timhb / todha, page-22

Latest update from mgt..

Bondholder meeting to take place end of the month. Board is proposing to put in place a 6 month grace period to allow time to work out any issues with growers and look at other proposals to put in place another manager of the growers.

Growers are harvesting crops and paying rent to timbercorp hence cash flow positive.

No further interest is planned to be paid to bond holders. Interest will be capitalised upon maturity (dec-10).