York Timber Organisation Limited - media release

YORKCOR POSTS 2001 INTERIM results
Better than the trend

The York Timber Organisation (Yorkcor) has reported an attributable profit
of R325 000 for the half year to 30 June 2001.  "Although this was down on
the comparative of R1,5 million for last year, Yorkcor did well to post a
black figure in an industry that on  the whole has been running in the red
for some time," says chairman Solly Tucker.  Earnings per share amounted to
2,9 cents, compared with 13,8 cents per share for the previous year.

Turnover at R33,6 million was on a par with last year's figure. Gearing at
29% (2000: 28%) remained sound and, significantly, liquidity improved from a
ratio of 1,14 to 1,57. Net asset value at the end of the half-year stood at
335 cents per share.
State of the industry

South African sawmillers again had to tackle tough times in the first half
of 2001. Sales volumes for the industry were better by about 4,6%, but
prices hardly moved at all from the low base of the same period in the
previous year.  "The industry should have been out of the woods by now,"
says Tucker.  "Instead, more than 60% of sawmillers in the formal sector ran
at a loss during the period under review. Several have cut back to a four-
day week; others have closed down altogether.

"Nothing has depressed confidence and activity in the past five years more
than the pall of uncertainty cast over the industry about sawmillers' future
for log supplies," says Tucker.  "To be competitive," he stresses, " South
African sawmillers need to invest in new technologies and they need to know
from whom their log supplies will come and on what terms."
Resource entitlement

Yorkcor is vindicating its raw material entitlements in terms of its

valuable "evergreen" sawlog supply contracts.  These have been under threat
since the privatisation process was launched without reassurances to

sawmillers about their rights to a log supply. Yorkcor launched action
against Safcol in the Competition Tribunal for abuse of dominance. Although
interim relief was denied, competition proceedings are still pending.  In
separate proceedings, the Government has been ordered in a recent judgment
of the Supreme Court of Appeal to make Yorkcor a firm, particularised offer
of a minimum volume of sawlogs, which must be made in five-year cycles.
"The Government has still not made the offer it is obliged to make and steps
have been taken to enforce Yorkcor's rights. This is where matters stand at
present.  We live in robust times," says a sanguine Tucker.
Yorkcor's niche

"Not for years has Yorkcor's order book been as full as it is now," says
Tucker. "Prices achieved have been consistently at the top end of the
market, but are still too low for a reasonable return on the risk and
effort.

"Straitened domestic markets and exchange rates that favour exporters, have
prompted us to redouble our quest for business overseas. The early results
in this concerted export effort are encouraging. We expect to be shipping to
certain markets where South Africans have not been before," he says.

"Against the above background, Yorkcor has done well to show a small profit
in the half year. This is a positive result in these challenging times. It
beats industry averages. We have not had to cut back as many other

sawmillers have.  But, in our book, outperforming the industry is not enough
- we aim to flourish," concludes Tucker.

Ends.Yorkcor/ 2001/ mrelease/ 2001 interim results.v2

ISSUED    The York Timber Organisation Limited (Yorkcor)
FOR:

CONTACT:  Solly Tucker (012) 804 9730 / 083 456 9900
FAX NO:   (012) 804 8611
E-MAIL:   Sol@yorkcor.co.za
ISSUED    TISH STEWART PR ASSOCIATES
BY:

CONTACT:  Tish Stewart   (011) 325 4195   Cell:  082 443 6399
FAX NO:   (011) 325-4199
E-MAIL:   Tish@tspr.co.za
DATE:     26 September, 2001