RAYONIER INC — Director's Dealing 2006

May 11, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RAYONIER INC (RYN)
CIK: 0000052827
Period of Report: 2006-05-09

Reporting Person: MARGIOTTA CHARLES (SR VP, BUS DEV)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-05-09	Common Shares	M	16000	$17.51	Acquired	73351	Direct
2006-05-09	Common Shares	S	100	$42.11	Disposed	73251	Direct
2006-05-09	Common Shares	S	200	$42.07	Disposed	73051	Direct
2006-05-09	Common Shares	S	200	$42.16	Disposed	72851	Direct
2006-05-09	Common Shares	S	200	$42.09	Disposed	72651	Direct
2006-05-09	Common Shares	S	200	$42.13	Disposed	72451	Direct
2006-05-09	Common Shares	S	400	$42.14	Disposed	72051	Direct
2006-05-09	Common Shares	S	400	$42.24	Disposed	71651	Direct
2006-05-09	Common Shares	S	500	$42.2	Disposed	71151	Direct
2006-05-09	Common Shares	S	600	$42.03	Disposed	70551	Direct
2006-05-09	Common Shares	S	900	$42.06	Disposed	69651	Direct
2006-05-09	Common Shares	S	1000	$42.1	Disposed	68651	Direct
2006-05-09	Common Shares	S	1100	$42.15	Disposed	67551	Direct
2006-05-09	Common Shares	S	1800	$42.08	Disposed	65751	Direct
2006-05-09	Common Shares	S	1900	$42.12	Disposed	63851	Direct
2006-05-09	Common Shares	S	3100	$42.05	Disposed	60751	Direct
2006-05-09	Common Shares	S	3400	$42.02	Disposed	57351	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-05-09	Employee Stock Option	$17.51	M	16000	Disposed	2010-01-05	Common Shares (16000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Shares	15348.56	Indirect

Footnotes

F1: Shares are held in the Rayonier Investment and Savings Plan, a 401(k) plan, for this person's account.