Rayonier, Inc. Distribution

If you owned ITT Corporation shares on February 28, 1994 you would have received one share of Rayonier, Inc. common stock for every four shares of ITT Corporation stock held.

If a holder held ITT Corporation common stock, the new tax basis for such stock would be 91.6135% of the pre-existing basis for such stock and the new tax basis for Rayonier, Inc. would be 8.3865%.

To illustrate, if a holder held 100 shares of ITT Corporation common stock with an aggregate tax basis of $8,000, he would receive a distribution of 25 shares of Rayonier stock. After the distribution, his new tax basis in his ITT Corporation common stock would be $7,329.08 (that is, 91.6135% x $8,000) and his new tax basis in the Rayonier stock would be $6,70.92 (that is, 8.3865% x $8,000).