euro adhoc: Precious Woods Holding AG, Zug / quarterly or semiannual financial statement / Precious Woods triples sales due to acqusitions and nears break-even in the first quarter. Confident full yea

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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20.05.2006

At the Annual General Assembly of Shareholders on 20 May 2006
Precious Woods published the Key Financial Data (unaudited) for the
first quarter 2006. Net sales advanced to USD 10.5 million from USD
3.8 million in the first quarter of the prior year. This increase in
sales is due to the inclusion of the recent acquistions, Precious
Woods Europe in Holland and the wood chip fuelled power plant
(Precious Woods Energia) in Brazil.

The first quarter result amounted to a loss of USD 135,000 which was
close to break-even after Precious Woods had suffered deep losses in
the prior year. The Brazilian subsidiaries still incurred a loss in
the first quarter. The other subsidiaries performed in line with
budget achieving profits which largely equalized the loss incurred in
Brazil.

The restructuring measures taken in Brazil were only partially
effective in the first quarter and should become more evident in the
course of the full year. Further actions were initiated to fully
eliminate the losses in Brazil. A number of factors, not least of
which is the currency exchange rate, will determine whether Brazil
can reach break-even in the full year. As opposed to prior year
Precious Woods has undertaken partial hedging of a possible further
depreciation.

The first quarter performance includes USD 200,000 net profit from
the sale of emission rights. After the volatile swings in the
European emission markets after 27 April 2006, exactly forecasting
expected revenues from emission rights in 2006 has become more
difficult. Precious Woods' power plant project has been registered
by the CDM Board with the sale of corresponding emissions rights
being negotiated; significant revenues from this project are expected
in the third quarter.

Precious Woods continues to forecast full year net sales in the
region of USD 40 to 45 million and a net profit in the range of USD 6
to 10 million. However in this context it is important to consider
that the development of several important factors such as the
currency exchange rate in Brazil, fuel prices and the volatility of
the emission rights markets cannot be reliably predicted.

The ordinary Annual General Meeting of Precious Woods Holding Ltd.
has approved all motions brought forward by the Board of Directors.
Claude Martin, General Director of WWF International from 1993 to
2005, was elected as a new member of the Board of Directors.

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.

end of announcement euro adhoc 20.05.2006 18:24:18
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ots Originaltext: Precious Woods Holding AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Kontakt:
Precious Woods Holding AG, Zug
Dr. Andres Gut, Chairman
Tel. 41 1 245 80 10
mailto: office@preciouswoods.ch

Branche: Forestry & Timber
ISIN: CH0013283368
WKN: 982280
Index: SPI
Börsen: SWX Swiss Exchange / official dealing