harvest of first eucalypt project

Augers well for the plantation companies.
Have heard that GTP are well pleased with their lot too.
I hold TIM.

TIMBERCORP LIMITED 2003-04-10 ASX-SIGNAL-G

HOMEX - Melbourne

+++++++++++++++++++++++++
Australia's leading agribusiness investment manager, Timbercorp
Limited (ASX:TIM), has negotiated a more profitable outcome for
grower-investors in its inaugural 1992 eucalypt project in Western
Australia.

Timbercorp expects that overall returns to growers in the 1992
project will be more than $7,200 per woodlot, representing an
equivalent pre-tax return on investment of up to 9% per annum (for
growers on the top marginal tax rate).

The pleasing result has been achieved by negotiating a higher price
that will result in an equivalent net stumpage to growers of more
than $36 per cubic metre of wood. The price has been achieved by
processing it directly on behalf of growers and delivering woodchip
rather than logs to the customer.

Chief Executive Officer, Robert Hance, said that the purchase
agreement reached represents a 57% higher price than if the wood had
not been processed and instead sold as standing timber or logs.
Growers will receive progressive monthly payments through to
completion of harvesting, processing and delivery by 31 December
2003.

"We are delighted that the efficiency gains achieved by processing
the wood in-field and shifting the point of sale closer to the end
customer has resulted in reduced processing and handling costs and a
higher net price for growers," Mr Hance said.

"By using our newly developed whole tree harvesting and in-field
chipping system, we are able to harvest and process wood for less
than under a conventional harvest and static chipmill program, while
also increasing the total wood fibre recovered per woodlot."

Although slightly below the yield Timbercorp had forecast in its
prospectus 11 years ago, the 1992 project will result in a
significant profit to 1992 growers.

Mr Hance said that the returns for this project were impacted by
lower yields than expected going forward, with pre-harvest volume
estimates averaging around 200 cubic metres per woodlot.

"Eleven years ago site selection, nutritional analysis and forest
management processes were relatively poor by today's standards - with
seed genetics non-existent. As early as 1993, however, forest
establishment techniques improved markedly with deep-ripping and weed
control."

"Considering the early methodology used in the industry, to deliver
an attractive return on investment in the first harvest of our
earliest project is a very healthy result," he said.

Mr Hance added that the recent woodchip price increase recently
announced by Gunns Limited also applies to Timbercorp growers.

Timbercorp continues its focus on improving seed genetics, site
assessment techniques, pest control, nutrition, and overall forest
management to ensure its plantations have the maximum available
growth opportunities.

"In the past 11 years, we have not increased forecast yields, but we
have improved our techniques.

"Our data shows an improved yield outlook for our 1993 and subsequent
projects as a result of continued research and development, and as
such I believe growers can look forward to further improved profits."

Harvesting of the 1992 project's 527 hectares in south west Western
Australia will commence later this month, with the woodchip to be
shipped under contract to the Marubeni Group in Japan via
Timbercorp's newly constructed receivables facility at the Bunbury
Port.

For more information, please contact:

Timbercorp:
Robert Hance, Chief Executive Officer, 03 8615 1200

Sol Rabinowicz, Executive Director Corporate & Financial Services, 03
8685 1200 or 0417 887 552

Tim Browning, General Manager Forestry, 08 9481 0581