Ireland is a high energy import dependenteconomy, with its over–reliance on fossilfuel imports standing at around 90% anda cost of more than 100 million euro everyweek. It is not sustainable for an openeconomy to be exposed to volatile gasand oil markets to this extent – especiallyin an era of rising energy prices.

Wood provides a sustainable and renewablealternative for power and heat production.Today the latest technology in automatic,

highly efficient wood energy offers thecomfort and reliability of oil or gas systems.Wood heating is used for domestic andcommercial space heating as well as industrialprocess heating.

"Given Ireland’s favourable growing conditionsand its plans to increase forest cover to 17%by 2035, it is clear that we have the potentialto develop an indigenous wood fuel supply fordomestic, industrial and export markets. Ourexisting native forestry resource could provideenough energy to meet over 5% of Ireland’senergy needs by 2020," commented Mr. DavidTaylor, CEO, Sustainable Energy Ireland.

The developing wood energy sector nowprovides Irish forestry with a new market.Thinnings and logging residues now have ause as a wood fuel. The Scandinavians areeven able to harvest tree stumps for energyuse. A further source of wood fuel comes fromwood-processing by-products. The rawmaterial can be processed into clean dry fuelssuch as wood chips and wood pellets for easystorage, transport and use.

For those who have invested in forestry, wood

energy provides additional security by offeringan additional profitable outlet for residues.Opportunities also exist for developers ofwood fuels for heating. The first developmentsin wood energy in Ireland include a wood-fuelled combined heat and power (CHP) plantat Graingers sawmill. Another sawmill, Balcas,in Enniskillen are building a wood pelletproduction plant. A number of wood boilershave been installed including one at the newoffices of Coillte, Newtownmountkennedy. Forforestry growers, investors and wood heatingproviders, wood energy is a profitable andsustainable business.

Countries such as Finland and Denmarkhave been using wood fuel on a large scale(up to 25% of their fuel needs) for some timenow, re-investing millions into their ownlocal economies and creating thousands ofnew jobs.

In the future it is possible that every town inIreland could have a wood power plant –managed and maintained with local labourand powered by locally grown wood, andlocally produced wood pellets and chips.

IRISH FORESTRY SERVICES

UPDATEVOLUME 2, ISSUE 1 AUG 2004

Mr. David Taylor, CEOSustainable Energy Ireland

• 9%* projected per annum TAX FREE • Minimum Lump Sum investment €750• 10 year investment period• Low Risk, Asset-backed investment• Managed by Ireland’s largest private forest managers• Shares are transferable

For further information or to obtain your copy ofthe Prospectus now, contact:

The Tenth Forestry Investment Plan PLC,Eblana House, Eblana Avenue,Dún Laoghaire, Co. Dublin.Tel: 01–284 1777 Fax: 01-284 5195Email: info@irish-forestry.iewww.irish-forestry.ie

Providing you with continuousinnovation in Irish forestryinvestment

*Past performance is no guarantee of future returns

The Tenth Forestry Investment Plan PLC will launchin September and you will automatically recieve a copyof the Prospectus

Invest in Real GrowthTHE TENTH FORESTRY INVESTMENT PLAN PLC

Wood Energy A New Market for Irish Forestry

77 Strand Road, Sandymount, Dublin 4. Telephone: +353 1 206 0230. Facsimile: +353 1 206 0231 e-mail: info@lacywalsh.ie

Personal and Corporate Lawyers. Solicitors to the Forestry Investment Plan.Specialising in Conveyancing and Private Client Work.

LACY WALSHL A C Y W A L S H S O L I C I T O R S

plants (CHP) which generate three megawattseach from natural gas, representing a savingon emissions of greenhouse gasses a year.

There are also CHP units operational in twolocal hotels. The Tower Hotel and WoodlandsHotel both use CHP for the majority of theirelectricity and heating requirements. Eachunit produces 95kW of electricity and160kW of heat hourly. Savings to both hotelsare in the region of €40,000 a year with asaving on CO2 emissions in the region of590 tonnes per annum from each hotel.

SmartPly, which manufactures oriented strandboard for the construction industry from forestthinnings supplied by its parent Coillte, hasinstalled a 55 megawatt plant whichgenerates heat for its processes from wastewood-dust. Hasbro, makers of toys andgames, has also installed an efficientrefrigeration system.

Natural Power Supply, a new companywhich specializes in bio-mass energy fromrenewable wood crops and wood-industryby-products to provide heat to offices,schools, and other large buildings, hasrecently commissioned the country’s firstdistrict heating system powered by willow-chips at its offices at Ballymountain.

Seed Technology Ltd., also located atFerrybank, was recognised for its pioneeringwork in energy crop research and productiontrials, investigating the potential energy to beachieved by willow, hemp, rape-seed andother ‘fuel’ crops.

Considerable energy savings have beenachieved by Waterford County Council indeveloping low energy buildings at TankfieldTramore, Waterford County Council are alsodeveloping a low energy social housingproject in Tramore.

Waterford County Council, Waterford CityCouncil and Tramore Development Trust, are

also to be commended for the setting upof Waterford Energy Bureau, which is aregional energy office set up to activelypromote and assist the development ofenergy efficiency and renewable energytechnology throughout the county. WaterfordCity Council have also secured funding forthe installation of solar water heating andlandfill gas CHP plant for the redevelopmentat Waterford Regional Sports Centre.

Waterford Institute of Technology hasinvested heavily in passive solar energyto help reduce the energy bill for its newinformation technology building.The many developments outlined abovecontribute significantly to Waterford beinga more sustainable community and futuredevelopments will help secure the county’splace as a leader that is gaining by beingenvironmentally progressive.

Waterford Chamber of Commerce PresidentLiam Fennelly says of the initiative"Waterford Chamber are delighted to be ina position to provide valuable support,advice and assistance to member companieswho are facing carbon taxes in the nearfuture. We want our members to not only befully informed of the alternatives to fossil fuelsbut to be a position to embrace theserenewable energy technologies".

Waterford leads therace to becomeIreland RenewableEnergy Capital

The Minister for the Environment, Mr. MartinCullen TD launched Waterford’s bid tobecome the renewable energy capital ofIreland with a tour of a number of innovativeand technologically advanced facilities inindustry, business, education and localauthorities.

The project which is aimed at highlightingand expanding the use of renewable energysources in the south east, has been spear-headed by Waterford Chamber ofCommerce, which has established a new‘Renewable Energy Task Group’.

The Minister paid tribute to the work beingdone at present in Waterford in making thecity more self-sufficient in energy terms.

"People often think that renewable energymeans wind energy. However, it is clear fromthe diverse and imaginative renewableenergy systems which are being developedin the Waterford area that this is not thecase. This region is now being seen as themost dynamic and progressive in the countrywhen it comes to developing renewableenergy. As Minister with responsibility for theEnvironment, it makes me proud to see thestrides which the Waterford community ismaking and I congratulate the Chamber ofCommerce on their initiative to makeWaterford the renewable energy capital ofIreland," said Minister Cullen

The Minister acknowledged the pioneeringwork of such companies as WaterfordCrystal and Bausch & Lomb, both of whichhave invested in combined heat and power

3 Vesey Terrace, Lucan, Co. DublinTel: 01 6100828, Fax: 01 6100983,

Web: www.fel.ie

Forest Management Consultantsto the Irish Forestry Funds

A Forest Service Approved Company

Natural Power Supply

CMB Design, 7 St. Stephens Green, Dublin 2.Tel: 01-679 9805, Fax: 01-679 9954, Web:

www.cmbdesign.ie

Packaging - Corporate Identity - Annual Reports - Direct MailMulti-Media - Web - TV - Corporate Videos - Advertising

Sale and Transfer of SharesIn order to amend the Share Register it is essentialthat a Stock Transfer Form be completed and signedby the Transferor and then submitted to the Registrar,The Irish Forestry Funds, Eblana House, EblanaAvenue, Dún Laoghaire, Co Dublin.

The following documents are requiredif selling or transferring shares:

1. Original Share Certificate 2. Stock Transfer Form (available to download fromour website at www.irish-forestry.ie/onlinedocs.htm)3. A bank draft made payable to the RevenueCommissioners for1% of the transaction value whichis the Stamp Duty based on the transfer value, ormarket value of the shareholding. The Stamp Duty ispayable by the purchaser or new owner of theshareholding. Bank drafts must be made payable tothe Revenue Commissioners. Please Note: This is nota handling charge by the Irish Forestry Funds.

Only when all the above documents are receivedand properly completed can we process thetransfer for you.

This issue does not apply to you where you havepurchased shares on behalf of another person andthe shareholding has always been in thatindividual’s name.

Alder TreeFearnóg Common alder (Alnus glutinosa (L.) Gaertn.)

Distribution & Provenance

Common or black alder is a nativetree to Ireland and has a naturalrange extending right across centralEurope and as far east as theCaspian sea. There are manydifferent species of alder distributedthroughout the northern hemispherebut common alder is the only onenative to Ireland. Alder is a pioneerspecies and is thought to have beenone of the first species to recoloniselarge parts of Ireland after the lastice age 10,000 years ago. Aldertransplants planted in Ireland arevirtually all derived from local seedsources.

Silviculture & Managementin Ireland

Alder grows on wet sites, typicallyalong lake, stream and river banks,but not exclusively so. It is a hardyspecies, tolerant of late spring andearly autumn frosts and, beingrelatively deep-rooting, is alsotolerant of wind. However, itdislikes any form of drought andyoung trees can die in droughtconditions. It regenerates naturallyon damp, muddy ground, the seedbeing carried both by wind and onwater. Alder is a pioneering, lightdemanding species and grows very

vigorously in its early years. It willrarely grow taller than 20 metres inheight and is a relatively short livedtree, attaining full developmentwithin 30-40 years.

Non Timber Benefits

Common alder is capable of fixingatmospheric nitrogen and istherefore a useful species in soilimprovement. The same featuremakes alder a very useful ‘nurse’ forgrowing in mixture with other morecommercial species. As well as providing nitrogen for theaccompanying species it is also avery effective provider of shelter,which is of critical importance in theestablishment of other, particularlybroadleaved, species.

Position in Irish Forestry

Alder was abundant in historicaltimes and archaeological recordsfrom the late Bronze Age and IronAge show that alder was used in themanufacture of shields. Its Irishname, Fearnóg, frequently featuresin Irish place names such as Ferns inCo. Wexford and Ferney in Co.Fermanagh. Alder is now a grant-aided species and there are currentlyapproximately 2 million aldertransplants produced and sold byIrish nurseries each year.

Uses & Markets

Alder wood has a coarse texture andturn slight reddish brown whendried. It is not commonly used as astructural timber but is becomingincreasingly popular in furnituremaking and in door manufacture.As a native timber it has manytraditional uses such as in charcoalproduction, turning leather tanningand musical instrument manufacture.In the Netherlands, alder is thetraditional timber used in themanufacture of clogs.

(Source: Forest Service, Dept.of Agriculture, Food & Forestry)

CHANGE OF ADDRESSIrish Forestry Funds and Forestry Investment Plans, Eblana House, Eblana Avenue, Dún Laoghaire, Co. Dublin

Tel: +353 (0)1 2841777 Fax: +353 (0)1 2845195 E-mail: info@irish-forestry.ie Web: www.irish-forestry.ie

It is important that shareholders notify the Registrar in writing if changing address,remembering to include Share Certificate Numbers on all correspondence.

Please let us know if you have received more than one copy of this newsletter.If you do not wish to remain on our mailing list please contact us and we will remove your details immediately.

Eagles Flying -Birds of Prey in IrelandBirds of Prey comprise a distinguishedgroup in the avian world that includeseagles, hawks, falcons, buzzards and theold-world-vultures. Some would include theowls in that group, but like the new-world-vultures, they are not related to theaforementioned groups of birds. Like these,they are flesh-eating birds who are just"working" as a bird of prey.

Birds of Prey are also known as "raptors".Residing at the top of the food chain,raptors are uniquely adapted for capturingand dismembering live prey. Their featurestypically include sharp-pointed claws,called talons and a roundish, sharp beak.Predators, like birds of prey, usuallycapture weak and sick animals as they areeasier to catch. In this way predators helpto keep the population healthy bypreventing the spread of diseases or byeliminating animals with a lower qualitygenome.

Most important for the decline of specieshas been direct and indirect humanpressure, especially hunting and habitatchange. The advance of technology in the19th century - the arrival of breech-loading guns, sophisticated traps andpoisons - as well as the consolidation of agame-orientated demesne system, radicallychanged the nature and effectiveness ofhunting. Most of our birds of prey that came intodirect conflict with these advances fell foulof them.The drainage of formerly extensivewetlands and the clearances of the lastremaining tracts of native forest have beenundeniably important. In this latter instancethe developmental surge of the 17th and18th centuries appears to have beencrucial. The six species that have disappeared fromIreland ( White-tailed Seaeagle, GoldenEagle, Goshawk, Red Kite, Marsh Harrier

and Osprey ) represent half of the totalwhich the country once supported at itsoptimum - and the larger, morespectacular, half at that.

Forests are essential for many species ofbirds of prey, as they use trees for nesting.Some species are exclusively woodland-dwellers such as the sparrowhawk and thegoshawk. The buzzard, the only species ofraptor that came back by itself after nearlya century of extinction, needs old forestsfor breeding, and an open or half-openlandscape for hunting. These medium-sized birds mainly feed on small rodentslike mice, shrews and rats, but parts oftheir diet also are formed by earthwormsand insects. Some specialists among themeven go for bigger animals like rabbits.

If you want to attend the flyingdemonstrations at Eagles Flyinghere are the details:

The sanctuary is located in County Sligo,between Ballymote and Temple House /Ballinacarrow. We are open from April tothe 7th November. The daily Free-FlyingDemonstrations start at 11 a.m. & 3p.m. You have the chance to see differentbirds of prey, from falcons up to eagles,flying right over your head and you caneven touch an Eagle Owl We also have aPet Zoo.

To make special appointments ring087 2110538 or Email to:eaglesflying@utvinternet.comFor more details you can visit ourwebsite: www.eaglesflying.com

Author: Lothar F. Muschketat,Biologist (D.Biol. Msc.),Managing Director of Eagles Flying

The photo shows a male buzzard at theIrish Raptor Research Centre / Eagles Flying.

Application for FinancialStatements to be sent by E-mail

The Directors of the Irish Forestry Funds and Forestry InvestmentPlans are pleased to offer to the Shareholders the option of receivingtheir Annual Financial Statements and Chairman’s Report by e-mail.In considering this option the Directors have taken the followingfactors into account:

1. Reduced costs for the company results in greater profitabilityfor the Shareholders:

• Less Printing Costs • Less Paper costs • Less Postage andPacking costs

2. Less delay in dispatching the Financial Statements andChairman’s Report to the Shareholders

3. Easier storage of accounts and more convenience for the Shareholders

4. Significant environmental benefits and a reduction in wastage

If you wish to receive your Annual Financial Statements andChairman’s Report by e-mail please complete the following and return this form to us by Post or Fax.

The Irish Forestry Funds and Forestry Investment PlansEblana House, Eblana Avenue, Dún Laoghaire, Co. Dublin, IRELANDTel: 01 284 1777 Fax: 01 284 5195 Email: info@irish-forestry.ie

PLEASE COMPLETE IN BLOCK CAPITALS

Please tick: Mr. Mr. & Mrs. Ms. Mrs. Other.

Please enter your Share Certificate Number(s) (if known)

Name:Address:

Phone: Fax:

Email to which you wish to have your Financial Statements sent:

Signature(s):

You may revoke your consent to e-mail communication at any time andrevert to receiving your Financial Statements by post.

If you wish to proceed with this option please ensure that you havesigned this form.