EANS-Adhoc: Precious Woods Holding Ltd. / Decline in sales 2009 by 19.8% with constant exchange rates in a challenging market environment.

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Company Information

05.03.2010

In 2009, Precious Woods achieved revenues of USD 87.8 million from
timber sales, biomass energy, emission rights and an increase of
biological assets. The disclosed decline is 24.8% compared to the
prior year (USD 116.7 million), and 19.8% adjusted for exchange rate
effects.

The reported decline in sales for the prior financial year is to some
extent better than the half-year result of 2009 (-29.5%) and reflects
the slightly better market environment in the last quarter of 2009.
Altogether, the decline is in line with the total market for tropical
timber. The Board of Directors and the Group Management were reacting
to the continuous unsatisfactory market developments with immediate
restructuring measures, increase in efficiency and strengthening of
Precious Woods´ market position.

Precious Woods Gabon has managed to achieve the goals by obtaining
satisfactory volumes and sound prices during the second half-year.
The veneer plant of TGI has confirmed the turnaround of 2009 and by
the end of January 2010 also received the FSC certification for the
chain of custody. In the second half-year, timber sales volume of
Precious Woods Amazon suffered due to a delay caused by the
authorities granting the harvest permit and, as a consequence, due to
the commercially diminished timber quality from alternative harvest
areas. In return, revenues from sales on the local Brazilian markets
almost doubled compared to the previous year. Sales of energy in
Brazil declined due to reduced biomass volumes stemming from the saw
mill and softer wood species with a lower fuel value. Earnings from
emission rights hence remained below previous year´s level. The lower
turnover of Precious Woods Europe leads back to a strong drop in
demand on the European markets in the first half year and a
considerable reduction in stocks. The increase of biological assets
in Central America followed the positive long-term trend.

Restructuring measures, increase in efficiency and market positioning
The Board of Directors and the Group Management reacted swiftly to
the negative market developments. Assuming that the market
environment would only improve slowly, additional measures have been
implemented during the second half-year: far reaching restructuring
measures, increase in efficiency and concentrated sales efforts that
will be continued throughout 2010. The associated costs and
adjustments will be fully charged to the annual account of 2009.
Precious Woods Holding will disclose a clearly negative and
unsatisfactory result for the year 2009. The various implemented
measures will improve the productivity and market position of the
group and positively influence future operational results.

Diversification favors market opportunities With a diversified
resource and market policy, as well as the comprehensive FSC
certification, Precious Woods is well positioned: on the one hand
with sustainable forest management in Latin America and Africa, and
on the other hand with a broad product portfolio ranging from veneer,
round and sawn wood to the energy production and CO2 emission
certificates. The Group Management is confident that the consistent
aligned strategic focus on sustainability and the already introduced
and implemented measures are a solid base for profitable growth.

All stated figures in this media release are provisional and not yet
audited. The final audited accounts will be published on April 26,
2010.

Conference call for analysts, investors and media

The conference call will be conducted by Ernst A. Brugger (Chairman
of the Board/CEO a.i.) and Cornelia Ge-hrig (CFO). To join conference
call please dial in at least 5 minutes before the beginning of the
conference. The conference will be held in German.

Friday, March 5, 2010
10:00 a.m.(CET)
Dial-in number: +41 (0) 44 580 46 23
PIN-Code: 94785483#

end of ad-hoc-announcement ==========================================
====================================== Precious Woods is an
international company active in the 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: media@preciouswoods.com

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