<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM U.S. TIMBERLANDS KLAMATH FALLS, L.L.C. SEPTEMBER 30, 1997 AND DECEMBER 31, 1996 COMBINED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <CIK> 0001047739 <NAME> U.S. TIMBERLANDS KLAMATH FALLS, L.L.C. <PERIOD-TYPE> 6-MOS OTHER <F1> <FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996 <PERIOD-START> JAN-01-1997 AUG-30-1996 <PERIOD-END> SEP-30-1997 DEC-31-1996 <CASH> 24,032 16,613 <SECURITIES> 0 0 <RECEIVABLES> 5,777 1,694 <ALLOWANCES> 0 0 <INVENTORY> 0 78 <CURRENT-ASSETS> 31,765 29,586 <PP&E> 1,768 1,478 <DEPRECIATION> 221 58 <TOTAL-ASSETS> 415,227 310,191 <CURRENT-LIABILITIES> 31,750 8,127 <BONDS> 0 0 <PREFERRED-MANDATORY> 0 0 <PREFERRED> 0 0 <COMMON> 0 0 <OTHER-SE> (14,523) (2,936) <TOTAL-LIABILITY-AND-EQUITY> 415,227 310,191 <SALES> 41,057 14,019 <TOTAL-REVENUES> 41,057 14,019 <CGS> 12,101 6,179 <TOTAL-COSTS> 28,350 18,786 <OTHER-EXPENSES> (48) 36 <LOSS-PROVISION> 0 0 <INTEREST-EXPENSE> 17,818 7,316 <INCOME-PRETAX> (6,825) (13,036) <INCOME-TAX> 0 0 <INCOME-CONTINUING> (6,825) (13,036) <DISCONTINUED> 0 0 <EXTRAORDINARY> (3,571) 0 <CHANGES> 0 0 <NET-INCOME> (10,396) (13,036) <EPS-PRIMARY> 0 0 <EPS-DILUTED> 0 0 <FN> <F1> The income statement data for the period ended December 31, 1996 represents only four months of operations as the Company was formed on August 30, 1996. </FN>