCarlos Pasillas Windows Red BluffZack Peterson Red Bluff MillworkA.J. Petros TruckingJeremy Powers Windows Red BluffNathan Prewitt Red Bluff MillworkKen Rewerts Sales & ServiceLuis Reyes Windows Red BluffElisa Sanchez Windows Red BluffSherrie Slagle OrovilleKen Smith Chinese CampDanny Tulgetske OrovilleDana Whipple Anderson SawmillWilliam Williams Lincoln

10 Years! Craig Andersen Shasta LakeSteve Bates TruckingSergio Bustos Moreno Windows Red BluffErnesto Castorena Chinese CampJoseph Cherry Window Sales - Rocky MtnTed Coshow Richfield MillworkDavid Cudia QuincyTheodore Dahl Windows MedfordSheena Delgado Window Sales - Central CaliforLance Dodd Windows Red BluffJoe Fruguglietti TruckingGeno Gallegos Window Sales - Rocky MtnJuro Glavas Window Sales - ArizonaRick Gonzales Aberdeen SawmillJason Hale TruckingJustin Harley QuincyShawn Harris TruckingCharles Horan Jr. LincolnJeff Jones TruckingKenneth Jones TruckingDale Keith Windows Red Bluff

Thank you for your continued support. Glad to have you as part of our SPI family!

Mike Lommori ForestryJuan Lopez LincolnJosh Mangold Anderson SawmillFrancisco Manzo Chinese CampPaul Martin KeystoneRamiro Martinez LincolnDerrick McBride Aberdeen SawmillJulio Rodriguez-Orozco Richfield MillworkAntone Rose LincolnLynn Russell Anderson SawmillStacey Sanders Aberdeen SawmillChris Skinner QuincyDave Stewart TruckingJon Tucker Shasta LakePolo Valdez Richfield MillworkSalvador Valencia Richfield MillworkSabino Valerio-Martinez Richfield MillworkGonzalo Vargas LincolnIsaias Villalobos LincolnCortney Weeks Window Sales - San DiegoCiara Westrich Windows MedfordRudy Zoellick Windows Medford

CongraTULaTionS!

rETirEESJohn Bell, has left his Sprinklerman position after 34 years at Quincy. He plans to do lots of tournament fishing, spending time with his dog and doing a few honey-dos. Good luck on the fishing, John!

Jim Blair, retired from his Filer position after 28 years at the Anderson sawmill. He and his wife plan a trip to visit their granddaughter and bring her the custom made fort he plans to build for her. As a handyman, he has lots of projects to keep him busy. He is also certain that his wife will have many more where those came from. Take it easy, Jim!

Mike Czerniak, plans to stay plenty busy after retiring from his Customer Service Manager position after 15 years at Windows in Medford. He’ll become one with nature by hunting, fishing, biking and assisting with his family’s maple syrup business. Cross country skiing, teaching hunter safety and cooking are just a few other hobbies he looks forward to. One busy guy, Mike!

Tim Feller, retired from his Timber Manager of the Tahoe District after 37 years with SPI. He has plenty of things to occupy his time like guitar and piano and attending musical concerts. He wants to learn how to surf and attend more major sports events. Also some new toys, too numerous to mention, are in order. He thanks everyone he’s worked with for the great opportunity. Congratulations Tim, we will miss you!

Sharon gonczeruk, after working for 28 years with SPI, has retired from her Bander Tally position at Richfield Millwork. She plans to do whatever she want, when she wants. And of course sleeping in past 4:30 am will be her main priority. Sounds reasonable to us, Sharon!

Stephen harper, retired from his Loader Operator position after almost 20 years with SPI. He is looking forward to a long visit with his wife’s family in Idaho. When he returns, he says he will be answering to his new boss (wife) and get to work on his long honey-do list. Don’t let her work you too hard, Stephen!

Jim hendricks, has retired from his Forklift Operator position in Aberdeen after 37 years with the company. Jim plans on lots of traveling to places like California, Montana, Idaho and Utah. He has a few Honey-dos but will work in plenty of relaxation along the way. We wish you a happy retirement, Jim!

Mark hoffman, recently retired from his Project Manager position in Medford after 14 years in the window business. He has home projects and hunting cabin projects to work on. He enjoys restoring antique wooden boats and is contemplating another one. A little winemaking, woodworking and bicycling are also in order. Ok Mark, remember it’s time to just relax and enjoy yourself!

denise Jensenwill enjoy her retirement after 10 years as the Human Resources Coordinator in Aberdeen. She will spend more time with her already retired husband. Visiting grandkids in Montana, riding her horse and bike, and walking her dogs are also in order. Sounds like the best time, Denise!

Feliciano Jimenez, has been with SPI for 12 years and was a Machine Operator at Windows in Red Bluff. He plans to move back to Mexico where he has purchased land. His plan is to kick back and do some fishing. Have a great time, Feliciano!

david Lauderdale, after 13 years at Red Bluff Millwork, retires from his Endwork Operator position. He plans to move to Oregon where fishing, metal detecting and gardening will keep him busy. Hope you find lots of treasures, David!

anthony Leal, has left the Lincoln mill after 15 years as a Millwright. He says there are no major plans at the moment. He does plan to work on his 65’ Chevy Stepside. A few projects around the house will also keep him busy. Enjoy your retirement, Anthony!

randy Lilburn, retired from his Washington Area Manager position after 35 plus years with SPI. He looks forward to his favorite hobby of building muscle cars. He will accomplish this in his brand new shop. Traveling, hunting and fishing are all on his relaxation list. Have a great time, Randy, and we want to see the end results of your project cars!

harland, “Jim” Marks, retired from his Trimmer Operator position after 35 years at Burney. Jim plans on spending time on his self-inflicted honey-do list. Then plenty of fishing and time with the grandkids are next on the agenda. Savor your retirement, Jim!

Steve Merrick, retired from his Electrician position after 30 years at Quincy. Steve didn’t offer much about his plans other than to say he will be catching up on his work at home. Don’t work too hard, Steve!

Mark Starski, has retired from his Millwright position in Oroville after spending 9 years with SPI. He plans to spend quality time with his wife and 8 grandchildren. He has lots of projects around the house so he will be busy. Have fun, Mark!

david white, has left his Certified Grader position in Arcata after 36 years with the Company. He plans to take a train trip and travel all over the country. He will spend more time at his summer home and do lots of salmon fishing from his boat. Grandkid time will also be at the top of the list. Save a few salmon for us, David!

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BoardTaLK in ThiS iSSUE:• SPW New Identity Launch• Open Enrollment 2015

SPECiaLTY TranSPorT MagazinE TrUCK oF ThE wEEK2004 PETErBiLT 378Joe Church is proud to be a log trucker - and rightly so. Not only does he drive a 2004 Peterbilt for Sierra Pacific Industries, but logging and log hauling is part of his family history. Joe has been hauling logs for Sierra Pacific for seven seasons, four of those out of the Arcata division.

Joe is a fourth-generation timberman, following his father Rodney, grandfather and great-grandfather, all of whom operated log trucks. “My dad worked for Sierra Pacific when I was a kid, and now I work there, and my son works there at the same time – it’s pretty wild that we’ve had three generations working for Sierra Pacific.”

Cleaning and polishing his truck is his Sunday ritual. “I go down every Sunday morning and wash my truck – I do everything from inside frame rails, rear end housings, and the motor with a wash mitt,” Joe says. “Everyone teases me that my truck never looks dirty. My dad taught me that if you don’t touch the dirt, it won’t touch you. It winds everyone up that I go to work in a white shirt and light colored pants, and I come home as clean as when I went to work. My truck is the same way. “I like to keep my truck picture-ready.” You never know who is going to break out their camera. Nice job, Joe, and thanks for having so much pride in your ride!