RAYONIER INC — Director's Dealing 2007

Sep 21, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RAYONIER INC (RYN)
CIK: 0000052827
Period of Report: 2007-09-20

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

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-09-20	Common Shares	M	10708	$14.35	Acquired	86200	Direct
2007-09-20	Common Shares	M	10000	$18.59	Acquired	96200	Direct
2007-09-20	Common Shares	S	20708	$46.1748	Disposed	75492	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-09-20	Employee Stock Option	$14.35	M	10708	Disposed	2011-01-04	Common Shares (10708)	Direct
2007-09-20	Employee Stock Option	$18.59	M	10000	Disposed	2012-01-04	Common Shares (10000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Shares	16367.6738	Indirect

Footnotes

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