Contact:	Tom Ringo
	VP & CFO
	360.697.6626
	Fax 360.697.1156 Nasdaq:POPEZ

NEWS RELEASE

FOR IMMEDIATE RELEASE

April 27, 2006

POPE RESOURCES REPORTS FIRST QUARTER NET INCOME OF $5.3 MILLION

Pope Resources (Nasdaq:POPEZ) reported net income of $5.3 million, or $1.11 per diluted ownership unit, on revenues of $16.1 million for the first quarter ended March 31, 2006. This compares to net income of $4.6 million, or 97 cents per diluted ownership unit, on revenues of $16.7 million for the comparable period in 2005.

Earnings before interest, taxes, depreciation, depletion, and amortization (EBITDDA) were $8.8 million for the current quarter versus $9.6 million for the comparable period in 2005.

“We enjoyed strong bottom-line results for the first quarter of 2006, reflecting a tight market for logs and disposition fees generated from our timberland management client,” said David L. Nunes, President and CEO.

Operating income generated by our Fee Timber segment increased to $6.2 million from $5.0 million in 2005, due to a 5% increase in average realized log prices and a decrease in depletion expense. Harvest volume for the first quarter of 2006 was 22 million board feet (MMBF) compared to 23 MMBF for the comparable quarter in 2005, consistent with our lower planned 2006 annual harvest of 58 MMBF compared to 2005’s total of 74 MMBF. The impact from these lower harvest volumes was offset by the higher log prices, which improved from $580 per thousand board feet (MBF) in 2005 to $608/MBF in 2006. As with other years in which snow limited access to many of our competitors’ lands during the winter, we took advantage of our year-round road system on the Hood Canal tree farm and chose to front-load our annual harvest volume to capture favorable log pricing. First quarter harvest volume represents 38% of our total planned harvest for 2006.

The decrease in current quarter depletion expense figured prominently in the improved operating income results for the Fee Timber segment, driven by lower harvest volume coming from a 2004 timberland acquisition which had a separate depletion cost pool that results in a high per-unit depletion expense when this timber is harvested. Operating results in 2006 contained a lower proportion of harvest volume from these high-depletion rate lands than was the case in 2005. Out of a planned 58 MMBF harvest for 2006, we expect approximately 7 MMBF of this total to come from the separate depletion pool.

Our Timberland Management & Consulting segment posted operating income of $1.3 million in the current quarter compared to $842,000 in first quarter 2005, resulting largely from nonrecurring disposition fees that will also translate to reduced management fee revenue for future quarters.

Based on $1 million of lower property sales revenues in the current quarter, our Real Estate segment generated an operating loss of $339,000 compared to operating income of $635,000 in 2005. We are currently expecting several Real Estate closings in 2006, including the first sales from both our Gig Harbor and Bremerton projects, which are anticipated to increase Real Estate’s operating income for the year above the prior year’s results.

About Pope Resources

Pope Resources, a publicly traded limited partnership, and its subsidiaries Olympic Resource Management and Olympic Property Group, own or manage nearly 410,000 acres of timberland and development property in Washington and Oregon. In addition, we provide forestry consulting and timberland investment management services to third-party owners and managers of timberland in Washington, Oregon, and California. The company and its predecessor companies have owned and managed timberlands and development properties for more than 150 years. Additional information on the company can be found at

www.poperesources.com. The contents of our website are not incorporated into this release or into our filings with the Securities and Exchange Commission.

This press release contains a number of projections and statements about our expected financial condition, operating results, business plans and objectives. These statements reflect management's estimates based on current goals and its expectations about future developments. Because these statements describe our goals, objectives, and anticipated performance, they are inherently uncertain, and some or all of these statements may not come to pass. Accordingly, they should not be interpreted as promises of future management actions or financial performance. Our future actions and actual performance will vary from current expectations and under various circumstances the results of these variations may be material and adverse. Some of the factors that may cause actual operating results and financial condition to fall short of expectations include factors that affect our ability to anticipate and respond adequately to fluctuations in the market prices for our products; environmental and land use regulations that limit our ability to harvest timber and develop property; labor, equipment and transportation costs that affect our net income; our ability to discover and to accurately estimate liabilities associated with our properties; and economic conditions that affect consumer demand for our products and the prices we receive for them. Other factors are set forth in that part of our Annual Report on Form 10-K entitled "Risk Factors." Other issues that may have an adverse and material impact on our business, operating results, and financial condition include those risks and uncertainties discussed in our other filings with the Securities and Exchange Commission. Forward-looking statements in this release are made only as of the date shown above, and we cannot undertake to update these statements.

Management considers earnings (net income or loss) before interest expense, income taxes, depreciation, depletion and amortization (EBITDDA) to be an important measure of operating profitability, particularly when comparing results between different timber-owning companies because there are varying methods of calculating depletion expense under GAAP. With different issuers employing various calculation methodologies, disclosure of EBITDDA can make it easier for the reader to make meaningful comparisons between the operating results and cash-generating capabilities of different timber companies.

Pope Resources, A Delaware Limited Partnership
Unaudited
CONSOLIDATED STATEMENTS OF OPERATING DATA
(all amounts in $000's, except per unit amounts)
	Three months ended March 31,
	2006			2005
Revenues	$	16,083		$	16,656
Costs and expenses:
Cost of sales		(6,425	)		(7,804	)
Operating expenses		(3,478	)		(3,181	)
Interest, net		(309	)		(717	)
Cascade investment income		5
Total expenses		(10,207	)		(11,702	)
Income before income taxes and minority interest		5,876			4,954
Income tax expense		(445	)		(247	)
Income before minority interest		5,431			4,707
Minority interest		(133	)		(101	)
Net income	$	5,298		$	4,606
Weighted average units outstanding - Basic (000's)		4,635			4,561
Weighted average units outstanding - Diluted (000's)		4,754			4,730
Basic net income per unit	$	1.14		$	1.01
Diluted net income per unit	$	1.11		$	0.97
		CONSOLIDATED BALANCE SHEET DATA
		(all amounts in $000's)
		March 31,
		2006			2005
Assets:
Cash and short-term investments	$	18,682		$	4,472
Other current assets		7,232			3,802
Roads and timber		50,721			61,023
Properties and equipment		29,206			26,604
Other assets		600			1,112
Total	$	106,441		$	97,013
Liabilities and partners' capital:
Current liabilities	$	4,675		$	4,946
Long-term debt, excluding current portion		30,741			32,504
Other long-term liabilities		193			211
Total liabilities		35,609			37,661
Partners' capital		70,832			59,352
Total	$	106,441		$	97,013

RECONCILIATION BETWEEN NET INCOME AND EBITDDA
(all amounts in $000's)
	Three months ended
	31-Mar-06			31-Mar-05			31-Dec-05
Net income	$	5,298		$	4,606		$	872
Added back:
Interest, net		309			717			539
Depletion		2,573			3,843			922
Depreciation and amortization		184			152			159
Income tax expense		445			247			435
EBITDDA	$	8,809		$	9,565		$	2,927
RECONCILIATION BETWEEN CASH FROM OPERATIONS AND EBITDDA
(all amounts in $000's)
		Three months ended
		31-Mar-06			31-Mar-05			31-Dec-05
Cash from operations	$	4,697		$	6,893		$	6,656
Added back:
Change in working capital		3,768			1,994			-
Interest		309			717			539
Income tax expense		445			247			435
Less:
Change in working capital		-			-			(4,456	)
Deferred profit		(275	)		(152	)		(81	)
Cost of land sold		(13	)		(134	)		(90	)
Unit compensation		(122	)		-			(76	)
EBITDDA	$	8,809		$	9,565		$	2,927
		SEGMENT INFORMATION
		(all amounts in $000's)
		Three months ended
		31-Mar-06			31-Mar-05			31-Dec-05
Revenues:
Fee Timber	$	13,724		$	13,663		$	5,194
Timberland Management & Consulting (TM&C)		2,024			1,614			2,641
Real Estate		335			1,379			1,072
Total		16,083			16,656			8,907
EBITDDA:
Fee Timber		8,876			8,911			2,544
TM&C		1,307			863			1,508
Real Estate		(305	)		671			(10	)
General & administrative		(1,069	)		(880	)		(1,115	)
Total		8,809			9,565			2,927
Depreciation, depletion and amortization:
Fee Timber		2,644			3,869			950
TM&C		16			21			23
Real Estate		34			36			43
General & administrative		63			69			65
Total		2,757			3,995			1,081
Operating income (loss):
Fee Timber		6,232			5,042			1,594
TM&C		1,291			842			1,485
Real Estate		(339	)		635			(53	)
General & administrative		(1,004	)		(848	)		(1,134	)
Total	$	6,180		$	5,671		$	1,892

	SELECTED STATISTICS
	Three months ended
	31-Mar-06			31-Mar-05			31-Dec-05
Log sale volumes (thousand board feet):
Export conifer		347			2,756			952
Domestic conifer		18,449			16,103			5,373
Pulp conifer		2,675			2,653			1,338
Hardwoods		562			1,488			677
Total		22,033			23,000			8,340
		Three months ended
		31-Mar-06			31-Mar-05			31-Dec-05
Average price realizations (per thousand board feet):
Export conifer	$	716		$	661		$	641
Domestic conifer		658			590			620
Pulp conifer		251			219			223
Hardwoods		598			627			561
Overall		608			580			554
Owned timber acres		114,513			115,103			117,000
Acres under management		291,925			527,316			439,000
Capital expenditures ($000's)					948			4,132
Depletion ($000's)		2,573			3,843			922
Depreciation and amortization ($000's)		184			152			159
Debt to total capitalization		31	%		36	%		34	%

	QUARTER TO QUARTER COMPARISONS
	(Amounts in $000's)
	Q1 2006 vs. Q1 2005			Q1 2006 vs. Q4 2005
	Total			Total
Net income:
1st Quarter 2006	$	5,298		$	5,298
4th Quarter 2005					872
1st Quarter 2005		4,606
Variance	$	692		$	4,426
Detail of earnings variance:
Fee Timber:
Log price realizations (A)	$	617		$	1,190
Log volumes (B)		(561	)		7,586
Production costs		(148	)		(2,191	)
Depletion		1,270			(1,651	)
Other Fee Timber		11			(296	)
Timberland Management & Consulting:
Management fee changes		(738	)		(357	)
Disposition fees		1,343			(45	)
Other Timberland Mgmnt & Consulting		(156	)		208
Real Estate:
Land sales		(808	)		(560	)
Other		(166	)		273
General & administrative costs		(156	)		130
Interest expense		208			196
Other (taxes, minority int., interest inc.)		(24	)		(57	)
Total change in net income	$	692		$	4,426

(A)	Price variance calculated by applying the change in price to current period volume.
(B)	Volume variance calculated by applying the change in sales volume to the average log sales price for the prior period.