Company Information for M P Evans Group Plc

AIM-MPE

http://mpevans.co.uk

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AIM; MPE

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Company Statement

M.P. Evans Group PLC (formerly Rowe Evans Investments PLC), which is listed on AIM; completed its merger with Bertam Holdings PLC and Lendu Holdings PLC on 2 February 2005. The enlarged Group's assets consist of oil palm and rubber plantations (both majority and minority held) in Indonesia and Malaysia, the latter with real-estate development value, and beef-cattle interests in Australia. The Group's strategy is to exit from its plantation investments in Malaysia within the next five or so years. These assets have, in varying degrees, considerable real-estate value due to their proximity either to the North-South Highway or to conurbations. However, the earnings derived from them are modest and, in the board's view, the time has come when they should be disposed of as and when acceptable prices can be achieved. It is the board's intention to undertake a substantial expansion in Indonesian plantation ventures which should achieve higher returns and will supplement the existing portfolio of majority and minority-held plantation investments in that country. In addition to the expansion in Indonesia, the board's policy is to expand the Group's Australian beef-cattle interests so that, ultimately, approximately 70% of the Group's assets will be in Indonesian plantations and 30% in Australian beef-cattle.

Current Operations

Geographical Spread

Indonesia

Existing mature plantations

The Group has a majority interest in 10,000 hectares of, mainly oil-palm, plantations in Sumatra. These consist of some 7,400 hectares on three estates which are in close proximity, Pangkatan, Bilah and Sennah Estates, in the Labuhan Batu district of North Sumatra. In addition, a 40-tonne-per-hour crude palm oil processing mill was commissioned in 2005 on Pangkatan Estate. Simpang Kiri Estate (2,600 hectares) is located in the south-east corner of the province of Aceh.

The Group also has a substantial interest in two other projects in Sumatra - PT Agro Muko (32%) and PT Kerasaan Indonesia (36%). The former is a 23,000-hectare project in the province of Bengkulu with 16,000 hectares of oil palm, two palm oil mills, 1,800 hectares of rubber and a crumb-rubber factory. Approximately another 1,000 hectares may be plantable. The latter owns a 2,300-hectare estate, Kerasaan, in North Sumatra.

New projects

Bangka Island

The Group has recently invested in a 90% share of an Indonesian company, PT Gunung Pelawan Lestari ("GPL”), which, it is planned, will develop 12,000 hectares of heavily degraded forest land into oil palm over the next three to four years. The other 10%of GPL is owned by an Indonesian businessman, Mr Karli Boenjamin. As at the end of June 2006, approximately 800 hectares have been cleared and planted and it is anticipated that the rate of clearing and planting will accelerate considerably in the second half. In addition, a local smallholders' oil-palm project will be developed, comprising some 4,000 hectares, which will be managed by GPL.

East Kalimantan

As announced on 10 July 2006, agreements were recently signed with an Indonesian partner, Mr Halim Jawan, in relation to the Group's development of 14,000 hectares of land near Samarinda in East Kalimantan. The land comprises heavily degraded forest and is deemed highly suitable for oil-palm cultivation in terms of soil conditions, terrain and climate. As part of the agreement a smallholders' co-operative, comprising a maximum of 6,000 hectares, will be developed in the vicinity of the project and will be managed by the Group.

Malaysia

Until recently, the Group owned six small oil-palm estates in Peninsular Malaysia, totalling around 3,750 hectares which possess, in varying degrees, real-estate development potential. In line with the Group's strategy, referred to above, three of these estates, Sungei Reyla (660 hectares), Lendu (195 hectares) and Beradin (1,085 hectares) have now been sold for the amounts of approximately £4.7 million, £3.9 million and £7.9 million respectively. Also, agreements have recently been signed in relation to the sale of 181 hectares of a fourth estate, Perhentian Tinggi ("PT”), for a total of some £2.6 million. The balance of 745 hectares of Perhentian Tinggi continues to be marketed for sale.

In addition, the Group owns 40% of Bertam Properties Sdn. Berhad which, in turn, owns the remainder of the old Bertam Estate (1,220 hectares) which is currently being developed into housing, industrial and leisure facilities. The Group also owns two small tourist-related projects on Penang Island and a 30% share in Asia Green Environmental Sdn. Bhd., a company that has developed an environmentally-friendly system of turning bunch residue and palm-oil mill effluent into compost.

Australia

The Group owns 29.29% of The North Australian Pastoral Company Pty Limited ("NAPCo"), one of the biggest cattle companies in Australia which owns some 6.4 million hectares of land with a herd in excess of 185,000 head. In addition, the Group owns two, adjoining cattle-fattening properties, Woodlands and Flinton, comprising a total of 19,412 hectares. These have recently been developed in terms of water management and pasture improvement. Once the full benefits of these improvements are realised, this will enable a significant increase in the cattle-carrying capacity to be achieved on the aggregation.

Company Address

3 Clanricarde Gardens
Tunbridge Wells, Kent, United Kingdom TN1 1HQ


Telephone:	01892 516333
Facsimile:	01892 518639
Website:	http://mpevans.co.uk

Additional Address/Key Contact

John F Elliott
3 Clanricarde Gardens, Tunbridge Wells
Kent TN1 1HQ
Tel: 01892 516333 Fax: 01892 518639
Website: www.mpevans.co.uk
Company number: 1555042

Most Recent Statement

26/09/07 - Half-yearly report
13/09/07 - Notification of Interim Results
18/03/07 - Purchase of Australian beef-cattle property, Springmount
08/03/07 - Holding in company
21/02/07 - Directors' share interest

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