PWPB Gets RM160mil PDS Facility for Expansion and to Re-finance Borrowings

KUALA LUMPUR, April 29, 2005: Priceworth Wood Products Bhd (“PWPB”), a publicly listed investment holding company and its subsidiaries are principally involved in the manufacturing and sale of processed wood products and timber trading, has received a RM160 million private debt securities financing facility (“PDS Facility”) to, amongst others, part-finance expansion and re-finance borrowings.

The agreements for the PDS financing facility were signed between PWPB and RHB Sakura Merchant Bankers Bhd (“RHB Sakura”) here yesterday. RHB Sakura is the principal adviser/lead arranger and facility agent for the PDS Facility.

Mr. Lim Nyuk Foh and Mr. Chok Syn Vun, the Managing Director and Executive Director of PWPB respectively, signed on behalf of the company, while Chief Operating Officer of RHB Sakura Jamelah Jamaluddin represented the investment bank.

In relation to the PDS Facility, a 7-year RM160 million Commercial Paper/Medium Term Note Programme (“Proposed CP/MTN Programme”) will be set up to allow PWPB to tap funds from the debt capital markets from time to time. During the 7-year tenure of the CP/ MTN Programme, PWPB may issue short term commercial papers (“CPs”) and medium term notes (“MTNs”). The issuance of the CPs under the CP/MTN Programme shall be subject to a CP sub-limit of RM40 million and shall be underwritten up to the CP sub-limit.

The proceeds from the issuance of the CP/MTN will be utilised to, amongst others, re-finance the borrowings of PWPB and some of its subsidiaries, to part-finance the purchase and installation of a veneer plant and logging equipment and to fund its debt service reserve account. The veneer plant and logging equipment projects are undertaken by PWPB subsidiaries Priceworth Industries Sdn Bhd (“Priceworth Industries”) and Maxland Sdn Bhd (“Maxland”).

PWPB, which was incorporated on Aug 22, 1996, was listed on the Second Board of Bursa Malaysia on Dec 31, 2001. Its listing status was transferred to the Main Board on Nov 26, last year.

The company’s main businesses include the manufacturing and sale of processed wood products, distribution of log timber, the provision of wood processing services and rental of kiln dry machinery. In addition, it is involved in timber trading, timber extraction contract works, construction and land development.