Evergreen Reduction In Year End Forest Value

Evergreen Advises Reduction In Year End Forest Value

Evergreen Forests Limited announced today that its independent forest valuer, Jaakko Poyry (Asia-Pacific) Limited, had given a preliminary indication that the company's forest value for the year-end 30 June 2003 would be in the range of $141m to $149m. The independent forest value at 30 June 2002 was $162.4m.

Evergreen's CEO, Mr Mark Bogle, said that operating performance for this financial year would not be affected by a writedown in the forest asset value. He confirmed that, although the company had moderated its harvest volumes in the current six month period, Evergreen was still expecting an operating result similar to last year ($6.9m), before non-cash adjustments.

While the reduction in the company's forest value was disappointing, Mr Bogle said it reflected three current unfavourable trends for exporters: low log prices, high shipping costs and a higher NZ dollar. He also noted that the company, in its interim report for the period ended 31 December 2002, had foreshadowed a value reduction if these trends continued.

Mr Bogle said that the company was reviewing its production plans and that, to preserve shareholder value, harvest levels may be further reduced until margins improved. He said that Evergreen's ability to vary its production in response to market conditions is a feature of its focus on forest asset ownership, removing any pressure to maintain harvest levels to supply company-owned manufacturing facilities.

Evergreen is a public company listed on the New Zealand Stock Exchange. The company owns or has cutting rights to over 21,000 stocked hectares (52,000 acres) planted in fast-growing radiata pine. Its forest properties are principally located in Northland, South Auckland, the East Coast and the West Coast of the South Island.

For further information, contact Mark Bogle on +64 9 307 3240 or email mailto:msb@evergreen.co.nz

Our website is: http://s0.tx.co.nz/at/tep83i25461a4j12283s4c1946319t9f2n787646z

For information on the New Zealand stock market and the company's share price on the NZSE, visit: http://s0.tx.co.nz/at/tep83i25460a4j12283s4c1946319t9f2n787646z

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