euro adhoc: Precious Woods Holding AG, Zug / Mergers - Acquisitions - Takeovers / Precious Woods Continues to Expand (E)

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In March Precious Woods was again able to acquire a further 750 km2 of forest in the Federal State of Amazonas. Precious Woods Amazon now owns more than 2,450 km2 of forest which should provide sufficient raw material to meet all future requirements of the company's own timber processing operations. For comparison: the surface area of the canton of Zurich, Switzerland covers 1,729 km2. Together with the purchase of additional forest announced in February and the expansion of the forest owned by Precious Woods Pará in 2002, the forested land per share has now risen from 1,042 m2 per share (at the end of 2001) to 1,796 m2 per share, and this despite the capital increase in 2002. Precious Woods is convinced that the acquisition of forest in favourable locations in the Amazonas area is not only a strategically sound investment but also a way to save the forest from destruction due to clear cutting and burning.

Precious Woods has founded a new subsidiary: Precious Woods Nicaragua. In Nicaragua Precious Woods plans to continue the reforestation programme which was begun in 1990 in Costa Rica. Whereas the price of land in Costa Rica has risen sharply, interest in acquiring land in Nicaragua is generally subdued. Labour costs are very low in Nicaragua and there is a pressing need for new jobs, especially in rural areas. Furthermore, reforestation is a matter of urgency because large-scale deforestation is having a negative impact on the water balance. On the one hand, rivers which used to run water all year round are drying out. On the other hand, heavy rainfalls lead to catastrophic flooding. Precious Woods plants mainly teak, as the conditions for growth for this species of timber are excellent in Central America and teak fetches a good price. At the same time many indigenous species, some of which are threatened with extinction, are also planted on a small scale. Precious Woods expects to obtain CO2 credits for the new plantations as growing trees absorb considerable amounts of CO2.

Further inquiry note:
Precious Woods Holding AG, Zug
Dr. Andres Gut, CEO
Tel. 41 1 245 80 10
Tel: 41 1 245 80 10
FAX: 41 1 245 80 12

end of announcement euro adhoc

Emittent: Precious Woods Holding AG, Zug
c/o Militärstrasse 90
CH-8021 Zürich
Tel: 41 1 245 80 10
FAX: 41 1 245 80 12
ISIN: CH0013283368
WKN: 982280
Indizes: SPI
Börsen: official dealing SWX Swiss Exchange
Branche: Forestry & Timber
Sprache: Englisch