euro adhoc: Precious Woods Holding AG, Zug / Annual Reports / Precious Woods: Poor Results 2005 - Excellent Outlook for 2006

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

25.04.2006

Precious Woods increased gross trading sales by 6.1% to 18.0 million
USD in 2005 compared to USD 17.0 million in prior year. Net trading
sales stagnated at 15.3 million USD. A net loss of USD 7.5 million
was incurred in 2005 against a profit of USD 3.3 million in 2004.

The significant net loss results from a one time accumulation of
negative factors in Brazil which caused the net result to fall by USD
9 million: the late issue of the harvest permit for Precious Woods
Pará incurred USD 3 million in lost trading revenue and a USD 2
million charge to income. Exchange rate related cost increases
amounted to USD 2 million to which wage and fuel price increases
added USD 1.5 million. In addition, one-off write-offs incurred a
charge of USD 3.5 million.

Precious Woods expects the current year 2006 to be significantly more
positive than 2005. Even if Brazil still yields a small loss due to
the ongoing challenging business environment, the profit should
increase by a factor of two and a half to three compared to the
profitable year 2004. The main reasons for this are the commencing
sale of CO2 emission rights and the price developments in these
markets which vastly exceed prior expectations. The quantities of CO2
emission rights which Precious Woods will have available to monetize
are also at the high end of expectations.

After completion of acquisitions in 2005 the activities of Precious
Woods are now much more broadly based and no longer so highly
dependant on the business in Brazil. The European trading Company,
now delivering more than two thirds of the Group revenue, has
developed well. Orders booked and revenue are up on prior year and on
budget with good margins.

Key financial data (USD million)

2004 2005 Change
Gross Turnover 16.97 18.01 6.1%
Net Turnover 15.50 15.31 -1.2%
Production Cost 11.30 20.34 80.0%
Gross Margin 4.20 -5.03 -
Net Increase in Value Central America 3.62 3.58 -1.1%
Total revenue* 20.87 20.62 -1.2%
Operating Result 4.50 -8.61 -
Overall Result 3.33 -7.46 -
Number of employees 1’630 1’741 111

* Net trading sales + Gross Increase in the fair value of biological
assets Central America

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 26.04.2006 05:30:00
--------------------------------------------------------------------------------

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