Evergreen Signs Revised Offer

Evergreen Signs Revised Offer

Evergreen Forests Limited announced today that the Company has signed a revised offer with James Fielding Funds Management Limited for NZ$115 million. The revised offer incorporates two principal changes to the previous offer from James Fielding Funds Management Limited:
* consideration has been increased from $104.17 million to $115.0 million (subject to purchase price adjustments as detailed in the Notice of Meeting); and
* the principal completion date has been extended from 30 September 2005 to 31 October 2005.

The revised offer relates to all of the Company’s North Island forest and land assets as outlined in the Notice of Meeting mailed to shareholders on 9 September.

The revised offer translates to approximately 34 cents per share in net distributable proceeds. James Fielding Funds Management Limited have also undertaken to work with Evergreen on a “best endeavours” basis to achieve an assignment of the Hancock Loan so as to avoid payment by Evergreen of the break fee under that loan. If all of the Hancock Loan break fee can be avoided then the net distributable proceeds are estimated to increase to 35.5 cents per share. The distributable proceeds are subject to a number of variables in the period to settlement including exchange rates and swap rates. These estimates do not include any value attributed to the shell company.

The revised offer for $115 million from James Fielding Funds Management Limited will be considered at the shareholders meeting scheduled for Monday 26 September.

The back-up offer from the New Zealand Superannuation Fund for $112 million ( valued at approximately 32 cents per share) will also be considered at the same meeting if the offer from James Fielding Funds Management Limited does not gain the approval of 75% of shareholders present or represented by proxy.

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