Deltic Timber Corporation Annual Meeting – April 27, 2006

Forward-Looking Statements This presentation contains forward-looking statements. Such statements can be identified by the use of words such as “believes”, “expects”, “may”, “will”, “should”, “plans”, “intends”, “estimates”, or “anticipates”, and other comparable terminology. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those described in the forward-looking statements. These factors are discussed in greater detail in the Company’s Form 10-K as filed with the Securities Exchange Commission.

Enterprise Value Dollar (millions) March 31, 1997 March 31, 2006 Market capitalization plus long-term debt, less cash and cash equivalents 132% increase

Deltic Timber Share Price (NYSE – DEL) 01/02/97 12/31/98 12/31/00 12/31/02 12/31/04 3/31/06 $65.00 $55.00 $45.00 $35.00 $25.00 $15.00

Shareholder Return (1/1/1997 – 3/31/2006) 350% 300% 250% 200% 150% 100% 50% 0% Dividends reinvested S&P 500 DEL S&P 500 Paper & Forest Products Russell 2000

Value of Land and Timber Ownership Consistent earnings and cash flows Integration with sawmills Higher and better use potential Hunting lease and oil & gas income

Timberland Ownership Acres (thousands) January 1, 1997December 31, % increase

Timberland Profile December 31, ,700 Acres Pine plantations 156,200 Hardwood forest 23,500 Other 41,900 Pine Forest 216,100

Tons (millions) Pine Sawtimber Inventory

Potential Higher and Better Use Lands Comparable Sales Deltic SalesDeltic Timberland (Approx. 58,000 acres) Chenal Valley

- Dollars (thousands) ,500 2,000 1,500 1, Hunting Lease and Oil & Gas Income 54% Increase

0-5,000 5,000-10,000 10,000-15,000 15,000-20,000 >20,000 Surface Acres Owned: Deltic Timberlands Near the Fayetteville Shale Area Generalized Boundary of Fayetteville Shale Play

Operating Income Net Sales Dollars (millions) Woodlands Segment Net Sales and Operating Income

Value of Manufacturing Operations Value added to timberland ownership Logs must be converted into lumber Hedge against lower stumpage prices Generally provides positive cash flow

Source: Random Lengths $ per MBF Q99 1Q00 1Q01 1Q02 1Q03 1Q04 1Q05 1Q06 Composite Lumber Price Composite lumber price Trend line Six-year average manufacturing cost of comparable mills

Dollars per ton Average Log Cost 18% increase

Mill Modernization Projects (2003 – 2005) Ola Mill ($6.5 million) J-hook sorter system Unscrambler & trimmer Trimmer optimizer Planermill tilt hoist Automated grading system Sawmill breakdown modification Waldo Mill ($12.4 million) J-hook sorter system Curve-sawing gang Third boiler Upgrade kilns Automated grading system Step feeder

Board Feet per Hour 40,000 36,000 32,000 28,000 24, E Hourly Production Rate 29% Increase 44% increase

Million Board Feet E Annual Lumber Production 53% Increase

Tons per MBF E Lumber Recovery Ratio (Tons of Logs Used to Produce each MBF of Lumber)

Operating Income Net Sales Dollars (millions) Mills Segment Net Sales and Operating Income

Prime example of higher and better use land Natural diversification for a timber company Consistently generates income Attracts a broader class of shareholders Value of Real Estate Development

7.50% 7.00% 6.50% 6.00% 5.50% 5.00% Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Dec E Source: Freddie Mac and National Association of Realtors Mortgage Interest Rates 30-Year Fixed Rate Mortgage Trend line Mortgage interest rate

Units (millions) E Source: U.S. Bureau of the Census (Construction Reports) and National Association of Realtors U.S. Housing Starts

Lots E Residential Lot Sales

Dollars E 100,000 90,000 80,000 70,000 60,000 Residential Lot Prices (Average per lot)

Acres E Commercial Acreage Sales

Dollars (thousands) 1, E Commercial Acreage Prices (Average per Acre)

Chenal Valley Development * Approximate Residential 4,500 Lots* Commercial 750 Acres* Sold Developed/Unsold Undeveloped , (December 31, 2005)

Chenal Valley Little Rock, Arkansas GMAC RED Development Site Existing Commercial Village at Rahling Road Bank Site Future Commercial RED Development Area Future Commercial (125 Acres) Promenade At Chenal Village At Rahling Road Bank Site (15 Acres)

Real Estate Segment Net Sales and Operating Income Operating Income Dollars (millions) Net Sales

Del-Tin Fiber Financial Performance Operating Results Cash Flow Dollars (millions) (4) (12) (20)

Consolidated Net Sales Dollars (millions) % increase5.3% increase19% increase

Dollars (millions) (5) 2002* * Excludes write-off of Deltic’s investment in Del-Tin Fiber of $11.4 million net of income tax impact Consolidated Net Income 35% increase31% increase

Dollars (millions) Cash Flow versus Capital Expenditures Cash Flow Capital Expenditures

2006 Budget Woodlands 18% Mills 22% Real Estate 59% Corporate 1%

Dollars (millions) /31/200212/31/200312/31/200412/31/2005 3/31/2006 Long-Term Debt $29.4 million decrease $11.2 million decrease $3.5 million decrease

0% 25% 50% 75% DELLPXPCHGEFTINWYLFBPCLGPIPPOP Debt to Capital Employed December 31, 2005

Dollars (millions) 1Q2005 1Q Net Sales Net Income Dollars (millions) 1Q2005 1Q2006 First Quarter Financial Results