EANS-Adhoc: Precious Woods Holding Ltd. / Reduced demand for tropical timber has negative impact on half year result 2009

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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6-month report

31.08.2009

The global financial and economic crisis was felt on the tropical
timber markets and also had a negative influence on the course of
business of Precious Woods during the first half of 2009. Total
operating income for the first six months of the year declined to USD
44.8 million, 29% less than in the previous year. The result from
operating activities fell from USD 4.7 million in 2008 to USD -3.7
million during the current year. The net loss amounted to USD 4.8
million. The Board of Directors and the Group Management implemented
measures to improve the financial results in a sustainable way
without jeopardizing the sustainable management of the company´s
forest resources.

Gabon and Central America succeeded to obtain reasonable results
despite a reduced demand and lower sales whereas the businesses in
the Netherlands and especially in Brazil produced sales and
operational results which were unsatisfactory due to both external
and internal reasons.

In USD million 1st half 2009 1st half 2008

Timber and electricity sales 40.8 57.8 -29%
Total operating income 44.8 63.5 -29%
Result from operating activities -3.7 4.7
Net income -4.8 3.8

Extraordinary expenses of around USD 2.2 million were incurred during
the first half of 2009. A portion of these extraordinary factors
could be compensated by gains from the sales of non-operating assets
in the amount of USD 1.3 million, which resulted in a net impact of
USD 0.9 million.

Financing According to the decision of the last Annual General
Meeting, Precious Woods is entitled to issue a convertible bond on
the capital market in a nominal amount of up to CHF 20 million.
Conditions on the capital market in the first half-year did not
permit such an issuance. Since the beginning of the year the company
has been involved in constructive talks with its key banks regarding
the refinancing of loans coming up for repayment. Due to the
development of the operational result (EBITDA) some credit conditions
could not be met. With the implemented actions the profitability of
the Group shall be improved and the financing of the company be
enhanced.

Detailed information can be found in the Half Year Report 2009, which
will be published today on www.preciouswoods.com.

Conference call for analysts, investors and media - Half Year Results
2009

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

Tuesday, September 1, 2009
09:00 a.m. (CET)
Dial-in number: +41 52 267 07 07
PIN-Code: 406604

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 SWX 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: media@preciouswoods.com

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