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APPENDIX I. COMPARATIVE PORTFOLIO INVESTMENT ALTERNATIVES

The purpose of the following chart is to display general relationships among typical Tennessee woodland investments. No interpretation should be made other than to see, from a very broad perspective, how one stand investment might compare with alternative strategies. The definitions provided should only be interpreted in the broadest sense, and will not be true in all instances statewide. Woodland owners should always discuss their options with trained professional foresters before making a final decision regarding investment strategies.

STAND TYPE TIME COST RETURN RISK

International Upland Hardwood V. Long Low V. High Low

Domestic Upland Hardwood V. Long Low Medium Low1

Low Quality Upland Hardwood Long Low Low Low

Pine Pulpwood Short Medium High Medium

Upland Yellow Pine Sawtimber Medium Medium High Medium

Bottomland Loblolly Pine Sawtimber Medium Medium V. High Medium

International Bottomland Hardwood V. Long low V. High Medium

Domestic Bottomland Hardwood V. Long Low High Medium

Low Quality Bottomland Hardwood Medium Low Low Medium

International Cove Hardwood V. Long Low V. High Low

White Pine Sawtimber Medium Medium High Medium

Hardwood Plantations Long High Low High

Paulownia Specialty Short High V. High V High

Walnut Specialty Medium High V. High High

Xmas Trees Specialty V. Short V. High V. High V High

Streamside Management Zones DNA DNA DNA Medium

Green Stands DNA DNA DNA Medium

TIME: The approximate relative term, or length, of the investment, defined as: Very Short = less than 10 years, Short = 20 years or less, Medium = 20-40 years, Long = 40 - 60 years, and Very Long 60+ years.

COST: Relative estimated costs/acre of expenses associated with the investment, defined as: Low = less than $50.00, Medium = $50 - $150, High = $150.00 plus annual costs for a few years, Very High = $150.00 plus annual expenses for several years or perhaps throughout the term of the investment.

RETURN: Estimated relative annual returns on investments as a function of actual costs for average Tennessee conditions including growth and income defined as: Low = less than 6%, Medium = 6%-10%, High = 10%-15%, Very High 15%+.

RISK: Relative estimated investment risks for average Tennessee conditions.

DNA: Does Not Apply.

APPENDIX II. STAND PROSPECTUSES

Most investors have at least seen a mutual fund prospectus. The purpose of a prospectus is to allow investors to review detailed information about a particular mutual fund prior to them actually putting any money into it. A prospectus may or may not have been reviewed or passed by the Securities and Exchange Commission. However, they normally include very pertinent information including the manager's investment strategy, limitations, annual costs, and historic returns on investments over the short and long term.

As previously discussed, if we think about stands of timber along much the same lines as a mutual fund, then it would seem to be helpful for woodland owners to have the opportunity to review a prospectus for each of their woodland investment options. Timber investments are clearly not regulated by the Securities and Exchange Commission. Never the less, a prospectus for a timber stand only serves to provide woodland owners a simple, logical analysis of timber management alternatives.

The following provides a prospectus for each Stand Type listed in Appendix III, Comparative Portfolio Investment Alternatives. Again, these apply to general conditions across Tennessee as a whole, and may not be accurate for individual tracts. Woodland owners should always discuss their opportunities and risks with an experienced professional forester familiar with local conditions before they initiate any timber management investments.