EANS-Adhoc: Precious Woods: Sales growth of 17% despite difficult market conditions, drop of operational profit and extraordinary, non-recurring adjustments at year-end lead to a net loss for 2008

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
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announcement.
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annual report

21.04.2009

The Precious Woods Group achieved in 2008 a total operating income of
USD 116.7 million. This corresponds to a growth of 17% compared to
2007 (USD 99.8 million). With the elimination of currency effects the
increase is reduced to 10%. Sales of Gabonese round wood, of
electricity in Brazil, as well as the revenue from emission rights
and the increase in biological assets in Central America were
satisfactory. However, sales of sawn timber and veneer failed to meet
expectations.

Demand for timber products in export markets weakened particularly in
the forth-quarter 2008 due to the consequences of the financial
crisis and global economic downturn. The decline in sales mainly in
Holland was caused by lower sales volumes and an increased pressure
on sales prices. The operational contribution was furthermore
adversely affected by a loss at the rotary veneer factory in Gabon,
due to temporary production related issues. Local sales in Brazil on
the other hand, performed well, showing an increase of 80%.

Extraordinary and non-recurring factors required at year-end
significant adjustments of USD 9.2 million. These compromise
essentially charges due to the cessation of operational activities in
the Brazilian state of Pará, as well as adjustments of inventories
and intangible assets of Precious Woods Europe. The Group reports
therefore a loss from operating activities (EBIT) of USD 10.0
million. After an impairment value of USD 2.9 million for the
investment in the Democratic Republic of Congo and the Group´s net
finance expense of USD 3.2 million, the net loss (after tax) amounts
to USD 14.5 million in 2008.

With the adjustments undertaken, Precious Woods strengthened the
balance sheet and is therefore able to face the challenges of 2009
and the difficult business environment with confidence. Detailed
information can be found in the Annual Report 2008, which will be
published today on www.preciouswoods.com.

Precious Woods will refrain from publishing quarterly financial
figures in the future. The next half-year financial results of the
Group will be published in September 2009.

Conference call for analysts, investors and media - Full Year Results
2008

The telephone conference will be conducted by Ernst A. Brugger
(Chairman of the Board a.i.), Andreas Heusler (CEO) and Cornelia
Gehrig (CFO). To participate in the conference please call in at
least 5 minutes before the conference begins.

Wednesday, April 22, 2009
11.30 a.m. (CET)
Dial-in number: +41 52 267 07 07
PIN-Code: 938160

The conference will be held in German.

end of ad-hoc-announcement ==========================================
====================================== Precious Woods is one of the
leading companies in the area of sustainable management and use of
tropical forests. The company's core activities include reforestation
and sustainable management of tropical forests, timber processing and
the trading of FSC-certified timber products. The generation of
emission rights and electricity from recovery wood represent further
integral elements of the company’s business. The shares of Precious
Woods Holding have been traded on the SIX Swiss Exchange since March
2002. Further information about Precious Woods is available at
www.preciouswoods.com.

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

Further inquiry note:

Patrick Mauron

Head of Corporate Communication

Precious Woods Holding Ltd.

Militärstrasse 90

CH-8021 Zürich

Tel.: +41 44 245 81 20

E-Mail: patrick.mauron@preciouswoods.com

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