Reduced Forest Valuation

27 August 2004

Reduced Forest Valuation Impact Evergreen Full Year Result

Evergreen Forests Limited announced a full year after tax loss of $12.026m (2003 loss $36.484m) on turnover of $40.247m (2003 $40.100m).

Forest revaluation was negative $17.298 (2003 $27.787), which includes a modest positive valuation movement of $2.348m in the second half year to 30th June, 2004.

Chairman, Peter Wilson, said the result reflected the reality of reduced NZ$ receipts for logs with the export market showing poor returns due in part to continuing high shipping costs and the strength of NZ currency.

Mr Wilson also noted that there had been significant transactions of forest- land over the last year and more in prospect as the industry ownership and cost base adjusted to changing market conditions.

With the company organisational restructure completed and non- core asset sales under consideration, Mr Wilson said the Board was actively addressing future options for the company.

ENDS

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