euro adhoc: Precious Woods Holding AG, Zug / Annual Reports / Precious Woods: Poor Results 2005 - Excellent Outlook for 2006 (E)

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The issuer is responsible for the content of this announcement.
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25.04.2006

Precious Woods increased gross trading sales by 6.1% to 18.0 million USD in 2005
compared to USD 17.0 million in prior year. Net trading sales stagnated at 15.3
million USD. A net loss of USD 7.5 million was incurred in 2005 against a profit
of USD 3.3 million in 2004.

The significant net loss results from a one time accumulation of negative
factors in Brazil which caused the net result to fall by USD 9 million: the late
issue of the harvest permit for Precious Woods Pará incurred USD 3 million in
lost trading revenue and a USD 2 million charge to income. Exchange rate related
cost increases amounted to USD 2 million to which wage and fuel price increases
added USD 1.5 million. In addition, one-off write-offs incurred a charge of USD
3.5 million.

Precious Woods expects the current year 2006 to be significantly more positive
than 2005. Even if Brazil still yields a small loss due to the ongoing
challenging business environment, the profit should increase by a factor of two
and a half to three compared to the profitable year 2004. The main reasons for
this are the commencing sale of CO2 emission rights and the price developments
in these markets which vastly exceed prior expectations. The quantities of CO2
emission rights which Precious Woods will have available to monetize are also at
the high end of expectations.

After completion of acquisitions in 2005 the activities of Precious Woods are
now much more broadly based and no longer so highly dependant on the business in
Brazil. The European trading Company, now delivering more than two thirds of the
Group revenue, has developed well. Orders booked and revenue are up on prior
year and on budget with good margins.

Key financial data (USD million)

2004   2005          Change
Gross Turnover                         16.97  18.01           6.1%
Net Turnover                           15.50  15.31          -1.2%
Production Cost                        11.30  20.34          80.0%
Gross Margin                            4.20  -5.03            -
Net Increase in Value Central America   3.62   3.58          -1.1%
Total revenue*                         20.87  20.62          -1.2%
Operating Result                        4.50  -8.61            -
Overall Result                          3.33  -7.46            -
                                                            
Number of employees                    1’630  1’741           111

* Net trading sales + Gross Increase in the fair value of biological assets
Central America

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, Chairman
Tel. 41 1 245 80 10
mailto: office@preciouswoods.ch

end of announcement euro adhoc 26.04.2006 05:30:00
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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: office@preciouswoods.ch
WWW: http://www.preciouswoods.ch
ISIN: CH0013283368
indexes: SPI
stockmarkets: official dealing: SWX Swiss Exchange
sector: Forestry & Timber
language: English

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