euro adhoc: Precious Woods Holding AG, Zug / quarterly or semiannual financial statement / Precious Woods grows turnover and profit in the first nine months of 2006 (E)

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Compared to the same period in the prior year, Precious Woods’ net turnover in the first nine months almost tripled, from USD 11.2 million in 2005 to USD 32.7 million in 2006. This growth in turnover was driven by the acquisition of the Dutch trading company and the woodchip-fired power plant in Brazil in 2005. Net income per end of September amounted to USD 2.3 million, compared to USD 1.2 million in the prior year period. The results reflect the impact of two special factors: The certified emission rights from the power plant were capitalised in the balance sheet at their gross realisable value of USD 8.4 million. Some of these emission rights were generated in previous years. On the other hand, the exchange rate-related cost increases of 2004 and 2005 resulted in operating losses and necessary restructuring costs at the Brazilian businesses in the first semester of 2006. In addition, it was necessary to review and adjust Precious Woods Amazon's balance sheet. Together, these factors adversely affected the result leading to a loss in Brazil of USD 7.4 million, a portion of which is due to prior year effects.

Following the completion of the comprehensive restructuring in Brazil, Precious Woods can again look to the future with confidence. One cause for optimism is the rise in prices for hardwoods that has been evident over the past few months. The average price of new orders for future supply is now some 20% higher than the average price achieved in the first nine months. Whereas Precious Woods had previously expected that it would only achieve break-even for the full year, the company now expects to achieve a full year profit significantly in excess of the nine-month result.

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

Further inquiry note:
Precious Woods Holding AG, Zug
Dr. Theodor Scheidegger, CFO / MD Carbon & Energy
Tel. 41 1 245 80 10

end of announcement euro adhoc

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
ISIN: CH0013283368
indexes: SPI
stockmarkets: official dealing: SWX Swiss Exchange
sector: Forestry & Timber
language: English