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Masisa Executes Put Option with Sonae Industria and Retains Argentinian Forests
Santiago, Chile, 01 July 2008 -- /PRNewswire/ -- On 15 January 2008, Masisa and Brascan Brazil Ltda. signed a share purchase and sale contract in which Masisa acquired a 45.68% equity participation in the Brazilian company Tafibras Participaciones S.A., and indirectly acquired a 37% equity participation in Tafisa Brazil S.A, the Brazilian affiliate of Tafibras. The transaction price was USD 70 million.

Masisa and Sonae were not able to reach a satisfactory agreement to merge because of essential differences in the terms and conditions of the merger. Therefore, Masisa and Sonae have ended the negotiating process.

In accordance with signed agreements between Masisa and Sonae, today the company has notified Sonae of the execution of a Put Option that obligates Sonae to purchase Masisa's 45.68% equity participation in Tafibras for approximately USD 75 million. The purchase and sale contract will be executed on 31 July 2008.

The execution of the Put Option will have no significant effects on the company's net income, and the funds will be used to pay down debt.

Masisa retains its forestry assets in Argentina.

Masisa will retain its forestry assets in Argentina, corresponding to approximately 38,000 hectares of pine and eucalyptus plantations, located in the Argentinean provinces of Entre Rios and Corrientes.

As announced in June 2007, Masisa agreed to the sale of 90% of its shares in Forestal Argentina S.A. (FASA). The buyers were the Chilean investment firm Los Boldos S.A. (80%) and GrupoNueva S.A. (10%), Masisa's majority shareholder. The agreement was subject to the normal due diligence conditions for this type of transaction, and especially to the authorization of the mentioned agreement by the Argentinean National Boarders and Safety Zones Commission.

As of 30 June 2008, the Argentinean National Boarders and Safety Zones Commission had not yet authorized the transaction, and therefore the contractual date for the fulfillment of the agreement has expired. Therefore, Masisa will retain its equity participation in FASA.

About Masisa

Masisa is a leading furniture and interior architecture board production and marketing company in Latin America. It owns forest assets in most of the region, thereby guaranteeing the raw material for its board business. Masisa's value proposal is to be a reliable brand and a company close to all its stakeholders, anticipating market needs by means of product and service innovation, and operating responsibly towards society and the environment.

Masisa has 13 production plants in Chile, Argentina, Brazil, Venezuela, and Mexico, all of which will have the ISO 14,001 and OHSAS 18,001 certification. Masisa is currently building an MDP plant in Montenegro, Brazil, that will have an annual production capacity of 750,000 cubic meters of MDP and an annual melaminating capacity of 300,000 cubic meters. This plant will be the company's largest plant in Latin America, and will mainly supply the Brazilian market.

Masisa has three other divisions that operate in synergy with its core board division: forestry, solid wood, and retail.

Masisa is a publicly traded corporation and its shares are traded on the Santiago Stock Exchange. The company had total sales of approximately US$ 966 million in 2007.

Source: Masisa S.A.

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