for furniture manufacturing and marketing company in Latin America, today 2006, amounting to US$216.5 million, driven by higher prices of wood * The gross margin on sales improved, increasing from 22.3% to 24.

7% compared with the same quarter in 2006, mainly driven by the Company's 2007, accounting for 14.2% of sales, which was slightly lower on the first quarter of 2006 when they accounted for 13.2% of sales.

This was * Operating income increased by 17.6% on the same quarter in 2006, amounting to US$22.7 million, boosted by a higher sales margin (on * First quarter net income was US$3.

2 million, which was a 177.3% increase * The Company had a suitable operating performance, which was reflected by quarter of 2007, thus exhibiting an improvement when compared with the * As part of its strategic plan, in the US market Masisa has decided to focus on its commercial activities. This is why the MDF mouldings plant in Charleston was closed down in February, 2007 (capacity of 36,000 m3 a of at least US$3.

0 million, excluding the 2007 restructuring costs. The USA (due to the slowdown of the real estate market in the United States, some the period, and so did Brazil with a 22.3% increase in sales amounting to * Particleboard (PB) sales were also up, and increased by US$4.

2 million on account of a price increase across most of the markets, mainly in Venezuela, Peru, Chile and Argentina with rises of 33.6%, 25.5%, 11.

9% and 9.0%, respectively, which offset the lower volumes sold (-5.7%).

The lower Chile due to maintenance at the Mapal plant, which was carried out in the first quarter of 2007, (ii) lower demand from industrial clients in Chile competition in the Colombian market, where one of the Company's main discounts, and this product competes directly with particleboards (25.8% drop in volume). Due to the adverse demand conditions in the United States, OSB commercial terms.

OSB sales have been re-routed from the United States, mainly to Brazil, which accounted for 46.5% of the total OSB sales in the first quarter, which was a 43.3% increase in the total sales in that market compared with the first quarter of 2006 amounting to US$4.

7 million. There were higher OSB sales in Venezuela and Argentina, with increases of US$0.8 million and US$0.

4 million, respectively, which reflects the commercial endeavors to open due to a 9.7% drop in volume in the United States, along with a 5.8% price decrease.

Sales of MDF mouldings were down US$2.4 million (-17.7%), due to a 28.

8% drop in the volume sold in the United States, which could not be offset by an 11.7% price increase in that market. The drop in the sales volume of MDF profitability of its exports, thereby sacrificing volume.

This volume was marketed as boards in Latin American markets, where demand remains strong for by a 15.0% decrease in the volume sold, which was not fully offset by a 9.6% price increase.

Such drop in the sales volume was due to inventories corresponding to 2005 production being sold in 2006. Door production rates have remained steady in 2007 compared with the first quarter of 2006. The by a 32.

4% drop in volume, which could not be fully offset by a 10.4% price increase. This drop is mainly explained by the lower green sawn lumber exports to Mexico, which have had to stop due to regulatory changes.

Green sawn lumber can now no longer be exported to Mexico, and the Company has therefore partially and increasingly replaced such exports with dry lumber. In fact, March exports increased by 57.2% when compared to those of February, totaling 14,143 cubic meters.

Another reason for the lower sales volume was the lower production stoppage in Venezuela, where the sales volume dipped 7.8%. The greater MDF availability in Chile, due to the lower demand from moulding producers, was re-routed via exports to markets in Peru, Colombia and Mexico.

industrial customers and the maintenance stoppage at the Mapal plant, along conditions in the United States, OSB exports from Brazil to the United States are no longer attractive in commercial terms. OSB sales have been re-routed mainly to Brazil, which accounted for 46.5% of the total OSB sales in the first quarter, which was a 6.

0% increase in the total sales in that market compared with the fourth quarter of 2006 amounting to US$4.7 million. There were higher OSB sales in Venezuela and Argentina, with increases of US$0.

4 million and US$0.2 million, respectively, reflecting the commercial endeavors main reason for the decrease in consolidated sales, mainly on account of the sales volume plummeting 28.7% in the US market.

This is explained by prices remaining relatively high. This has been part of the Company's commercial strategy to focus on maintaining export margins at attractive levels, thereby sacrificing volume. This volume was sold as boards in the different markets in Latin America.

Sales of fingerjoint mouldings fell US$1.2 million, mainly due to lower prices (-17.0%) in the United States, due to the slowdown in the construction industry.

Nevertheless, there was an increase in the sales volume * Sawn lumber had a stable level of sales, which only increased by US$0.1 increase, offset in part by a 2.3% drop in volume.

2007, which was an increase of US$3.4 million (+17.6%) on the first quarter of 2007, which was an increase of US$6.

1 million (+12.9%) on the same quarter of margin was higher, increasing from 22.3% in the first quarter of 2006 to 24.

6% OSB business, due to the slowdown in the construction industry in the United States along with cost pressures during the period, mainly resins and power, manufacturing cost. The Company was able to transfer such cost pressures to prices, which has enabled it to recover its consolidated gross margin as a * Drop in sales of all the solid wood products (MDF mouldings, fingerjoint mouldings, solid wood doors and sawn lumber). It should be highlighted that the Company raised the prices of (i) its MDF mouldings in 2006, and has in improve its margins of these lines and address, albeit partially, the tough scenario of the construction sector in the United States, which is Masisa's main solid wood product market.

Despite the Company's commercial efforts, cost pressures related to an increase in the price of wood, greater logistical costs due to the higher oil price, the appreciation of the Brazilian real and the Chilean peso, and US$ 1.0 million in non recurring costs related to the The sales and administrative expenses to sales ratio increased slightly, US$2.7 million (+9.

7%) higher than the first quarter of the previous year. The quarter of 2007, which was an increase of US$4.5 million (+24.

9%) on the 2007, which was a decrease of US$0.4 million (-0.8%) on the last quarter of the previous year.

As a percentage of the Company's total sales, the gross consolidated gross margin. This more than offset the higher board production costs in the fourth quarter of 2006, mainly for resins and power (accounting business in the period, due to a price decrease in the US market (-17.1% and - 8.

2%), besides a lower volume of MDF mouldings (-28.7%) in that market. These closure of the Charleston plant (i.

e. inventory write-offs and headcount The sales and administrative expenses to sales ratio improved, dropping Sales and administrative expenses amounted to US$30.8 million, and were US$5.

0 million (-13.9%) down on the fourth quarter of 2006, largely explaining the better consolidated operating income. The lower sales and administrative In line with the increase in sales, mainly driven by the furniture board sales and administrative expenses, the Company's EBITDA was up US$0.

8 million (+2.0%), amounting to US$39.0 million.

The EBITDA margin on sales remained In keeping with the better operating income, the Company had a higher 2006. The first quarter EBITDA was US$39.0 million, which was an increase of of 2006 amounting to -US$16.

8 million. This is mainly explained by higher other non-operating disbursements, which increased by US$4.6 million (+143.

3%) first quarter of 2007. These higher expenses were mainly due to (i) the returned to Proforca (CVG Productos Forestales de Oriente, C.A.

is a state- totaling US$2.3 million, (ii) closure of the Charleston MDF mouldings plant (US$1.9 million) and (iii) the fire of 1,171 hectares of planted forests in Chile in January 2007, which meant the Company had to acknowledge the Non-operating income amounted to -US$16.

8 million, which was a drop of US$6.7 million on the -US$10.1 million of the fourth quarter of 2006.

This is mainly explained by the lower non-operating earnings, which fell by US$3.9 in the first quarter of 2007. This decrease is largely explained by the quarter of 2006.

Moreover, there was a lower financial income of US$4.1 million. These negative effects were in part offset by the lower financial the fourth quarter to US$8.

5 million in the first quarter of 2007. This is drop is mainly explained by the lower non-operating income, mainly arising income tax is mainly explained by higher deferred income taxes and, to a large extent, does not correspond to cash outflows. The Company's total assets amount to US$2,037.

9 million as of March 31, 2007, which is a 1.9% year-on-year increase. These amount to US$507.

7 million, which is a US$48.0 million (-8.6%) drop on March 31, 2006.

This decrease is mainly explained by lower time deposits (- deposits and marketable securities) amounting to US$50.8 million, account receivables of US$136.5 million, inventories of US$198.

6 million and ending March 31, 2007, compared with the same period in 2006: The investment in fixed assets in the twelve-month period ending March 31, 2007, amounted to US$18.8 million, accounting for 154% of the depreciation in These amount to -US$17.1 million, and improved on the -US$20.

6 million of Total assets amounted to US$840.4 million, which was a decrease of US$0.4 million (-0.

04%) on the total assets as of March 31, 2006. Masisa S.A.

's debt with financial institutions amounts to US$296.8 million, which was a US$29.3 million (-9.

0%) drop on March 31, 2006. This million, in Venezuela of US$9.7 million and other affiliates of US$9.

0 million. The proceeds used to pay these debts mainly came from the generation Masisa S.A.

's bonds amount to US$308.7 million, which was a US$21.5 million (-6.

5%) decrease on March 31, 2006. This drop is mainly explained by the start of capital amortization of the A series bonds of UF500,000* Masisa S.A.

's shareholders' equity amounts to US$1,182.1 million as of March 31, 2007, which is an increase of US$45.3 million (+4.

0%) on March 31, The paid-in capital amounts to US$812.9 million, which is a decrease of US$1.0 million (-0.

1%) on March 31, 2006. These are US$212.1 million, which is an increase of US$26.

2 million (+14.1%). This account is mainly the forestry reserve, which amounts to US$201.

1 million. This increase is explained by a higher difference between This amounts to US$157.2 million, which is an increase of US$20.

1 million (+14.6%). This increase is explained by the higher accumulated net income, higher net income for the 3-month period ending on March 31, 2007, amounting to US$3.

2 million against the US$1.2 million at March 31, 2006, i.e.

, an (2) One ADS is equivalent to 50 common shares. The ADS of Masisa (former Terranova) started to be traded on August 5, 2005. The table below describes the main company segments, according to the Investment Activities (20,349) (41,812) TOTAL NET FLOW FOR THE PERIOD: 3,811 20,983 and cash equivalents (19) (6,212) and cash equivalents 47,049 97,858 Note: For rounding-up effects, the sum of the figures stated may differ This press release may contain forecasts, which are different statements from historical facts or current conditions, and include the management's current vision and estimates of future circumstances, industry conditions and the Company's performance.

Some forecasts may be identified by the use of terms such as "may," "should," "anticipates," "believes," "estimates," "expects," "plans," "intends," "forecasts" and other similar expressions. the implementation of significant operating and financial strategies, the direction of future operations, and the factors or trends affecting financial conditions, liquidity, or operating income are examples of forecasts. Such risks and uncertainties.

There is no guarantee that the expected events, trends or results will actually occur. These statements are made based on many assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any changes in such assumptions or factors could lead to the current results of Masisa, and the projected Company activities, to materially differ from current expectations.