HIGHLAND TIMBER PLC LS-05

Louis Dreyfus Energy Holdings Ltd 04 June 2007 4 June 2007 OFFER FOR FOREST ASSETS OF HIGHLAND TIMBER PLC Louis Dreyfus Energy Holdings ('LDEH') announces that, following a letter of intention dated 4 May 2007 to Highland Timber PLC ('HT') and a subsequent due diligence process undertaken with HT, LDEH has made an offer to acquire HT's forest assets for a total cash consideration of GBP11,100,000 (the 'Offer'). The Offer was made to HT on 31 May 2007 and is subject only to (i) confirmatory due diligence as to title and liabilities and (ii) agreed documentation. LDEH believes that the Offer represents a material improvement over the proposed transaction announced by HT on 18 May 2007. Notwithstanding LDEH submitting the Offer in accordance with the timetable indicated by LDEH to HT, on 1 June 2007 HT informed LDEH that it was not able to consider the Offer due to exclusivity arrangements in place with another party. However, LDEH believes that the Offer represents a substantial benefit for both HT and its shareholders. LDEH is consulting with its advisers and is reviewing its options. This information is provided by RNS The company news service from the London Stock Exchange