(1) Following MTCC’s earlier Press Release dated 3 August 2005 on the above matter, this is to inform that a surveillance visit on Asia Plywood Company Sdn. Bhd. (APC) was conducted by two auditors from the independent assessor, SIRIM QAS
International Sdn. Bhd. (SIRIM QAS) on 11 and 12 August 2005.

(2) The interim report of the surveillance visit has confirmed that APC has not complied
with some of the requirements stipulated in the Requirements and Assessment Procedures for Chain-of-Custody Certification (RAP/COC) with regard to the recording and monitoring of the input of MTCC-certified logs, and the production and exports of plywood which were described as “MTCC-certified” for the period from May 2005 to 29 July 2005. Nevertheless the visit also confirms that APC uses logs which are legally sourced from MTCC-certified forests (i.e. Permanent Reserved Forests which are sustainably managed) as well as legally sourced from non MTCC certified forests (i.e. State Land and Alienated Land which are forested areas  armarked for development purposes and are therefore not sustainably managed).

(3) APC is taking immediate corrective actions to comply with the requirements of the
RAP/COC and these actions will be verified by SIRIM QAS during a follow-up visit.
MTCC will take appropriate measures based on the surveillance report to be submitted by SIRIM QAS.

(4) All relevant parties are kindly requested to take note of the above.