SHAW Analyst: Strong Demand

SHAW Analyst Comments: Timbercorp update
June 25, 2002

*** Started first commercial harvest ***

TIM has started its first commercial harvest of Eucalypt plantations for woodchip exports to Japan, for private plantations managed by TIM.

In Dec 02, will commence harvesting 500 ha of its 1992 projects, continuing & escalating with maturing of further projects.

**Earnings from harvest

TIM will receive a harvest supervision fee & a margin on harvesting costs, but probably not a bonus on crop value for these early years, with higher than forecast prices offset by lower yields (due to a lack of rain in last 2 years).

**Strong demand for 2002 projects

Is experiencing strong demand for 02 projects, with almonds fully sold & good subscription rate for olives, trees & multi-product offering. Expect update on 2/07.