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MEDIA RELEASE

24 November 2008

CROWN FORESTRY ANNOUNCE MANAGEMENT CONTRACT COMPANY FOR WEST COAST FORESTS

Crown Forestry announced today that operational management of the Timberlands West Coast forests will be undertaken by PF Olsen Limited on behalf of Crown Forestry from 1 January 2009.

This follows the February 2008 decision¹ by the previous Government that Timberlands was not able to continue on as a State Owned Enterprise.

Crown Forestry General Manager Charles Schell said that following a competitive tendering process PF Olsen had been selected for the task of managing day to day operations on the forest estate based on the depth of their operational experience nationwide, the strength of their proposal for managing these forests and their backup capacity.

"PF Olsen have informed us that they will employ most of the existing Timberlands West Coast staff and that Mr Peter Keach, PF Olsen's National Operations Manager, will undertake the role of West Coast Team Leader until a permanent Branch Manager is appointed to its West Coast operations" said Mr Schell. The timing to get operations underway from 1 January 2009 will be tight and demanding, however Mr Keach said that he was confident that PF Olsen will meet the deadline.

"We will do everything necessary to meet Crown Forestry's requirements including maintaining Forestry Stewardship Council certification for the estate and will ensure that harvesting operations get underway promptly in the New Year to meet log supply commitments to existing Timberlands' customers" said Mr Keach.

Timberlands West Coast Limited Chairman Martin Sawyers said that he was happy with the arrangement and was sure the forests would be in good hands going in to the new year.

¹ For a copy of the Feb 2008 media statement refer contact below

Media Contact:
Lisa Gibbison
Communications Adviser
Ministry of Agriculture and Forestry
04 894 0432
029 894 0432