On the 27/11/02 TIM announced the following:TIMBERCORP LIMITED...

On the 27/11/02 TIM announced the following:

TIMBERCORP LIMITED 2002-11-27 ASX-SIGNAL-G

HOMEX - Melbourne

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HOW DOES THE CURRENT DROUGHT AFFECT TIMBERCORP?

NEITHER TIMBERCORP NOR ITS GROWERS HAS BEEN MATERIALLY AFFECTED BY
THE CURRENT DROUGHT.

What the Bureau of Meteorology describes as "serious to severe"
rainfall deficiencies has affected a vast sweep of the country,
extending from northwest Western Australia across the Northern
Territory and northern South Australia to western Queensland, and
further southward across most of New South Wales, the western half of
Victoria and eastern South Australia. Parts of the southwest of WA
are also affected, for the third successive year.

University of Newcastle researchers say drought-affected farmers in
Eastern Australia can expect to get significant rainfall by March or
April 2003.

The effects of the drought on Timbercorp may be summarised as
follows.

EUCALYPT PLANTATIONS

The severe drought conditions presently recorded across much of
Australia do not extend to the majority of Timbercorp's eucalypt
estate, and the small areas affected have only been marginally
affected.

Blue gums, like any agricultural crop, can be influenced by extended
periods of low rainfall. Typically, low rainfall events result in
slower growth rates, rather than the death of trees.

Tree growth is strongly related to site characteristics, particularly
depth of soil, soil water storage capacity and presence of
underground water tables. Blue gums are known to access moisture from
the soil at depths exceeding 10m and are thought to readily make use
of ground water supplies. Hence, the impacts of periods of low
rainfall can be at least partially off-set by carefully selecting
sites that have deep soils with a high water storage capacity.

Timbercorp employs a rigorous site assessment system wherein soil
characteristics are established to at least 4m and long-term climatic
data are evaluated. Sites are rejected that do not meet average
annual rainfall requirements and/or which have shallow soils, or
soils with poor water storage capacity. In this way, Timbercorp's
forest estate is inherently 'buffered' against short-term water
deficits.

Tree crops, such as blue gums, are a long-term crop (8-12 years) and,
as such, are likely to experience a variety of climatic conditions
during the length of a single rotation.

In some years, rainfall events may be below the long-term average. In
other years, however, rainfall may be well above the average so that
growth rates may exceed that achievable in an 'average' year. In
effect, short-periods of drought in a tree's life can often be
compensated for by periods of wet weather across the rotation length.

Timbercorp is taking a proactive approach to addressing drought
issues. We are presently a large funding partner to a major project
being conducted by CSIRO which investigates how plantation blue gums
utilise water. We will use the results obtained from the study to
further improve our ability to avoid serious drought impacts,
including through the development of improved site assessment
techniques, spacing regimes and nutritional programs. Importantly,
this project will provide Timbercorp with a capacity to model the
impacts, both positive and negative, of rainfall events that deviate
from average conditions.

HORTICULTURE

Timbercorp's olive groves and almond orchards are watered by
state-of-the-art micro-irrigation systems. As the trees in each of
the projects are not near maturity, we have access to sufficient
water to meet all of our requirements for this season.

It is worth noting that, even if we had not received our required
allocation, horticulture is a high-value and intensive form of
agriculture. Therefore, we are better able to absorb any costs of
acquiring any temporary water (if required) than lower-value farming
activities such as grazing or cropping would be.

OLIVE GROVES

Over the irrigation season, which runs from 15 August 2002 to 15 May
2003, the Goulburn-Murray Valley Water Authority announces each week
a progressive water right allocation. Timbercorp receives an
allocation of water to feed its olive grove expressed as a percentage
of the permanent water rights that we own. We call this our 'water
right'. We have already been allocated a sufficient proportion of our
water rights to meet all of our requirements until May next year.

ALMOND ORCHARDS

In relation to our almonds, the Sunraysia Rural Water Authority has
informed us that we will receive 100% of our water rights this year.

If you would like to discuss any of these issues further, please
don't hesitate to contact your local Timbercorp Manager on 1800 628
188.