KURA Kurawood

    KURAWOOD PLC                                  

                                TRADING UPDATE                                 

The Board of Kurawood plc (the "Company") provides the following update on
trading:

Since reporting its interims to 31 March 2008, capital expenditure on the
300,000 m3 capacity facility in New Zealand has increased to reach �446,482
(six months to March: �189,673) with a further �40,000 immediately budgeted to
optimise the operation of the facility.

Given the delay in achieving forecasted sales, exacerbated by the continued
overall negative economic sentiment found in the UK, administrative expenditure
since the end of March has continued to be handled tightly. As a result of the
delay in sales, the balance of cash used to finance ongoing general
administrative expenditure has not been supplemented from cash generated from
trading activities as anticipated. The directors of the Company have each
agreed to defer their salaries until such time as they consider it prudent to
pay them.

The interims to 31 March 2008 reported current cash, cash on deposit and cash
equivalents of �2.8 million of which �2 million is held on deposit and may only
be utilised to finance recoverable working capital and trading activities. The
directors estimate cash which can be used for non-trading activities to be �0.3
million at present.

As a result, the directors have undertaken a comprehensive review of the
Company's ongoing administrative expenditure requirements and are in
discussions with Fox Capital Limited (a company controlled by Justin Martin and
Roy Tilleard, both directors of the Company and therefore a "related party" as
defined by the AIM Rules) concerning further financing to support the ongoing
non-trading activities of the Company. Such funding should enable the Company
to continue to trade through to the end of the following financial year ending
September 2009 without the need for external financing. The Company will keep
the market informed of developments.

Enquiries:

Justin Martin, Kurawood plc Tel: 01624 820 040

James Caithie, Dowgate Capital Advisers Limited Tel: 020 7492 4777

Ruari McGirr/Mark Anwyl, St Helen's Capital plc Tel: 020 7628 5582



END

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