RAYONIER INC — Director's Dealing 2004

May 28, 2004

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RAYONIER INC (RYN)
CIK: 0000052827
Period of Report: 2004-05-26

Reporting Person: O GRADY JOHN P (SR VP, Administration)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2004-05-26	Common Shares	M	17805	$16.85	Acquired	102804.50	Direct
2004-05-26	Common Shares	S	16205	$41.00	Disposed	86599.50	Direct
2004-05-26	Common Shares	S	1600	$41.01	Disposed	84999.50	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2004-05-26	01/03/95 Employee Stock Options	$16.85	M	17805	Disposed	2005-01-05	Common Shares (17805.00)	Direct