EANS-Adhoc: Precious Woods Holding Ltd. /

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Company Information

01.10.2010

Message to our shareholders/Press release

Supportive measures to increase operational resultsefficiency through
bridge financing and an improvement in our the ability to access the
capital market

Precious Woods is investing in a far-reaching restructuring of the
company in order to achieve satisfactory operational results as
quickly as possible. As indicated previously in the reporting for the
first half year of 2010, these changes are taking longer than
planned. In this regard, external forces suchfactors like the
political and legal complexities in Brazil and Gabon also play a
role. The path taken since the middle of 2009 towards achieving
increases in operational efficiencyproductivity along with improved
market and customer orientation has been judged to be promising by
the Board of Directors and by Management. For 2011 we efforts will be
made are striving to achieve a significant improvement in our the
operating result so break-even we can be reached break-even as
quickly as possible.

As it continues on this path, Precious Woods remains committed to its
high ecological and socially responsible targets (FSC certification).
Investments are being planned carefully and being made in a targeted
way, for example in the new sawmill in Bambidie (Gabon) for the
processing of valuable hardwoods - a reaction to the ban on the
export of logs abruptly imposed by the government there.

Bridge financing The protracted implementation of the measures
introduced has led the Board of Directors to improve the liquidity of
the Group by means of two loans from current shareholders in the
amounts of CHF 2 million and CHF 5 million. Both loans, which run for
four years, are based on the same conditions: they have an interest
rate of 6.25% and can be converted into Precious Woods shares within
the scope of a capital increase. The Board of Directors is very
grateful to both lenders for their commitment.

Improvement in our ability to access the capital market Looking ahead
to the turnaround that is in progress as well as the strategic
development of the Precious Woods Group and the related investments
in the foreseeable future, the Board of Directors has also decided to
propose a capital increase whereby the subscription rights of all
shareholders will be ensured. Due to legal and statutory regulations,
an increase in the capital of the company is possible only if the
issue price of new shares is at least the same as their nominal
value. The nominal value of a Precious Woods share is currently CHF
50.00; the price on the stock market is fluctuating in the
neighbourhood of CHF 30.00. Under these requirements, it is therefore
at present not possible for Precious Woods to issue new shares.
Therefore, the nominal value must be reduced enough so it drops to a
level below the stock market price. In that way, the company's
ability to access the capital market will be ensured. The reduction
in the nominal value of the Precious Woods share also enables our the
lenders to convert both of the aforementioned loans at a fixed
conversion price of CHF 35.00 once the reduction in the nominal value
is recorded in the commercial register. A reduction in the nominal
value has no effect on the intrinsic value of the company because the
reduction amount is being allocated to the reserves. This measure
gives Precious Woods the necessary flexibility to carry out a capital
increase under favourable market conditions while also ensuring the
subscription rights of the current shareholders.

The Board of Directors will call an Extraordinary General Meeting in
the near future due time (bitte überprüfen ob korrekt) to allow for a
vote and a discussion and a vote on this reduction in the nominal
value in relation the context of to the strategic orientation of the
company.

For more information please contact:
* Ernst A. Brugger, Chairman of the Board of Directors (contact: )
* Cornelia Gehrig, CFO (contact: )

Precious Woods Holding AG, Corporate Communications Tel.: +41 44 245
81 20, Fax: +41 44 245 81 12, media@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:

Precious Woods Holding Ltd.

Militärstrasse 90

CH-8021 Zürich

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