Offer Lapsed

RNS Number:2575E
European Forest Resources Acq Ltd
21 September 2007


Not for release, publication or distribution, in whole or in part, in or into
the United States, Canada, Australia or Japan.

FOR IMMEDIATE RELEASE

21 September 2007

                              Lapse of cash offer

                                       by

                 European Forest Resources Acquisition Limited

                                      for

                             Highland Timber P.L.C.



The Board of European Forest Resources Acquisition Limited (the "Offeror") today
announces the lapse of its cash Offer for the entire issued and to be issued
ordinary share capital of Highland Timber P.L.C. (the "Target").

The Offer was made conditional, inter alia, upon the resolution to approve the
FIM Offer being defeated at an EGM of the Target convened for 20 September 2007.
The resolution to approve the FIM Offer was passed on a poll of Shareholders
at the EGM and, as such, the condition to the Offer set out above has not been
fulfilled.  The Offeror has, therefore, obtained the approval of the Panel to
lapse the Offer and has decided to do so with immediate effect.

As the Offer has now lapsed, Shareholders have ceased to be bound by any
acceptances made and the Offer has ceased to be capable of further acceptance.

The Form of Acceptance, share certificate(s) and/or other document(s) of title
received from Shareholders who had accepted the Offer will be returned by post
within the next 14 days, at the risk of the person entitled thereto, to the
person or agent whose name and address outside the United States, Canada,
Australia or Japan was set out in the relevant box in the Form of Acceptance or,
if none was set out, to the first-named or sole holder at his registered address
outside the United States, Canada, Australia or Japan. No such document will be
sent to an address in the United States, Canada, Australia or Japan. Capita
Registrars will immediately give instructions to Euroclear to transfer all
Shares held in escrow balances and in relation to which it is the Escrow Agent
for the purposes of the Offer to the original available balances of the
Shareholders concerned.

Capitalised terms used in this announcement shall have the meanings given to
them in the Offer Document dated 12 September 2007, unless otherwise defined in
this announcement.


END


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