2008 June Sales Update
01-July-2008

Timbercorp Limited, is pleased to announce that it expects total project revenues to increase to around $425 million for the year ending 30 September 2008 (2007: $375 million). This follows a sell out of its forestry project to 30 June, which was oversubscribed, to $51 million, up 24% from $41 million last year.

The increased project revenue figure will comprise:

- Recurrent contractual revenues from past projects (annuity style revenues) of $300 million, up from $243 million in 2007.

- New sales revenues for the nine months to 30 June of approximately $128 million, down from $145 million for the full year in 2007 reflecting a reduced number of project offerings this year.

The 2008 sales will contribute to further growth in annuity style revenues towards $330 million in 2009.

Chief Executive Officer, Sol Rabinowicz, said he was extremely pleased with the new sales result having sold out early both the forestry and almond projects and recording the company’s highest level of sales of olives since the project first commenced in 2000.
“Despite tighter market conditions this year due to greater uncertainty in the financial sector, demand for Timbercorp’s projects has remained strong, demonstrating the depth of our distribution and strength of our brand in agribusiness investment,” Mr Rabinowicz said.

“Demand for our forestry project was particularly strong, enabling a significantly higher level of sales than forecast.”

“From July, Timbercorp will focus on a number of new investment products. In particular, we are close to finalising a new forestry project under the new legislative framework, which will be available early in the 2009 financial year.”

“We are also well advanced with our new agribusiness and related funds management products. The $150 million Timbercorp Dairy Fund is currently receiving strong interest with a private placement memorandum due to be released to prospective investors soon,” he said.

“The thematic Agri, Carbon and Energy fund is also expected to be available for investment over the next few months.”

Mr Rabinowicz said that the company expected a full year net profit after tax in the range of $53 million to $57 million. A lower level of new sales than last year and the items listed at the half year profit announcement are expected to contribute to a lower result than the previous year.

Mr Rabinowicz said that the Board has declared a dividend of 1.5 cents per ordinary share fully franked with a record date of 29 August 2008 and a payment date of 15 September 2008.

Additional Information

Forecast FY08 project revenue reconcilliation:

For further information call:
Sol Rabinowicz, Deputy CEO & Executive Director, 03 8615 1200
Matt Trewin, Communications Manager, 0407 684 765