RAYONIER INC — Director's Dealing 2007

May 17, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RAYONIER INC (RYN)
CIK: 0000052827
Period of Report: 2007-05-15

Reporting Person: NUTTER WALLACE LEE (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-05-15	Common Shares	M	20000	$17.06	Acquired	892436.105	Direct
2007-05-15	Common Shares	S	20000	$44	Disposed	872436.105	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-05-15	Employee Stock Option	$17.06	M	20000	Disposed	2009-01-06	Common Shares (20000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Shares	23543.9353	Indirect

Footnotes

F1: The sales reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on March 2, 2007.

F2: Shares are held in the Rayonier Investment and Savings Plan, a 401(k) plan, for this person's account.