euro adhoc: Precious Woods Holding AG, Zug / other / Precious Woods’ shareholders approve capital increase (E)

--------------------------------------------------------------------------------
Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
--------------------------------------------------------------------------------

25.08.2005

The Extraordinary General Meeting of Precious Woods Holding of August 25, 2005
approved all motions of the Board of Directors fulfilling all of the
requirements for the previously announced capital increase. The first step will
consist of a Rights Offering in the course of which existing shareholders can
purchase 1 new share for every 7 shares they own at a price of 70 CHF. The
rights exercise period is expected to last from September 19 to 27, 2005. In a
parallel second step, investors will be able to purchase new shares in a public
Share Offering. The issue price will be determined in a book-building process
and is expected to be published on September 30, 2005. These two steps will
enable the Company to raise a total of approximately 100 million CHF. The Lead
Manager is the Zürcher Kantonalbank.

Precious Woods will utilize the new funds to finance important expansion
projects: the Dutch company A. van den Berg BV, currently the most important
trader of FSC-certified tropical hardwood in Europe, will be acquired. Precious
Woods will invest in the largest forestry group in the Democratic Republic of
Congo with about 4000 employees and will thereby secure an important resource
base. This will begin with a minority investment, including the option to
significantly increase the participation in the next 7 years. Further forest
will be purchased in Brazil.

Precious Woods (SWX: PRWN) is active in the reforestation and sustainable
management of tropical forests, downstream wood processing and trading of FSC
certified timber and non- timber forest products. The shares of Precious Woods
have been listed on the SWX Swiss Exchange since March 2002. More information
about the company and its activities may be found on the website
www.preciouswoods.com.

Further inquiry note:
Kontakt:
Precious Woods Holding AG, Zug
Dr. Andres Gut, CEO
Tel. 41 1 245 80 10
mailto: [email protected]

end of announcement euro adhoc 26.08.2005 06:30:00
--------------------------------------------------------------------------------

emitter: Precious Woods Holding AG, Zug
c/o Militärstrasse 90
CH-8021 Zürich
phone: 41 1 245 80 10
FAX: 41 1 245 80 12
mail: [email protected]
WWW: http://www.preciouswoods.ch
ISIN: CH0013283368
indexes:
stockmarkets:
sector: Forestry & Timber
language: English

OTS-ORIGINALTEXT UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS | OTB

print