EANS-Adhoc: Precious Woods Holding Ltd. /

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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01.10.2010

Message to our shareholders/Press release

Supportive measures to increase operational resultsefficiency through bridge
financing and an improvement in our the ability to access the capital market

Precious Woods is investing in a far-reaching restructuring of the company in
order to achieve satisfactory operational results as quickly as possible. As
indicated previously in the reporting for the first half year of 2010, these
changes are taking longer than planned. In this regard, external forces
suchfactors like the political and legal complexities in Brazil and Gabon also
play a role. The path taken since the middle of 2009 towards achieving increases
in operational efficiencyproductivity along with improved market and customer
orientation has been judged to be promising by the Board of Directors and by
Management. For 2011 we efforts will be made are striving to achieve a
significant improvement in our the operating result so break-even we can be
reached break-even as quickly as possible.

As it continues on this path, Precious Woods remains committed to its high
ecological and socially responsible targets (FSC certification). Investments are
being planned carefully and being made in a targeted way, for example in the new
sawmill in Bambidie (Gabon) for the processing of valuable hardwoods - a
reaction to the ban on the export of logs abruptly imposed by the government
there.

Bridge financing
The protracted implementation of the measures introduced has led the Board of
Directors to improve the liquidity of the Group by means of two loans from
current shareholders in the amounts of CHF 2 million and CHF 5 million. Both
loans, which run for four years, are based on the same conditions: they have an
interest rate of 6.25% and can be converted into Precious Woods shares within
the scope of a capital increase. The Board of Directors is very grateful to both
lenders for their commitment.

Improvement in our ability to access the capital market
Looking ahead to the turnaround that is in progress as well as the strategic
development of the Precious Woods Group and the related investments in the
foreseeable future, the Board of Directors has also decided to propose a capital
increase whereby the subscription rights of all shareholders will be ensured.
Due to legal and statutory regulations, an increase in the capital of the
company is possible only if the issue price of new shares is at least the same
as their nominal value. The nominal value of a Precious Woods share is currently
CHF 50.00; the price on the stock market is fluctuating in the neighbourhood of
CHF 30.00. Under these requirements, it is therefore at present not possible for
Precious Woods to issue new shares. Therefore, the nominal value must be reduced
enough so it drops to a level below the stock market price. In that way, the
company's ability to access the capital market will be ensured. The reduction in
the nominal value of the Precious Woods share also enables our the lenders to
convert both of the aforementioned loans at a fixed conversion price of CHF
35.00 once the reduction in the nominal value is recorded in the commercial
register. A reduction in the nominal value has no effect on the intrinsic value
of the company because the reduction amount is being allocated to the reserves.
This measure gives Precious Woods the necessary flexibility to carry out a
capital increase under favourable market conditions while also ensuring the
subscription rights of the current shareholders.

The Board of Directors will call an Extraordinary General Meeting in the near
future due time (bitte überprüfen ob korrekt) to allow for a vote and a
discussion and a vote on this reduction in the nominal value in relation the
context of to the strategic orientation of the company.

For more information please contact:
* Ernst A. Brugger, Chairman of the Board of Directors (contact: )
* Cornelia Gehrig, CFO (contact: )

Precious Woods Holding AG, Corporate Communications
Tel.: +41 44 245 81 20, Fax: +41 44 245 81 12, [email protected]

Further inquiry note:
Precious Woods Holding Ltd.
Militärstrasse 90
CH-8021 Zürich
end of announcement euro adhoc
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issuer:      Precious Woods Holding Ltd.
             Baarerstrasse 135
             CH-6301 Zug
phone:        +41 44 245 80 10
FAX:          +41 44 245 80 12
mail:        [email protected]
WWW:         http://www.preciouswoods.com
sector:      Forestry & Timber
ISIN:        CH0013283368
indexes:     SPI

stockmarkets: Main Standard: SIX Swiss Exchange
language: English

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