New Forests Pty Limited Opens First U.S. Office in Washington, DC

Expansion Builds on Leading Investment Expertise in Forestry & Environmental Markets

May 7, 2007

SYDNEY – New Forests Pty Limited announces its expansion into the U.S. market with the establishment of a Washington, DC-based subsidiary, New Forests Inc. Radha Kuppalli has been appointed Director, New Forests Inc., and will be the senior executive responsible for all aspects of the business. Ms. Kuppalli will report to David Brand, Managing Director of the parent company, New Forests Pty Limited, located in Sydney.

“New Forests’ U.S. expansion is based on our view that there is growing demand for our specialized investment management and advisory services beyond the Australasian region.” says Brand.

The U.S. subsidiary has been established to meet the investment needs of New Forests’ increasingly international clientele and to access rapidly growing business opportunities in environmental markets. New Forests Inc. will specifically undertake the following activities:

Act as an advisor to Cambium Global Timberland Fund, an AIM-listed investment fund focused on global investments in forestry and environmental assets;
Create new business lines related to emerging forest- and land-based carbon, water and biodiversity conservation markets
Provide advisory services to clients interested in participating in forest and land- based environmental markets, developing financial strategies related to environmental assets and structuring innovative environmental transactions

“We see the U.S. as a key region for innovation in ecosystem-based investment products,” says Kuppalli. “The U.S. has pioneered the use of endangered species banks, wetlands mitigation banks and conservation finance and is now steadily developing new carbon trading markets. These markets are growing rapidly and provide new opportunities for investors.” Washington, DC enables access to both the U.S. and European capital markets, where New Forests sees growing interest in environmental investment. The location also provides opportunities to collaborate with environmental NGOs and access decision- makers related to forestry, climate change and emissions trading policy.

The U.S. subsidiary will work closely with the head office in Sydney, utilizing skills and staff across the organization. Michael Barbara, an analyst from New Forests’ Sydney office, will be joining New Forests Inc. in June 2007. New Forests Inc. will also be hiring new staff for forestry, investment and environmental markets roles.

New Forests Pty Limited

New Forests Pty Limited is a forestry investment management and advisory services firm based in Sydney, Australia. The company’s investment thesis is unique in seeking assets that deliver traditional timber returns, as well as returns from emerging environmental markets and preferences, such as certified timber, carbon, biodiversity and water. In addition to world-leading forestry investment expertise in the areas of acquisitions, modeling, operations, silviculture and ecosystem services, New Forests is at the forefront of developing and commercializing environmental products and evaluating opportunities from emerging environmental markets. The company holds an Australian Financial Services License. For more information, please see www.newforests.com.au

Radha Kuppalli, Director, New Forests Inc.

Radha Kuppalli takes on the role of Director, New Forests Inc. after serving as New Forests’ Manager of Business Development in Sydney. In that role, Radha supported forestry and ecosystem services investment programs of New Forests’ clients and worked on international advisory assignments. She also developed the business plan for New Forests’ expansion to the U.S. and established an initial client base and company direction. Before joining New Forests, Radha was an Analyst at Natsource LLC for two years. At Natsource, she advised clients on a range of issues related to greenhouse gas emissions markets and renewable energy credit markets and developed extensive experience in environmental markets-related investments. Radha has Bachelor of Arts Degrees in International Studies and Economic Theory from American University in Washington, DC, and Masters Degrees in Business Administration and Environmental Management from Yale University's School of Management and School of Forestry and Environmental Studies.