“This is a stellar result that again vindicates our ‘forestry-only’ business model and caps off a big year for the Company,” Marcus Derham, Willmott Forests CEO, said today.

“In the face of difficult trading conditions across financial markets through much of FY08, we have successfully completed the BioEnergy takeover, secured a 20 year wood supply agreement from the NSW Government and entered a 50:50 Joint Venture with Dongwha to develop a state of the art processing facility in Bombala.

“Our Premium Forestry Blend, which offers three proven species across diversified regions with a range of end markets and multiple income streams, has been particularly well supported by our distribution network which has enabled us to significantly increase our market share in Forestry MIS,” Mr Derham said.

Of the $95 million Woodlot sales revenue $22 million will be recognised as income at June 30, 2008 with the balance of $73 million carried forward to FY09. The Company’s stated revenue recognition policy requires revenue from Woodlot sales to be recognised in line with plantation establishment works.

Profit Forecast

Willmott Forests expects to record underlying NPAT in excess of $10.5 million in FY08 excluding non-recurring items primarily related to restructuring Willmott Timbers existing sawmilling business in preparation for the Joint Venture with Dongwha.