UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

Washington, D.C. 20549

FORM 6-K

~~Report~~REPORT ofOF ~~Foreign~~FOREIGN ~~Issuer~~PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934

~~Pursuant~~For tothe ~~Rule~~month ~~13a-16~~of orJune ~~15d-16~~2003

ofMasisa ~~the~~S.A. (Exact ~~Securities~~name ~~Exchange~~of ~~Act~~Registrant ofas ~~1934~~specified in its charter)

Masisa ~~S.A.~~Incorporated (Translation of Registrant’s name into English)

~~(Exact~~Los ~~name~~Conquistadores of1700 ~~registrant~~Piso 12, Providencia asSantiago, ~~specified~~Chile (Address inof ~~its~~principal ~~charter)~~executive offices)

~~Masisa~~Indicate ~~Incorporated~~ by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

~~(Translation~~Form of20-F Form ~~Registrant's~~40-F ~~name into English)~~

~~Los~~Indicate ~~Conquistadores~~by ~~1700~~check ~~Piso~~mark ~~12,~~whether ~~Providencia~~the ~~Santiago,~~registrant ~~Chile~~ by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2 (b) under the Securities Exchange Act of 1934.

~~(Address~~Yes No ~~of principal executive offices)~~

~~Indicate~~If byYes ~~check~~is ~~mark whether~~marked, ~~the~~indicate ~~registrant~~below ~~by furnishing~~ the ~~information~~file ~~contained~~number inassigned ~~this Form is also thereby furnishing the information~~ to the ~~Commission~~registrant ~~pursuant~~in toconnection with Rule 12g3-2 (b): ~~under Securities Exchange Act of 1934.~~ 82-

On May 14th, 2002 the registrant filed a report with the Superintendencia de Valores y Seguros de Chile (Chilean Superintendency of Securities and Insurance) which included information of the registrant’s financial statements and results of its operations for the three month period ended on March 31, 2003. Attached is a free translation of the financial statements and results of operations from the original document in Spanish. The financial information included in this report was prepared according to the accounting principles generally accepted in Chile and does not include reconciliation to generally accepted accounting principles in the United States. SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

MASISA S.A.

(Date: ~~Free~~September ~~translation~~10, ~~from the~~2003 ~~original~~Conf: in/s/ ~~Spanish)~~Carlos Marín Name: Carlos Marín Chief Financial Officer

	As of March31,
	2003	2002
CONSOLIDATED BALANCE SHEET	ThCh$	ThCh$
ASSETS
CURRENTS ASSETS
Cash and Banks	2,557,846	2,966,357
Time deposits	6,908,088	2,437,794
Marketable securities (net)	1,543,059	571,200
Accounts receivable (net)	33,829,687	26,498,430
Notes receivable (net)	5,182,840	6,196,598
Sundry debtors	3,715,291	3,304,672
Notes and accounts receivable from related companies	1,541,754	5,486,007
Inventories (net)	49,073,018	34,972,035
Recoverable taxes	10,048,911	4,204,699
Prepaid expenses	2,408,947	1,448,646
Deferred taxes	331,022	344,015
Other current assets	4,417,441	3,055,997
Total current assets	121,557,904	91,486,450
FIXED ASSETS
Land	45,586,807	40,940,190
Buildings and infrastructure	74,463,795	62,304,392
Machinery and equipment	340,872,527	287,837,859
Other fixed assets	116,552,463	130,082,047
Asset reappraisal	0	0
Less: depreciation	(121,839,002)	(102,253,771)
Total fixed assets	455,636,590	418,910,717
OTHER ASSETS
Investments in related companies	202	0
Investments in other companies	137,601	156,191
Goodwill	941,586	1,163,476
Negative goodwill	(1.392,644)	0
Long term receivable	1,023,980	1,306,414
Notes and accounts receivable from related companies	2,174,352	2,247,624
Deferred taxes	0	0
Intangible assets	0	0
Amortization (less)	0	0
Other Assets	109,211,349	94,969,387
Total other assets	112,096,426	99,843,092
TOTAL ASSETS	689,290,920	610,240,259

~~The~~On ~~accompanying~~August ~~Notes~~29th, N°2003 1the toregistrant ~~27 form~~filed ana ~~integral~~report ~~part~~with the Superintendencia de Valores y Seguros de Chile (Chilean Superintendency of ~~these~~Securities ~~consolidated~~and Insurance) which included information of the registrant’s financial statements and results of its operations for the six month period ended on June 30, 2003. Attached is a free translation of the financial statements and results of operations from the original document in Spanish. The financial information included in this report was prepared according to the accounting principles generally accepted in Chile and does not include reconciliation to generally accepted accounting principles in the United States.

	As of March 31,
	2003	2002
CONSOLIDATED BALANCE SHEET	ThCh$	ThCh$
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Due to banks and financial institutions short/term	18,558,687	31,642,518
Short/term portion of long/term liabilities to banks and financial
institutions	14,726,971	5,861,848
Short-term portion of long term Bonds	19,843,024	1,435,692
Other long/term liabilities due within one year	229,391	1,671,843
Dividends payable	115,047	101,947
Accounts payable	16,281,254	9,582,161
Notes payable	0	0
Sundry creditors	707,638	434,488
Notes and accounts payable to related companies	1,466,273	3,708
Provisions	2,732,819	3,225,814
Withholdings	1,484,343	580,334
Income tax	3,307,307	906,511
Unearned income	30,989	147,307
Deferred taxes	0	0
Other current payable	1,009,562	1,243,479
Total current liabilities	80,493,305	56,837,650
LONG-TERM LIABILITIES
Due to banks and financial institutions	202,617,765	152,162,725
Bonds Payable	32,920,200	47,657,694
Notes payable	0	0
Sundry creditors	2,232,019	4,088,311
Notes and accounts payable to related companies	0	0
Provisions	21,420	0
Deferred taxes	5,426,250	4,689,813
Other long term payable	3,326,343	0
Total long-term liabilities	246,543,997	208,598,543
Minority interest	44,417,703	41,818,502
SHAREHOLDERS' EQUITY
Paid/up capital stock	170,326,091	171,649,012
Capital revaluation reserve	851,630	(686,595)
Share premium account	0	0
Reserve on reappraisal of fixed asset	0	0
Other reserves	38,032,810	23,758,120
Accumulated deficit for development period (less)	0	0
Retained Earnings	108,625,384	108,265,027
Reserve future dividends	84,610,853	69,626,519
Accumulated profits	23,938,783	34,629,139
Accumulated losses (less)	0	0
Net income for the period	75,748	4,009,369
Interim dividends (less)	0	0
Total shareholders' equity	317,835,915	302,985,564
Total liabilities and shareholders' equity	689,290,920	610,240,259

~~The~~MASISA ~~accompanying Notes N° 1 to 27~~S.A. ~~form~~(Free antranslation ~~integral~~from ~~part~~the oforiginal ~~these~~in ~~consolidated financial statements.~~ Spanish)

	For the three-month period
		As of June 30,
	Ended March 31,
CONSOLIDATED BALANCE SHEET		2003			2002
	2003	2002
		ThCh$			ThCh$
CONSOLIDATED STATEMENT OF INCOME	ThCh$	ThCh$
ASSETS
Sales	45,850,893	37,211,352
CURRENTS ASSETS
Cost of sales (less)	(36,129,579)	(24,967,111)
Cash and Banks			9,219,605			2,197,295
Gross margin	9,721,314	12,244,241
Time deposits			3,281,284			717,371
Selling and administrative expenses (less)	(7,115,801)	(4,659,684)
Marketable securities (net)			0			0
OPERATING RESULT	2,605,513	7,584,557
Accounts receivable (net)			34,923,910			27,776,233
Financial Income	2,734,529	2,501,030
Notes receivable (net)			4,674,482			5,338,252
Income on investments in related companies	0	0
Sundry debtors			3,150,632			3,905,210
Other non operating income	166,826	2,323,800
Notes and accounts receivable from related companies			2,669,087			5,317,725
Loss on investments in related companies (less)	(35,009)	0
Inventories (net)			51,649,033			37,445,223
Amortization of goodwill (less)	(56,339)	(55,602)
Recoverable taxes			8,162,888			4,719,006
Financial expenses (less)	(5,014,102)	(3,158,732)
Prepaid expenses			1,930,456			1,400,883
Other non/operating expenses (less)	(259,811)	(79,541)
Deferred taxes			948,103			429,835
Price/level restatement	(212,512)	942,784
Other current assets			21,958,341			1,701,458
Exchange Differences	570,022	(6,013,342)
Total current assets			142,567,821			90,948,491
NON /OPERATING RESULT	(2,106,396)	(3,539,603)
FIXED ASSETS
Result before income taxes and minority interest	499,117	4,044,954
Land			44,400,409			42,284,880
Income taxes (less)	(279,863)	(1,373,309)
Buildings and infrastructure			73,001,925			64,304,366
Consolidated Profit (Loss)	219,254	2,671,645
Machinery and equipment			334,526,591			294,999,692
Minority interests	(161,592)	1,337,724
Other fixed assets			115,233,284			144,121,014
Amortization negative goodwill	18,086	0
Asset reappraisal			0			0
NET INCOME	75,748	4,009,369
Less: depreciation			(125,090,233	)		(108,198,822	)
Total fixed assets			442,071,976			437,511,130
OTHER ASSETS
Investments in related companies			202			127,678
Investments in other companies			6,053			6,052
Goodwill			890,531			1,115,762
Negative goodwill			(1.382,764	)		(602,405	)
Long term receivable			983,756			1,186,228
Notes and accounts receivable from related companies			2,174,373			2,368,540
Deferred taxes			0			0
Intangible assets			0			0
Amortization (less)			0			0
Other Assets			3,158,224			21,828,736
Total other assets			5,830,375			26,030,591
TOTAL ASSETS			590,470,172			554,490,212

The accompanying Notes N°º 1 to 27 form an integral part of these consolidated financial statements.

	For the three-month period
	ended March 31,
	2003	2002
CONSOLIDATED STATEMENT OF CASH FLOW	ThCh$	ThCh$
Cash flow from operating activities
Collection of accounts receivable	54,685,705	42,522,961
Interest income receivable	1,515,242	1,488,761
Dividends and other distributions received	0	0
Other income	917,176	517,383
Payments of suppliers and personnel (less)	(50,900,357)	(43,328,691)
Interest paid (less)	(1,750,911)	(1,996,171)
Income tax paid (less)	(334,341)	(289,325)
Other expenses paid (less)	(255,722)	(471,222)
V.A.T. and similar paid (less)	(1,339,382)	(592,748)
Net positive (negative) cash flow from operating activities	2,537,410	(2,149,052)
Cash flow from financing activities
Issuance of cash shares	0	0
Loans drawn	28,728,560	13,030,043
Bonds issued	0	0
Documented loans from related companies	0	0
Other loans from related companies	0	0
Other financing sources	0	0
Dividends paid (less)	0	0
Distribution of paid in capital (less)	0	0
Loans repaid (less)	(15,004,962)	(1,189,551)
Bonds paid (less)	0	0
Repayment of documented loans from related companies (less)	0	0
Repayment of other loan form related companies (less)	0	0
Stock issuance expense (less)	0	0
Other financing disbursements (less)	0	0
Net positive (negative) cash flow from financing activities	13,723,598	11,840,492
Cash flow from investment activities
Sales of fixed assets	0	0
Sales of permanent investments	0	0
Sales of other investments	0	0
Collection of documented loans to related companies	0	0
Collection of other loans to related companies	0	171,153
Other investment income	171,734	0
Acquisition of fixed assets (less)	(6,129,689)	(16,673,607)
Interest capitalized repaid (less)	(601,398)	0
Permanent investments (less)	0	0
Investments in securities (less)	0	0
Documented loans to related companies (less)	0	0
Other loans to related companies (less)	0	(293,282)
Other investment disbursements (less)	0	0
Net positive (negative) cash flow from investment activities	(6,559,353)	(16,795,736)
Net total positive (negative) cash flow of the period	9,701,655	(7,104,,296)
Effect of inflation on cash and cash equivalents	(305,926)	231,229
Net change in cash and cash equivalents (less)	9,395,729	(6,873,067)
Initial balance of cash and cash equivalents	1,613,264	12,848,418
Final balance of cash and cash equivalents	11,008,993	5,975,351

~~The~~MASISA ~~accompanying Notes N° 1 to 27~~S.A. ~~form~~(Free antranslation ~~integral~~from ~~part~~the oforiginal ~~these~~in ~~consolidated financial statements.~~ Spanish)

	For the three-month period
		As of June 30,
	ended March 31,
		2003		2002
	2003	2002
CONSOLIDATED BALANCE SHEET		ThCh$		ThCh$
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES	ThCh$	ThCh$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Net income (loss) for the period	75,748	4,009,369
CURRENT LIABILITIES
Results on sales of assets:
Due to banks and financial institutions short/term			44,614,057		30,766,104
(Profit) loss on sales of fixed assets	30	(14,929)
Short/term portion of long/term liabilities to banks and financial institutions			38,657,006		3,890,933
(Profit) on sales of investments	0	0
Short-term portion of long term Bonds			6,623,131		18,311,225
Loss on sales of investments	0	0
Other long/term liabilities due within one year			226,409		1,273,890
(Profit) loss on sales of other assets	0	0
Dividends payable			97,943		191,493
Charges (credits) to income not affecting cash flow:
Accounts payable			16,341,897		10,322,411
Depreciation for the period	3,938,344	3,884,007
Notes payable			0		0
Amortization of intangibles	1,101	0
Sundry creditors			707,964		446,144
Write/off and provisions	0	79,236
Notes and accounts payable to related companies			2,628,902		60,135
Income from investment in related companies (less)	0	0
Provisions			2,886,586		2,304,679
Loss on investment in related companies	35,009	0
Withholdings			1,612,457		599,346
Amortization of goodwill	56,339	55,602
Income tax			0		1,297,657
Amortization of negative goodwill (less)	(18,086)	0
Unearned income			31,680		91,315
Net price/level restatements	212,512	(942,784)
Deferred taxes			0		0
Net exchange difference	(570,022)	6,013,342
Other current payable			592,003		733,784
Other credit to income not affecting cash flow (less)	0	0
Total current liabilities			115,020,035		70,289,116
Other changes to income not affecting cash flow	0	0
LONG-TERM LIABILITIES
Changes in assets, affecting cash flow:
Due to banks and financial institutions			84,840,569		94,322,880
Decrease (increase) in accounts receivable	(2,370,928)	(1,411,868)
Bonds Payable			25,168,320		32,045,929
Decrease (increase) in inventories	(2,955,138)	(4,336,483)
Notes payable			0		0
Decrease (increase) in other assets	(964,069)	(4,148,977)
Sundry creditors			2,142,531		2,405,263
Changes in liabilities, affecting cash flow:
Notes and accounts payable to related companies			0		0
Increase (decrease) in accounts payable related to operating income	1,220,068	(6,326,654)
Provisions			33,922		0
Increase (decrease) in interest payable	2,661,793	1,801,880
Deferred taxes			5,691,748		4,656,492
Net Increase (decrease) in income taxes payable	18,384	1,037,700
Other long term payable			4,212,102		1,910,072
Increase (decrease) in other accounts payable related to non/operating income	917,824	(384,120)
Total long-term liabilities			122,089,192		135,340,636
Net increase (decrease) value added tax and similar payable	116,909	(126,649)
Minority interest			43,676,751		42,095,077
Profit (loss) of minority interest	161,592	(1,337,724)
SHAREHOLDERS’ EQUITY
Net positive (negative) cash flow from operating activities	2,537,410	(2,149,052)
Paid/up capital stock			170,326,091		171,152,917
Capital revaluation reserve			1,873,587		1,026,918
Share premium account			0		0
Reserve on reappraisal of fixed asset			0		0
Other reserves			30,718,135		29,032,488
Accumulated deficit for development period (less)			0		0
Retained Earnings			106,766,381		105,553,060
Reserve future dividends			92,586,946		85,100,102
Accumulated profits			13,489,576		13,488,022
Accumulated losses (less)			0		0
Net income for the period			689,859		6,964,936
Interim dividends (less)			0		0
Total shareholders’ equity			309,684,194		306,765,383
Total liabilities and shareholders’ equity			590,470,172		554,490,212

The accompanying Notes N°º 1 to 27 form an integral part of these consolidated financial statements.

~~MASISA S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2003 AND 2002 (Free translation from the original in Spanish)~~ 4

~~NOTE~~MASISA ~~1- COMPANY~~S.A. ~~REGISTRATION~~ (Free translation from the original in Spanish)

The Parent Company, MASISA S.A., is a quoted stock corporation, registered under N°132 in the Official Company Register and is therefore governed by the rules of the Superintendencia de Valores y Seguros de Chile (Chilean Superintendency of Securities and Insurance: “Superintendency of Securities and Insurance” and of the Securities and Exchange Commission of the U.S.A.

	For the three-month period Ended June 30,
	2003			2002
CONSOLIDATED STATEMENT OF INCOME	ThCh$			ThCh$

Sales		90,460,660			78,105,459
Cost of sales (less)		(69,702,622	)		(55,516,462	)
Gross margin		20,758,038			22,588,997
Selling and administrative expenses (less)		(14,062,515	)		(9,671,895	)

OPERATING RESULT		6,695,523			12,917,102

Financial Income		966,930			1,195,201
Income on investments in related companies		0			125,736
Other non operating income		445,632			2,698,015
Loss on investments in related companies (less)		(46,908	)		0
Amortization of goodwill (less)		(113,351	)		(111,995	)
Financial expenses (less)		(5,116,403	)		(3,072,548	)
Other non/operating expenses (less)		(483,360	)		(229,351	)
Price/level restatement		(518,758	)		(781,598	)
Exchange Differences		(474,855	)		(5,275,470	)

NON /OPERATING RESULT		(5,341,073	)		(5,452,010	)

Result before income taxes and minority interest		1,354,450			7,465,092
Income taxes (less)		(161,652	)		(2,499,740	)
Consolidated Profit (Loss)		1,192,798			4,965,352
Minority interests		(539,328	)		1,718,414
Amortization negative goodwill		36,389			281,170

NET INCOME		689,859			6,964,936

~~NOTE~~The 2accompanying —Notes ~~SUMMARY~~Nº ~~OF SIGNIFICANT~~1 ~~ACCOUNTING~~to ~~POLICIES~~ 27 form an integral part of these consolidated financial statements.

MASISA S.A.
(Free translation from the original in Spanish)

	For the three-month period ended June 30,
	2003			2002
CONSOLIDATED STATEMENT OF CASH FLOW	ThCh$			ThCh$

Cash flow from operating activities
Collection of accounts receivable		111,573,481			98,144,690
Interest income receivable		262,487			255,593
Dividends and other distributions received		0			0
Other income		5,047,761			1,157,120
Payments of suppliers and personnel (less)		(101,567,840	)		(94,940,718	)
Interest paid (less)		(3,225,895	)		(1,866,997	)
Income tax paid (less)		(3,958,901	)		(1,167,646	)
Other expenses paid (less)		(403,525	)		(691,243	)
V.A.T. and similar paid (less)		(3,287,273	)		(375,339	)

Net positive (negative) cash flow from operating activities		4,440,295			515,460

Cash flow from financing activities
Issuance of cash shares		0			288,761
Loans drawn		50,269,283			34,907,752
Bonds issued		0			0
Documented loans from related companies		0			0
Other loans from related companies		0			0
Other financing sources		531,366			0
Dividends paid (less)		(3,150,753	)		(6,293,593	)
Distribution of paid in capital (less)		0			0
Loans repaid (less)		(17,547,843	)		(6,771,978	)
Bonds paid (less)		(17,478,000	)		0
Repayment of documented loans from related companies (less)		0			0
Repayment of other loan form related companies (less)		0			0
Stock issuance expense (less)		0			0
Other financing disbursements (less)		0			0

Net positive (negative) cash flow from financing activities		12,624,053			22,130,942

Cash flow from investment activities
Sales of fixed assets		45,443			17,290
Sales of permanent investments		0			0
Sales of other investments		222,151			0
Collection of documented loans to related companies		0			0
Collection of other loans to related companies		0			0
Other investment income		4,544,280			0
Acquisition of fixed assets (less)		(10,292,064	)		(26,320,902	)
Interest capitalized repaid (less)		(821,062	)		0
Permanent investments (less)		0			(1,942	)
Investments in securities (less)		0			(5,697,054	)
Documented loans to related companies (less)		0			0
Other loans to related companies (less)		0			(879,897	)
Other investment disbursements (less)		0			0

Net positive (negative) cash flow from investment activities		(6,301,252	)		(32,882,505	)

Net total positive (negative) cash flow of the period		10,763,096			(10,236,103	)

Effect of inflation on cash and cash equivalents		114,897			666,325

Net change in cash and cash equivalents (less)		10,877,993			(9,569,778	)

Initial balance of cash and cash equivalents		1,622,896			12,939,911

Final balance of cash and cash equivalents		12,500,889			3,370,133

The accompanying Notes Nº 1 to 27 form an integral part of these consolidated financial statements.

MASISA S.A.
(Free translation from the original in Spanish)

	For the three-month period ended June 30,

RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES	2003 ThCh$			2002 ThCh$

Net income (loss) for the period		689,859			6,964,936

Results on sales of assets:
(Profit) loss on sales of fixed assets		12,302			0
(Profit) on sales of investments		0			0
Loss on sales of investments		0			0
(Profit) loss on sales of other assets		0			0

Charges (credits) to income not affecting cash flow:
Depreciation for the period		8,630,166			8,065,843
Amortization of intangibles		95,210			0
Write/off and provisions		209,172			0
Income from investment in related companies (less)		0			(125,736	)
Loss on investment in related companies		46,908			0
Amortization of goodwill		113,351			111,995
Amortization of negative goodwill (less)		(36,389	)		(281,170	)
Net price/level restatements		518,758			781,598
Net exchange difference		474,855			5,275,470
Other credit to income not affecting cash flow (less)		(74,370	)		0
Other changes to income not affecting cash flow		1,394,179			0

Changes in assets, affecting cash flow:
Decrease (increase) in accounts receivable		(5,272,615	)		770,547
Decrease (increase) in inventories		(5,531,153	)		(6,202,555	)
Decrease (increase) in other assets		(1,662,270	)		(3,199,231	)

Changes in liabilities, affecting cash flow:
Increase (decrease) in accounts payable related to operating income		4,728,971			(11,392,249	)
Increase (decrease) in interest payable		1,890,508			1,924,277
Net Increase (decrease) in income taxes payable		(3,779,258	)		1,332,095
Increase (decrease) in other accounts payable related to non/operating income		79,835			(461,893	)
Net increase (decrease) value added tax and similar payable		1,372,948			(1,330,053	)
Profit (loss) of minority interest		539,328			(1,718,414	)

Net positive (negative) cash flow from operating activities		4,440,295			515,460

The accompanying Notes Nº 1 to 27 form an integral part of these consolidated financial statements.

MASISA S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2003 AND 2002
(Free translation from the original in Spanish)

NOTE 1 - COMPANY REGISTRATION

The Parent Company, MASISA S.A., is a quoted stock corporation, registered under Nº132 in the Official Company Register and is therefore governed by the rules of the Superintendencia de Valores y Seguros de Chile (Chilean Superintendency of Securities and Insurance) and of the Securities and Exchange Commission of the U.S.A.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


a)	Accountant Period

The following financial statements correspond to the period between January 1, 2003 and ~~March~~Junio 3130, 2003, and are presented compared to the same period of 2002 :

b) Consolidated financial statements preparation basis.

The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in Chile and the specific accounting regulations of the Superintendency of Securities and Insurance (“SVS”). If any discrepancy exists between both entity’s regulations, those of the Superintendency of Securities and Insurance will primate.

In accordance to Circular N°º 79 and N°º 81 of the SVS dated January 19 and 22 2002, the Company recorded the effects of the application of the Argentinean Peso Exchange rate in the conversion of the financial as of ~~March~~June 3130, 2003 as required by the Technical Bulletin N°º 64 of the Chilean Institute of Accountants.

c) Presentation basis.

Only for comparative purposes, the financial statements of the previous year were adjusted by 3.835% to reflex changes in the purchasing power of the Chilean peso, using the CPI variation as reference.

Also for comparative purposes, some restatements have been made to financial statements as of ~~March~~June 3130, 2002.

~~d) Consolidated basis.~~ 8


d)	Consolidated basis

The Consolidated Financial Statements includes the assets, liabilities, result and statement of cash flows of the Company and its direct or indirect subsidiaries

The following is a list of the consolidated subsidiaries:

			~~Ownership as of~~			Ownership as of
			March 31,2003			March 31,
						June 30, 2003			June 30, 2002
						2002
RUT		Company		Business		Direct	Indirect	Total	Total
RUT	Company	Business	Direct	Indirect	Total	Total
79,554,560-3		Inversiones Coronel Limitada		Investments		99.9969	0.0031	100.0000	100.0000
79,554,560-3	Inversiones Coronel Limitada	Investments	99.9993	0.0007	100.0000	100.0000
79,959,070-0		Masisa Inversiones Limitada		Investments		99.9973	0.0027	100.0000	100.0000
79,959,070-0	Masisa Inversiones Limitada	Investments	99.9973	0.0027	100.0000	100.0000
77,790,860-K		Masisa Partes y Piezas Limitada				99.8000	0.2000	100.0000	0.0000
77,790,860-K	Masisa Partes y Piezas Limitada		99.8000	0.2000	100.0000	0.0000
81,507,700-8		Forestal Tornagaleones S.A.		Wood products and by-products processing		60.4492	0.0000	60.4492	53.9956
81,507,700-8	Forestal Tornagaleones S.A.	Wood products and by-products processing	60.4492	0.0000	60.4492	53.9956
79,616,940-0		Masisa Concepción Limitada				43.9469	56.0531	100.0000	100.0000
79,616,940-0	Masisa Concepcion Limitada		43.9469	56.0531	100.0000	100.0000
Foreign		Masisa Overseas Ltd.		Investments/Fund Raising		100.000	0.0000	100.0000	100.0000
Foreign	~~Masisa Overseas Ltd.~~	~~Investments/Fund~~Maderas ~~Raising~~y Sintéticos del Perú S.A.C.	~~100.0000~~	~~0.0000~~	~~100.0000~~	~~100~~99.~~0000~~0114	0.8897	99.9011	99.9011
Foreign	~~Maderas y Sinteticos del Peru S.A.C.~~	Maderas y Sintéticos de Mexico S.A. de C.V.	~~99.0114~~	~~0.8897~~Wood products and by/products processing	~~99.9011~~	991.~~9011~~0000	99.0000	100.0000	100.0000
Foreign	~~Maderas y Sinteticos de Mexico S.A. de C.V.~~	~~Wood~~Maderas ~~products~~y ~~and~~Sintéticos ~~by/products~~Servicios ~~processing~~S.A. de C.V.	~~1.0000~~	~~99.0000~~	~~100.0000~~	~~100~~1.0000	99.0000	100.0000	100.0000
Foreign	~~Maderas y Sinteticos de Servicios S.A. de C.V.~~	Masisa Ecuador S.A.	~~1.0000~~	~~99.0000~~	~~100.0000~~	~~100~~0.~~0000~~1000	99.9000	100.0000	0.0000
Foreign	~~Masisa Ecuador S.A.~~	Masisa do Brazil Limitada	~~0.1000~~	~~99.9000~~Particleboard and MDF Commercialization	~~100.0000~~	0.~~0000~~0024	99.9976	100.0000	100.0000
Foreign	~~Masisa do Brazil Limitada~~	~~Particleboard~~Masisa ~~and~~Argentina ~~MDF Commercialization~~S.A.	~~0.0024~~	~~99.9976~~Wood products and by/products processing	~~100.0000~~	~~100~~0.0000	100.0000	100.0000	100.0000
Foreign	~~Masisa Argentina S.A.~~	~~Wood~~Forestal ~~products~~Tornagaleones ~~and~~Overseas ~~by/products processing~~Ltd.	~~0.0000~~	~~100.0000~~	~~100.0000~~	~~100~~0.0000	60.4492	60.4492	53.9956
Foreign	~~Forestal Tornagaleones Overseas Ltd.~~	Forestal Argentina S.A.	~~0.0000~~	~~60.4492~~	~~60.4492~~	530.~~9956~~0000	30.2900	30.2900	27.0518
Foreign	Forestal Argentina S.A.		0.0000	30.2900	30.2900	27.0518

The effects of unrealized results form transactions with subsidiaries have been eliminated.

On October 23, 2002, the Company created the company Masisa Ecuador S.A. On June 26, 2002, the Company created the company Masisa Partes y Piezas Ltda.

e)	Price-level restatement

The consolidated financial statements have been adjusted in accordance with generally accepted accounting principles. ~~These~~ These restatements have been calculated based on the variations in the official Consumer Price Index on a previous month basis, which amounted 01.51% during the January 2003 – ~~March~~ June 2003 period ((0.46%) in 2002). The income and expense accounts have also been restated in terms of period- end constant pesos.


f)	Foreign currency

Assets and liabilities in foreign currency have been translated into Chilean pesos at the closing exchange rates published by the Central Bank of Chile for the different types of operations, at the exchange rates agreed with the corresponding creditors, and to the Unidad de Fomento (UF) value published by the National Institute of Statistics, prevailing at the closing date of each period.

Assets and liabilities in foreign currency have been translated into Chilean pesos at the official exchange rate applicable to each period:

Currency		~~2003~~	~~2002~~	2003 ThCh$	2002 ThCh$
		ThCh$	ThCh$
US Dollar (US$)		US$		699.12	688.05
US Dollar (US$)	US$	731.56	655.90
Argentine Pesos		ThAr$		250.36	181.08
Argentine Pesos	ThAr$	246.52	223.86
Euro		Euro		803.86	681.91
Euro	Euro	797.34	570.94
Swedish Crone		Crs		87.46	75.14
Swedish Crone	Crs	86.42	63.26
Real (Brazil)		$R		246.43	244.44
Real (Brazil)	$R	218.38	282.23
Mexican Peso		MxN		66.88	69.16
Mexican Peso	MxN	68.00	72.99
Nuevo Sol Peruano		Sol		201.62	196.14
Nuevo Sol Peruano	Sol	210.60	190.84
Unidad de Fomento (U.F.)		U.F.		16,959.67	16,355.20
Unidad de Fomento (U.F.)	U.F.	16.783.60	16.197.66


g)	Marketable securities

Marketable securities are comprised of share in money market mutual funds, which are stated at redemption value at the end of each year.

h)	Inventories

The inventories are valued at production cost or at the acquisition cost including indirect manufacturing costs, and its balance is determined by the weighted average price method plus price/level restatement.

The Company makes obsolescence inventory provisions, that are presented deducted from the original.

The timber resources presented in this account has been determined in accordance with a technical appraisal, as explained in the note 2j). As of ~~march~~june 3130, 2003, this account includes the expenses related to harvesting roads at their initial cost plus price level restatement, and they will be amortized to sale cost after timber harvest and sale of the timber.

The amount thus determined does no exceed their corresponding market values.

i)	Allowance for doubtful accounts

The company has recorded allowances to cover the possible non-collection of account receivables, which are shown as a deduction from account receivables. The allowances were calculated considering a 1% of the local account receivables plus others specific account receivables of doubtfully recovery.


j)	Fixed assets

Fixed assets , excluding plantations, are presented at their acquisition or construction cost value, price level restated, which includes the actual financial cost incurred by the company, until those assets are able to be used, applying effective financing cost rate.

Major maintenance expenses are incorporated into assets and then amortized over the period between the maintenance and the scheduled next major maintenance those items with significant relative value are depreciated in the same period of are as the fixed asset with which they are associated and spare parts that are periodically used are charged to production cost when utilized.

The forestry plantations value is determined in accordance with a technical appraisal. The value over the book value thus estimated , that includes the financing value during the growing period, has been credited to the Forestry reserve value in the Net worth of the respective subsidiary.

Indefinitely inactive fixed assets have been classified in the item Other Long Term Assets and are shown at their estimated realization value.

k)	Fixed assets depreciation

Depreciation has been computed using the straight/line method, considering the remaining estimated useful life of each asset.

l)	Leasing assets

Assets purchased under financial leasing are valued at the current value of the contract, which is set discounting the periodical installment and the purchase option at the interest rate established in the related contract, On the other hand, the respective obligation is shown in the short and long term portion net of non/accrued interests.

m)	Investments in related companies

Investments in related companies are valued based on the equity method, eliminating unrealized profits and losses. ~~Investments in companies located in other countries have been valued in accordance with Technical Bulletin N(degree)64 of the Chilean Institute of Accountants.~~

~~In accordance to~~ Investments ~~Circular N(degree)150~~in ofcompanies ~~the~~located ~~SVS, the Company had~~in ~~made~~other ~~an evaluation over~~countries ~~the value~~have ofbeen ~~its subsidiaries assets~~valued in ~~Argentina, Mexico~~accordance ~~and~~with ~~Brazil,~~Technical ~~and~~Bulletin ~~over~~Nº64 ~~the~~of ~~cash flows this subsidiaries produce,~~ the ~~Company~~Chilean ~~had~~Institute ~~concluded that it don't need to make any adjustment for this concept, due to there has been no significant decay in the recuperation value~~ of ~~those respective assets~~Accountants.

In accordance to Circular Nº 150 of the SVS, the Company had made an evaluation over the value of its subsidiaries assets in Argentina, Mexico and Brazil, and over the cash flows this subsidiaries produce, the Company had concluded that it don’t need to make any adjustment for this concept, due to there has been no significant decay in the recuperation value of those respective assets.

n)	Goodwill and negative Goodwill

This item represents the difference between the acquisition value of shares of the related company and its proportional equity value at the date of purchase. This differences are amortized in the following steps:

Goodwill

The acquisition of the former subsidiary Maderas y Paneles S.A., merged on august 31, 1993, generated a lower investment value for the Company, that as of ~~march~~june 3130, 2003 has a value of THCH$6522,~~741~~044. This value will be amortized in a period of 10 years, given the returns of current administration of the plant.

The acquisition of the former subsidiary Masisa Cabrero S.A., former Fibranova S.A., generated a lower investment value for the Company, that as of ~~march~~june 3130, 2002 has a value of THCH$~~875~~868,~~845~~487. This value will be amortized in a period of 20 years, given the returns of current administration of the plant.

Negative Goodwill

The capital'’s raise of Forestal Tornagaleones S.A. in June 27th, 2002, generated a higher investment value for the Company of THCH$~~906~~1,~~041~~382,764. This value will be amortized in a period of 20 years. As a result of the loses generated by Forestal Tornagaleones S.A. in this period, the accumulated amortization has been matched to the accumulated loses of the amortization period, by the respective current norms.

o)	Securities purchased under resale agreements

Are included in the account "“Other Current Assets"” and corresponds to the acquisition of financial assets that must be sold in the short term, and are presented at market value as of the purchase date plus the accrued interest as of the last day of the period.

The value thus determined does not exceed the current market value.

p)	Income tax

The company has recognized its tax obligations in conformity with current legislation.

q)	Deferred tax

The effects produced by deferred taxes, as a consequence of temporal differences between the financial and tax purpose balance sheet, have been registered as per Technical Bulletin N~~(degree)~~º 60, 68, 69 and 71 of the Chilean Institute of Accountants and in the Circular N~~(degree)~~º 1,466 of the Superintendencia de Valores Seguros. The effects derived of the existing taxes at January 1 2000, that were not registered before, will be recognized on the results, starting in this year, to the extend that the temporal differences are reversed.

Sales

Sales value corresponds to the sale of the Company manufactured products, and their price is given by present market regulations.

s)	Derivative contracts

Risk coverage financial instruments taken by the company to reduce or eliminate the foreign currency risk. In addition, the Company has taken LIBOR interest rate SWAPS to partially reduce or eliminate the interest rate fluctuation risk. This contracts has been recorded in accordance with the No 57 Technical Bulletin of the Accountant Institute of Chile.

t)	Software

The Company uses the system SAP R/3 version 4.6 C, acquired from SAP Chile S.A. , and has determined a depreciation period of 4 years.

u)	Research and Development expenses

The Research and Development expenses are charged to the income of the period of which expenses were incurred. The Company has not incurred in significant Research and Development expenses.


v)	Consolidated Statement of Cash Flows

As set forth the No 50 Technical Bulletin of the Accountant Institute of Chile and the Circular N~~(degree)~~º 1,312 of the Superintendencia de Valores y Seguros dated January 17, 1997, the Company has defined the following concepts related to the Statement of Cash Flows.

Cash Equivalent: Every investment that meets the following conditions: - May be quickly converted in a known amount of cash. - The Company has the intention to do the this conversion in no more than 90 days. - There is a minimum risk of a significant lose of value due to this investment

As– ~~of march~~May ~~31,~~be ~~2003, all~~quickly ~~the~~converted ~~short-term~~in ~~investments~~a ofknown ~~the~~amount ~~company~~of ~~meet the mentioned conditions~~cash.

–	The Company has the intention to do the this conversion in no more than 90 days.

–	There is a minimum risk of a significant lose of value due to this investment

As of june 30, 2003, all the short-term investments of the company meet the mentioned conditions.

The Balance of cash and cash equivalents is as follows:

	~~Initial~~	~~Final Balance~~Initial	Final Balance
	~~ThCh$~~	ThCh$	ThCh$
2003
Cash	~~1,383,672~~	21,~~557~~391,~~846~~933	9,219,605
Time deposits	~~229,592~~	6230,~~908,088~~963	3,281,284
Marketable securities	0	~~1,543,059~~0	0
Securities purchased under resale agreements	0	0	0
Total	~~1,613,264~~	111,~~008~~622,~~993~~896	12,500,889
2002
Cash	~~5,242,662~~	25,~~966~~279,~~357~~995	2,197,295
Time deposits	~~7,605,756~~	27,~~437~~659,~~794~~916	717,371
Marketable securities	0	~~571,200~~0	0
Securities purchased under resale agreements	0	0	455,467
Total	~~12,848,418~~	512,~~975~~939,~~351~~911	3,370,133

Operating Activities:

Cash flows from operating activities includes all business-related cash flows, including interest paid, financial income and, in general, all flows that are not defined as related to investment or financing activities. It should be pointed out that this definition is broader than that used in the consolidated statement of income.

NOTE 3 - CHANGES IN ACCOUNTING PRINCIPLES

There have been no changes in accounting principles during current period in comparison to previous period.

NOTE 4 - ACCOUNTS RECEIVABLE SHORT AND LONG TERM

	Currency
	Less than 90		More than 90 less			Currency Total		Long-term
	Less than 90 days				More than 90 and less than 1 year						Currency Total		Long-term
			than 1 year
	06/30/2003		06/30/2002		06/30/2003		06/30/2002		Sub-Total		06/30/2003	06/30/2002	06/30/2003	06/30/2002
	03/31/2003	03/31/2002	03/31/2003	03/31/2002	Sub-Total	03/31/2003	03/31/2002	03/31/2003	03/31/2002
Account receivable	36,126,582		25,890,613		568,181		1,885,620		36,694,763		34,923,910	27,776,233	0	0
Account receivable	34,190,186	24,880,193	1,346,978	1,618,237	35,537,164
Non-collect receivables estimate	0		0		0		0		(1,770,853	)
Non-collect receivables estimate	0	0	0	0	(1,707,477)	33,829,687	26,498,430	0	0
Notes receivable	4,791,537		4,063,826		187,043		1,274,426		4,978,580		4,674,482	5,338,252	0	0
Notes receivable	5,238,520	6,154,475	324,962	42,123	5,563,482
Non-collect receivables estimate	0		0		0		0		(304,098	)
Non-collect receivables estimate	0	0	0	0	(380,642)	5,182,840	6,196,598	0	0
Sundry debtors	3,084,599		3,819,481		189,375		85,729		3,273,974
Sundry debtors	3,534,804	1,628,084	268,886	1,676,588	3,803,690
Non-collect receivables estimate	0		0		0		0		(123,342	)	3,150,632	3,905,210	983,756	1,186,228
Non-collect receivables estimate	0	0	0	0	(88,399)	3,715,291	3,304,672	1,023,980	1,306,414
									Total Long Term receivable				983,756	1,186,228
					Total Long Term receivable			1,023,980	1,306,414

Debtors’ profile

The debtors’ profile is presented as follow (net of allowances).

	~~2003~~	~~2002~~2003		2002
	~~ThCh$~~	ThCh$		ThCh$
National receivable
Account receivable	~~11,278,280~~	110,~~496~~770,~~015~~310		11,357,895
Notes receivable	~~1,804,389~~	21,~~676~~420,~~645~~475		2,613,484
Short-term Sundry debtors	~~803,297~~	1,~~051~~104,~~932~~505		957,152
Long-term Sundry debtors	~~61,031~~	0411,772		336,021
Foreign receivable
Account receivable	~~22,551,407~~	1524,~~002~~153,~~415~~600		16,418,338
National account receivable	~~33.34%~~	4330.~~38%~~84	%	40.89	%
Foreign account receivable	~~66.66%~~	5669.~~62%~~16	%	59.11	%
Notes receivable	~~3,378,451~~	3,~~519~~254,~~953~~007		2,724,768
National notes receivable	~~34.81%~~	4330.~~20%~~39	%	48.96	%
Foreign notes receivable	~~65.19%~~	5669.~~80%~~61	%	51.04	%
Short-term Sundry debtors	~~2,911,994~~	2,~~252~~046,~~740~~127		2,948,058
National short-term sundry debtors	~~21.62%~~	3135.~~83%~~06	%	24.51	%
Foreign short-term sundry debtors	~~78.38%~~	6864.~~17%~~94	%	75.49	%
Long-term Sundry debtors	~~962,949~~	1571,~~306,414~~984		850,207
National long-term sundry debtors	~~5.96%~~	041.~~00%~~86	%	28.33	%
Foreign long-term sundry debtors	~~94.04%~~	~~100~~58.~~00%~~14	%	71.67	%

~~NOTE 5 — TRANSACTIONS WITH RELATED COMPANIES~~ 14

NOTE 5 - TRANSACTIONS WITH RELATED COMPANIES

Notes and accounts receivables from related companies in the short-term:

Sales of goods and services made by the Company from and to related companies in Chile are made in Chilean pesos and with a pay term not exceeding 60 days, without interest nor restatement . Export sales to foreign related companies are in American dollars, without interest and not exceeding 180 days.

Notes and accounts receivables from related companies in the long-term:

In 2002, the long term account receivable for the subsidiary Forestal Río Calle Calle S.A. are summarized in American dollars (US$)and pays an annual interest of 3.0%.

Notes and account receivable from related companies:

RUT	Company	Short-Term		Long-Term
				Short-Term			Long-Term
		03/31/2003	03/31/2002	03/31/2003	03/31/2002
RUT		Company		06/30/2003		06/30/2002	06/30/2003	06/30/2002
96,469,000-6	~~Andinos S.A.~~	0Andinos S.A.	~~1,168,307~~	0	0	373,364	0	0
96,626,060-2	~~Forestal Rio Calle Calle S.A.~~	0Forestal Río Calle Calle S.A.	0	~~2,174,352~~0	~~2,247,624~~	0	2,174,373	2,368,540
Foreign	~~Forestal Terranova Mexico S.A.de C.V.~~	~~131,671~~Forestal Terranova Mexico S.A.de C.V.	~~4,024,346~~	0119,350	0	2,942,178	0	0
Foreign	~~Terranova Costa Rica S.A.~~	~~57,178~~Terranova Costa Rica S.A.	0	0104,625	0	0	0	0
Foreign	~~Terranova Colombia S.A.~~	~~531,185~~Terranova Colombia S.A.	0	0651,713	0	0	0	0
Foreign	~~Forestal Terranova de Guatemala S.A.~~	~~32,364~~Amanco Guatemala S.A.	0	031,171	0	0	0	0
Foreign	~~Terranova Forest Products, Inc.~~	~~152,797~~Masnova de Mexico S.A. de C.V.	0	0971,630	0	2,000,634	0	0
Foreign	Masnova S.A. de C.V.	636,559	293,354	0	0
		Fibranova C.A.		0		1,549	0	0
TOTAL		1,541,754	5,486,007	2,174,352	2,247,624
		Amanco Costa Rica S.A.		5,400		0	0	0
		Hondilut S.A. (Amanco Honduras)		47,628		0	0	0
Foreign		Terranova Forest Products, Inc.		719,437		0	0	0
Foreign		Nicalit S.A.(Amanco Nicaragua)		18,133		0	0	0
TOTAL				2,669,087		5,317,725	2,174,373	2,368,540


a)	Notes and accounts payables from related companies:

RUT	Company	Short-Term		Long-Term
				Short-Term			Long-Term
		03/31/2003	03/31/2002	03/31/2003	03/31/2002
RUT		Company		06/30/2003		06/30/2002	06/30/ 2003	06/30/ 2002
96,626,060-2	~~Forestal Rio Calle Calle S.A.~~	~~341,681~~Forestal Río Calle Calle S.A.	~~3,708~~	0307,478	0	60,135	0	0
96,469,000-6	~~Andinos S.A.~~	~~205,872~~Andinos S.A.	0	0171,541	0	0	0	0
96,527,410-3	~~Sociedad Forestal Millalemu S.A.~~	~~1,337~~Sociedad Forestal Millalemu S.A.	0	07,546	0	0	0	0
Foreign	~~Fibranova C.A.~~	~~917,383~~Terranova Brasil Limitada	0	020,118	0	0	0	0
TOTAL		1,466,273	3,708	0	0
Foreign		Fibranova C.A.		2,122,219		0	0	0
TOTAL				2,628,902		60,135	0	0


b)	come from related companies and persons:

				03/31/2003		03/31/2002
								06/30/2003			06/30/2002
					Effect on		Effect on
Company		RUT		Relationship		Concept		Amount	Effect on Income, Profit (loss) (loss)		Amount	Effect on Income, Profit (loss) (loss)
					Income,		Income,
								ThCh$	ThCh$		ThCh$	ThCh$
					Profit		Profit
Andinos S.A.		96,469,000-6		Common director		Sales of products		0	0		899,498	336,412
Company	RUT	Relationship	Concept	Amount	(loss)(loss)	Amount	(loss)(loss)
Andinos S.A.		96,469,000-6		Common director		Purchase of raw materials		585,345	0		946,044	0
				ThCh$	ThCh$	ThCh$	ThCh$
Andinos S.A.		96,469,000-6		Common director		Reimburse invoice		14,818	0		0	0
Andinos S.A.	~~96,469,000-6~~	~~Common director~~96,469,000-6	~~Sales of products~~	0Common director	0	~~412,637~~Paid invoice	~~123,791~~	650,659	0		0	0
Andinos S.A.	~~96,469,000-6~~	~~Common director~~96,469,000-6	~~Services done~~	~~2,279~~Common director	~~1,931~~	0Services and expenses invoice	0	12,691	0		0	0
Andinos S.A.	96,469,000-6	Common director	Purchase of raw materials	304,475	0	0	0
Forestal Millalemu S.A.		96,527,410-3		Common director		Purchase of raw materials		4,904	0		0	0
Andinos S.A.	96,469,000-6	Common director	Reimburse invoice	8,246	0	0	0
Forestal Millalemu S.A.		96,527,410-3		Common director		Services and expenses invoice		6,613	0		0	0
Andinos S.A.	96,469,000-6	Common director	Paid invoice	339,298	0	0	0
Forestal Millalemu S.A.		96,527,410-3		Common director		Paid invoice		4,810	0		0	0
Andinos S.A.	96,469,000-6	Common director	Reimburse of cost	0	0	1,581	0
Forestal Rio Calle Calle S.A.		Foreign		Associated		Interest		0	0		173,113	173,113
Andinos S.A.	96,469,000-6	Common director	Services received	0	0	469,718	0
Forestal Rio Calle Calle S.A.		Foreign		Associated		Loan payment		0	0		178,033	0
Forestal Millalemu S.A.	96,527,410-3	Common director	Purchase of raw materials	1,024	0	0	0
Forestal Rio Calle Calle S.A.		Foreign		Associated		Wood purchase		365,800	0		0	0
Forestal Millalemu S.A.	96,527,410-3	Common director	Rent	1,771	(1,501)	0	0
Forestal Rio Calle Calle S.A.		Foreign		Associated		Chipping service		500,610	0		0	0
Forestal Millalemu S.A.	96,527,410-3	Common director	Paid invoice	2,297	0	0	0
Fibranova C.A.		Foreign		Common director		Sales of products		253,695	73,571		0	0
Forestal Rio Calle Calle S.A.	Foreign	Associated	Interest	36,673	36,673	155,601	155,601
Fibranova C.A.		Foreign		Common director		Services and expenses invoice		82,956	0		1,549	0
Forestal Rio Calle Calle S.A.	Foreign	Associated	Purchase of raw materials	365,800	0	327,041	0
Fibranova C.A.		Foreign		Common director		Boards purchase		2,500,752	0		0	0
Forestal Rio Calle Calle S.A.	Foreign	Associated	Purchase of services	352,996	(299,149)	834,150	(706,907)
Forestal Terranova Mexico S.A. de C.V.		Foreign		Common director		Sales of products		0	0		2,494,436	720,892
Forestal Terranova S.A.	Foreign		Reimburse invoice	382	0	0	0
Forestal Terranova Mexico S.A. de C.V.		Foreign		Common director		Services and expenses invoice		282,444	(282,444	)	0	0
Fibranova C.A.	Foreign	Common director	Reimburse of cost	4,406	0	0	0
Forestal Terranova Mexico S.A. de C.V.		Foreign		Common director		Administration services		27,965	(27,965	)	0	0
Fibranova C.A.	Foreign	Common director	Sales of products	79,595	17,522	0	0
Terranova Costa Rica S.A.		Foreign		Common director		Sales of products		112,668	32,674		0	0
Fibranova C.A.	Foreign	Common director	Paid of interest	861	0	0	0
Terranova Costa Rica S.A.		Foreign		Common director		Reimburse invoice		82,133	0		0	0
Fibranova C.A.	Foreign	Common director	Purchase of products	807,642	0	0	0
Forestal Terranova de Guatemala S.A.		Foreign		Common director		Sales of products		30,929	8,969		0	0
Fibranova C.A.	Foreign	Common director	Paid invoice	618,900	0	0	0
Forestal Terranova de Guatemala S.A.		Foreign		Common director		Reimburse invoice		30,929	0		0	0
Forestal Terranova Mexico S.A. de C.V.	Foreign	Common director	Sales of products	0	0	2,124,649	0
Amanco Costa Rica S.A.		Foreign		Common director		Sales of products		5,400	1,566		0	0
Forestal Terranova Mexico S.A. de C.V.	Foreign	Common director	Reimburse invoice	128,023	(128,023)	0	0
Amanco Guatemala S.A.		Foreign		Common director		Sales of products		49,765	14,432		0	0
Forestal Terranova Mexico S.A. de C.V.	Foreign	Common director	Administration services	18,289	(18,289)	0	0
Amanco Guatemala S.A.		Foreign		Common director		Reimburse invoice		18,594	0		0	0
Forestal Terranova Mexico S.A. de C.V.	Foreign	Common director	Paid invoice	166,064	0	0	0
Hondilut S.A.(Amanco Honduras)		Foreign		Common director		Sales of products		47,628	13,812		0	0
Terranova Costa Rica S.A.	Foreign	Common director	Sales of products	57,882	7,723	0	0
Nicalit S.A. (Amanco Nicaragua)		Foreign		Common director		Sales of products		36,709	10,646		0	0
Terranova Costa Rica S.A.	Foreign	Common director	Reimburse invoice	85,945	0	0	0
Nicalit S.A. (Amanco Nicaragua)		Foreign		Common director		Reimburse invoice		18,576	0		0	0
Forestal Terranova de Guatemala S.A.	Foreign	Common director	Sales of products	32,364	1,272	0	0
Terranova Colombia S.A.		Foreign		Common director		Sales of products		483,436	140,196		0	0
Terranova Colombia S.A.	~~Foreign~~	~~Common director~~Foreign	~~Sales of products~~	~~182,921~~Common director	~~42,818~~	0Reimburse invoice	0	292,723	0		0	0
Terranova Colombia S.A.	Foreign	Common director	Reimburse invoice	173,162	0	0	0
Terranova Forest Products, Inc.		Foreign		Common director		Advance payment		719,437	0		0	0
Terranova Forest Products, Inc.	Foreign	Common director	Sales of products	152,797	6,005	0	0
Terranova Brasil Limitada		Foreign		Common director		Purchase of raw materials		206,128	0		0	0
Terranova Brasil Limitada	~~Foreign~~	~~Common director~~Foreign	~~Purchase of raw materials~~	~~84,983~~Common director	0	0Paid invoice	0	91,653	0		0	0
Terranova Brasil Limitada	Foreign	Common director	Paid invoice	91,653	0	0	0
MasNova de México S.A. de C.V.		Foreign		Common director		Reimburse invoice		1,496,507	0		0	0
MasNova de Mexico S.A. de C.V.	Foreign	Common director	Paid invoice	100,224	0	0	0

NOTE 6 —- INVENTORIES

The principal components are set forth below:

	~~2003~~	~~2002~~2003		2002
Inventories	~~ThCh$~~	ThCh$		ThCh$
Finished goods	~~27,660,177~~	1930,~~197~~160,~~522~~972		19,658,470
Obsolescence Provision	~~(604,240)~~	(~~495~~352,~~188)~~189	)	(272,537	)
Raw Materials	~~8,922,723~~	59,~~265~~302,~~311~~476		6,027,991
Other material	~~2,673,740~~	24,~~310~~080,~~836~~136		2,496,955
Spare parts	~~5,302,239~~	43,~~682~~784,~~699~~432		4,771,807
Forest and Plantation in exploitation	~~5,118,379~~	4,~~010~~673,~~855~~206		4,762,537
Total	~~49,073,018~~	3451,~~972~~649,~~035~~033		37,445,223

NOTE 7 - DEFERRED TAXES AND INCOME TAXES

At ~~March~~June 3130 2003, the Company has made the income tax provision as per the tax dispositions in force.

Considering a taxable base of:

	2003
		2003 ThCh$
	ThCh$
Masisa S.A.’s taxable income		670,236
Masisa S.A.'s taxable income	300,206
Inversiones Coronel Ltda.’s taxable income		650,686
Masisa Partes y Piezas's tributary taxable income	1,242
Masisa Inversiones Ltda.’s taxable income		2,296,972
Inversiones Coronel Ltda.'s taxable income	1,048,297
Masisa Inversiones Ltda's taxable income	1,228,644

Balances of tributary retained gains and their respective credits:

1)Masisa S.A.	: Taxed Earning Reserve amounting ThCh$6,516,674 with credit of 15%, ThCh$19,979,222 with credit of 16%, ThCh$300,206 with credit of 16.5%, and ThCh$7,401,203 without credit.
2)Masisa Inversiones Limitada	: Taxed Earning Reserve amounting ThCh$4,358,784 with credit of 15%, ThCh$4,635,178 with credit of 16% and ThCh$11,237 without credit.
3)Inversiones Coronel Limitada	: Taxed Earning Reserve amounting ThCh$763,665 with credit of 15%, ThCh$344,100 with credit of 16% and ThCh$71,841 without credit.
4)Masisa Argentina	: (Tax loss)
5)Masisa do Brasil Limitada	: (Tax loss)
6)Maderas y Sintéticos del Perú S.A.C.	: (Tax loss)
7) Forestal Tornagaleones S.A.	: (Tax loss)

Masisa S.A.

Taxed Earning Reserve amounting ThCh$3,439,218 with credit of 15%, ThCh$17,573,458 with credit of 16%, ThCh$670,236 with credit of 16.5%, and ThCh$7,302,242 without credit.

Masisa Inversiones Limitada

Taxed Earning Reserve amounting ThCh$4,162,461 with credit of 15%, ThCh$3,723,454 with credit of 16%, ThCh$2,296,972 with credit of 16,5%, and ThCh$ 10,739 without credit.

Inversiones Coronel Limitada

Taxed Earning Reserve amounting ThCh$ 768,355 with credit of 15%, ThCh$346,171 with credit of 16%, ThCh$650,686 with credit of 16,5%, and ThCh$231 without credit.

Masisa Argentina

US$15,697,931, (Tax loss)

Masisa Concepción Limitada

US$4,578,003, (Tax loss)

Masisa do Brasil Limitada

(Tax loss)

Maderas y Sintéticos del Perú S.A.C.

(Tax loss)

Forestal Tornagaleones S.A.

(Tax loss)


a)	Deferred Tax

The balances for this item are as follows:

	03/31/2003				03/31/2002
		06/30/2003								06/30/2002
	~~Assets deferred taxes~~	Assets deferred taxes	~~Liabilities deferred taxes~~		~~Assets deferred taxes~~	Liabilities deferred taxes	~~Liabilities deferred taxes~~			Assets deferred taxes				Liabilities deferred taxes
	~~Short Term~~	~~Long~~Short Term	~~Short Term~~	Long Term	~~Short Term~~	~~Long~~Short Term	~~Short Term~~	Long Term		Short Term		Long Term		Short Term	Long Term
Temporary Differences
Provision for accounts receivable losses	~~499,358~~	40495,~~357~~926	0	033,100	~~440,921~~	0	0	0		389,254		0		0	0
Anticipated income	~~268~~	0149	0	0	0	0	0	0		4		0		0	0
Vacation provisions	~~101,410~~	0116,642	0	0	~~95,434~~	0	0	0		126,904		0		0	0
Leasing assets	0	~~79,081~~0	0	068,539	0	0	0	0		0		102,918		0	0
Manufacturing expenses	0	0	~~541,081~~	~~2,598,501~~0	0	0601,760	~~578,079~~	12,~~668~~483,~~437~~274		0		0		527,550	0
Fixed assets depreciation	0	0	0	~~12,525,446~~0	0	0	0	149,~~666~~203,~~425~~830		0		0		0	14,197,454
Others events	~~74,896~~	~~17,124~~	0	~~330,669~~	~~234,555~~	~~287,816~~	~~11,416~~	~~160,432~~
Obsolescence provision	~~165,156~~	0160,158	0	0	0	0	0	0		34,146		0		0	0
Particle board line provision	0	~~803,025~~0	0	0782,732	0	~~913,522~~0	0	0		0		892,521		0	0
Unrealized profits and loss	~~156,887~~	96157,~~060~~561	0	0	0	0	0	0		113,673		0		0	0
Tax Loss	~~303,446~~	131,~~721~~051,~~625~~237	0	012,166,203	~~417,560~~	~~7,273,337~~0	0	0		1,284,718		7,296,144		0	0
Plantations interest capitalization	0	0	199,430	503,618	0	0	0	0
Plantations capitalized indirect cost		0		0		196,220		1,405,069		0		0		55,851	1,663,614
Plantations capitalized indirect cost	0	0	159,990	1,405,069	0	0	0	0
Capitalized financial cost		0		0		250,960		2,363,726		0		0		0	0
Capitalized financial cost	0	0	0	1,828,850	0	0	0	0
Forestry reserve		0		0		62,334		3,082,595		0		0		12,953	2,646,949
Forestry reserve	0	0	136,975	2,912,709	0	0	12,991	2,654,622
Others		76,145		17,124		62,987		25,301		213,214		69,008		11,383	159,969
Balance for Complementary assets amortization	~~(18,826)~~	(~~893~~18,~~380)~~826	~~(85,903~~)	(9672,~~903,568)~~567	~~(35,453~~)	(~~871~~83,~~535)~~372	0)	(117,~~131~~086,~~066)~~175	)	(13,899	)	(166,394	)	0	(10,971,031	)
Valuation provisions	0	~~(7,088,848)~~0	0	0(6,609,259	~~(206,516~~)	~~(4,274,103)~~0	0	0		(1,110,442	)	(5,153,734	)	0	0
Total	~~1,282,595~~	62,~~775~~038,~~044~~992	~~951,573~~	125,~~201~~785,~~294~~872	~~946,501~~	31,~~329~~090,~~037~~889	~~602,486~~	811,~~018~~477,~~850~~620		1,037,572		3,040,463		607,737	7,696,955


b)	Income Taxes:

	2003	2002
Items		2003 ThCh$		2002 ThCh$
Items	ThCh$	ThCh$
Income tax provision		(716,413	)	(1,904,152	)
Income tax provision	(419,291)	(680,862)
Tax expenses Adjustment		114,332		137,394
Tax expenses Adjustment	0	0
Effect for deferred taxes of the period		155,126		(435,130	)
Effect for deferred taxes of the period	213,198	(589,530)
Tax credit due to tax loss		69,912		0
Tax credit due to tax loss	0	4,952,071
Effect for amortization of deferred assets and liabilities complementary accounts		235,987		(265,342	)
Effect for amortization of deferred assets and liabilities complementary accounts	(62,861)	(99,181)
Effect on assets and liabilities of the changes in de valuating provisions		0		0
Effect on assets and liabilities of the changes in de valuating provisions	0	(4,952,071)
Others		(20,596	)	(32,510	)
Others	(10,909)	(3,736)
		(161,652	)	(2,499,740	)
	(279,863)	(1,373,309)

NOTE 8 - FIXED ASSETS


a)	This caption includes:

	~~2003~~	2003			~~2002~~					2002
		Accumulated	Year depreciation			Accumulated	Year depreciation
						Year depreciation							Year depreciation
	~~Assets value~~	~~Depreciation~~Assets value	~~Explotation~~	~~No-explotation~~Accumulated Depreciation	~~Assets value~~	~~Depreciation~~Explotation	~~Explotation~~	NoNon-explotation		Assets value	Accumulated Depreciation		Explotation		Non-Explotation
Fixed assets	~~ThCh$~~	ThCh$	~~ThCh$~~	ThCh$	~~ThCh$~~	ThCh$	~~ThCh$~~	ThCh$		ThCh$	ThCh$		ThCh$		ThCh$
Lands	~~2,253,306~~	044,400,409	0	0	~~2,764,610~~	0	0	0		42,284,880	0		(43,534	)	0
Building and infrastructure	~~8,429,174~~	(373,~~615~~001,~~437)~~925	~~(92,152)~~	(617,~~673)~~250,138	~~16,918,779~~)	(7718,~~757,781)~~768	~~(141,652~~)	(1279,~~738)~~554	)	64,304,366	(15,152,397	)	(1,015,968	)	(33,442	)
Machinery and equipment	~~28,323,418~~	~~(13~~334,~~115~~526,~~511)~~591	~~(625,994)~~	17(89,~~910~~343,148	~~95,413,715~~)	(435,~~469~~735,~~267)~~230	~~(1,063,479~~)	(41,~~495)~~097,817	)	294,999,692	(77,289,581	)	(6,046,472	)	(12,181	)
7 Machinery and equipment	28,213,559	(13,065,778)	(625,035)	18,849	95,233,956	(43,410,265)	(1,062,512)	(1,038)
Machinery and equipment		333,821,199		(88,996,494	)	(5,713,023	)	(1,093,484	)	294,198,577	(76,905,737	)	(6,034,800	)	(2,804	)
7 Transportation equipment	109,859	(49,733)	(959)	(939)	179,759	(59,002)	(967)	(3,457)
Transportation equipment		705,392		(346,654	)	(22,207	)	(4,333	)	801,115	(383,844	)	(11,672	)	(9,377	)
7 Chilean GAAP Adjustments	0	0	0	0	0	0	0	0
Chilean GAAP Adjustments		0		0		0		0		0	0		0		0
Other fixed assets:	~~14,806,892~~	(3115,~~970~~233,~~083)~~284	~~(67,993)~~	(~~183~~9,~~050)~~866,781	~~11,534,693~~)	(3480,~~996,764)~~560	~~(124,169~~)	(~~166~~518,~~259)~~237	)	144,121,014	(7,691,001	)	(429,259	)	(484,987	)
7 Plantations	222,898	0	0	0	222,618	0	0	0
Plantations		75,743,645		0		0		0		67,603,602	0		0		0
7 Furniture, fixture and other	2,176,841	(1,704,162)	(14,344)	(58,556)	2,579,274	(1,835,895)	(15,537)	(66,129)
Furniture, fixture and other		7,367,797		(5,527,216	)	(174,399	)	(302,984	)	7,383,774	(5,135,811	)	(237,306	)	(242,604	)
7 Spare parts	2,642,294	(137,326)	(664)	(22,333)	3,314,014	(480,984)	(44,042)	0
Spare parts		8,025,795		(951,217	)	(157,034	)	0		7,008,068	(484,850	)	0		0
7 Transit spare parts and equipment	0	0	0	0	0	0	0	0
Transit spare parts and equipment		35,267		(6,089	)	(558	)	0		0	0		0		0
7 Construction in progress	6,437,425	0	0	0	1,723,374	0	0	0
Construction in progress		11,238,883		0		0		0		40,926,898	0		0		0
7 Transit fixed assets	0	0	0	0	0	0	0	0
Transit fixed assets		0		0		0		0		722,803	0		0		0
7 Other fixed assets	3,327,434	(2,128,595)	(52,985)	(102,161)	3,695,413	(1,679,885)	(64,590)	(100,130)
Other fixed assets		12,821,897		(3,382,259	)	(148,569	)	(215,253	)	20,475,869	(2,070,340	)	(191,953	)	(242,383	)
7 Fixed assets in leasing	1,173,213	(757,090)	(27,488)	0	1,171,737	(644,604)	(27,772)	0
Fixed assets in leasing		1,180,217		(762,025	)	(55,367	)	0		1,180,080	(649,471	)	(55,493	)	0
7 Computacional systems (software)	2,154,221	(1,371,505)	(25,497)	(102,161)	2,523,676	(1,035,281)	(36,818)	(100,130)
Computacional systems (software)		3,075,900		(1,955,994	)	(73,599	)	(215,253	)	2,973,077	(1,309,210	)	(130,107	)	(205,789	)
7 Other	0	0	0	0	0	0	0	0
Other		8,565,780		(664,240	)	(19,603	)	0		16,322,712	(111,659	)	(6,353	)	(36,594	)
Total	~~53,812,790~~	~~(20~~567,~~701~~162,~~031)~~209	~~(786,139)~~	(~~171~~116,~~813)~~460,067	~~126,631,797~~)	(556,~~223~~934,~~812)~~558	~~(1,329,300~~)	(~~183~~1,~~492)~~695,608	)	545,709,952	(100,132,979	)	(7,535,233	)	(530,610	)
Total Fixed assets	~~32,153,807~~	~~(21~~442,~~658~~071,~~983)~~976		(125,090,233	~~69,895,193~~)	~~(56,736,604)~~				437,511,130	(108,198,822	)

From a legal viewpoint, assets acquired under finance are not the property of the Company until the purchase option is exercised. The present assets in leasing corresponds to an electrical substation, contracted with Endesa S.A. in April 1995, for a total of 120 monthly payments of US$28,396, at an annual rate of 10.5%.

c) In the Year 2001, The company has also accounted a provision to adjust the book value of one of its particle board lines, based on the estimate that future cash flows from the operation of those assets will not compensate for future depreciation charges. This provision is presented under the account "“Other Non Operating Expenses"”.


d)	The accountant value of the plantations includes the value determined in accordance with the technical appraisal.. This value is distributed among the accounts in plantations Fixed assets and Inventories as stand wood.

As indicated in the Note ~~2 j~~2j) the subsidiary Forestal Tornagaleones S.A. and its subsidiary Forestal Argentina S.A. recognize the increased value of their plantations and forest. The accumulated increase value as of ~~March 31~~ June 30, 2003 was ThCh$1918,~~064~~894,~~686~~ 816 (ThCh$14,~~694~~799,~~664~~ 305 in 2002), that includes the forest plantation under the Forestry reserve presented in the Net worth and has been determined comparing the valuation describer in the Note 2j) to the book value after price level restatement. As indicated in the Note 2j), the parent Company and its subsidiary Forestal Argentina recognized as increased value of the fix assets the financial costs related to the plantation financing a total of ThCh$80,601 (ThCh$0 in 2002).

~~e) Dated February~~As ~~5th~~indicated ~~2003~~in the Note 2j), ~~Masisa~~the ~~S.A. provided~~parent Company and its subsidiary ~~Masisa Concepcion Limitada~~ ~~of all~~Forestal ~~the~~Argentina ~~assets~~recognized ~~that~~as ~~constitutes~~ increased value of the ~~industrial~~fix ~~facilities~~assets ~~known~~the asfinancial ~~"Planta~~costs ~~Mapal" and~~related ~~"Planta~~to ~~Chiguayante", which~~the ~~generated~~plantation financing a ~~negative~~total ~~goodwill~~ of ThCh$35220,~~155,784, of which have~~813 ~~been realized~~ (ThCh$~~179~~70,~~449.~~499 ~~For~~in ~~consolidation effects is presented net of the assets that originates it~~2002).

~~NOTE~~e) 9Dated -February ~~INVESTMENT IN~~5th ~~RELATED~~2003, ~~COMPANIES~~Masisa S.A. provided its subsidiary Masisa Concepción Limitada of all the assets that constitutes the industrial facilities known as “Planta Mapal” and “Planta Chiguayante”, which generated a negative goodwill of ThCh$35,155,784, of which have been realized ThCh$179,449. For consolidation effects is presented net of the assets that originates it.

							Shareholder's		Net income		Net income				Unrealized		Book value
				Number	Participation %		Equity		For the period		Accrued		VPP		Result		of investment
RUT	Investments in related companies	Country	Currency	of shares	03/31/2003	03/31/2002	03/31/2003	03/31/2002	03/31/2003	03/31/2002	03/31/2003	03/31/2002	03/31/2003	03/31/2002	03/31/2003	03/31/2002	03/31/2003	03/31/2002
96,652,640-8	Inversiones Industriales S.A.	Chile	Pesos	1,000	50.0000000	50.0000000	0	0	0	0	0	0	0	0	0	0	0	0
96,626,060-2	Forestal Rio Calle Calle S.A.	Chile	Pesos	1	0.0012118	0.0012118	0	0	0	0	0	0	0	0	0	0	0	0
Foreign	Masnova S.A.	Mexico	Dollar	25,000	50.0000000	0.0000000	(42,840)	0	(70,017)	0	(35,009)	0	0	0	0	0	0	0
99,511,350-3	Inversiones Calle Calle S.A.	Chile	Pesos	100,000	50.0000000	0.0000000	201	0	0	0	0	0	101	0	0	0	101	0
99,505,640-2	Forestal Calle Calle S.A.	Chile	Pesos	100,000	50.0000000	0.0000000	201	0	0	0	0	0	101	0	0	0	101	0
	Total												202	0	0	0	202	0

NOTE 9 – INVESTMENT IN RELATED COMPANIES

					Participation %		Shareholder’s Equity			Net income For the period			Net income Accrued			VPP
RUT	Investments in related companies	Country	Currency	Number of shares	06/30/2003	06/30/2002	06/30/2003		06/30/2002	06/30/2003		06/30/2002	06/30/2003		06/30/2002	06/30/2003	06/30/2002

96,652,640-8	Inversiones Industriales S.A.	Chile	Pesos	1,000	50.0000000	50.0000000	0		0	0		0	0		0	0	0
96,626,060-2	Forestal Río Calle – Calle S.A.	Chile	Pesos	1	0.0012118	0.0012118	0		0	0		0	0		0	0	0
Foreign	Masnova S.A.	Mexico	Dollar	25,000	50.0000000	50.0000000	(67,845	)	255,355	(93,816	)	251,472	(46,908	)	125,736	0	127,678
99,511,350-3	Inversiones Calle Calle S.A.	Chile	Pesos	100,000	50.0000000	0.0000000	201		0	0		0	0		0	101	0
99,505,640-2	Forestal Calle Calle S.A.	Chile	Pesos	100,000	50.0000000	0.0000000	201		0	0		0	0		0	101	0

Total																202	127,678

a)	Subsidiaries with negative equity

The proportional ~~value~~patrimonial value method has been discontinued in the following subsidiaries for presenting negative shareholder’s equity. At the same time provisions has been constituted when corresponds, to recognize the share participation.

—– MasNova de México S.A. de C.V.

The related company MasNova de México ~~Mexico~~ S.A. de C.V. presents negative shareholder'’s ~~equity~~ equity in 2003, thereby a provision has been constituted for ~~THCH~~M$2133,~~420~~922. This investment is presented in Long Term Provisions.

—– Inversiones Industriales S.A.

Inversiones Industriales S.A. and Forestal Río Calle Calle S.A., as of the closure of the present period, had a negative Net Worth, hence the company has discontinuated the application of the VPP method, recognizing losses up to cover the total investment

b)	Changes and Events

Year 2002

—– Inversiones Calle Calle S.A.

As of December 9, 2002, was established Inversiones Calle Calle S.A. with a common sock of ThCh$200,000, divided in 200,000 shares without nominal value. Their shareholders are Masisa S.A. with a 50.00% of the common stock and Inversiones Industriales S.A. with the remainder 50%.

—– Forestal Calle Calle S.A.

As of ~~December~~November 6, 2002, was ~~established~~ established Forestal Calle Calle S.A. with a common sock of ThCh$200,000, divided in 2 2 shares without nominal value. Their shareholders are Inversiones Coronel Limitada with a 50.00% of the common stock and Jaime Vial Vial with the remainder 50%.

—– Portuaria Corral S.A.

As of March 14, 2002 the Company, thought its subsidiary Masisa Inversiones Limitada, sold its stock in Portuaria Corral S.A., for an amount of ThCh$ 57.

~~NOTE 10 – GOODWILL AND NEGATIVE GOODWILL~~ 20

NOTE 10 - GOODWILL AND NEGATIVE GOODWILL


a)	Goodwill

			03/31/2003		03/31/2002
						06/30/2003		06/30/2002
			First three months 2003	Total	First three months 2002	Total
RUT		Company		Term		First three months 2003 Amortization ThCh$	Total Goodwill ThCh$	First three months 2002 Amortization ThCh$	Total Goodwill ThCh$
		Term	Amortization	Goodwill	Amortization	Goodwill
87,658,900-1		Maderas y Paneles S.A.		10 year		88,178	22,044	88,168	198,377
RUT	Company		ThCh$	ThCh$	ThCh$	ThCh$
96,623,490-3		Masisa Cabrero S.A.		20 year		25,173	868,487	23,827	917,385
87,658,900-1	Maderas y Paneles S.A.	10 year	43,827	65,741	43,772	240,746
						113,351	890,531	111,995	1,115,762
96,623,490-3	Masisa Cabrero S.A.	20 year	12,512	875,845	11,830	922,730
			56,339	941,586	55,602	1,163,476

Represents the higher value paid in in the investments of Maderas y Paneles S.A. , former subsidiary Maderas y Paneles S.A., merged on august 31, 1993, that generated a lower investment value for the Company, that as of ~~March~~June 3130, 2003 has a value of ThCh$6522,~~741~~044. This value will be amortized in a period of 10 years, given the returns of current administration of the plant.

The acquisition of the former ~~subsidiary~~ subsidiary Masisa Cabrero S.A., former Fibranova S.A., generated a lower investment ~~value~~ value for the Company, that as of ~~March~~June 3130, 2003 has a value of ThCh$~~875~~868,~~845~~487. This value will be amortized in a period of 20 years, given the returns of current administration of the plant.

b)	Negative Goodwill

03/31/2003

03/31/2002

06/30/2003

06/30/2002

First three months 2003

Total Negative

First three months 2002

Total Negative

RUT

Company

Term

First three months 2003 Amortization ThCh$

Total Negative Goodwill ThCh$

First three months 2002 Amortization ThCh$

Total Negative Goodwill ThCh$

Term

Amortization

Goodwill

Amortization

Goodwill

81,507,700-8

Forestal Tornagaleones S.A.

10 year

36,389

1,382,764

281,170

602,405

RUT

Company

ThCh$

36,389

1,382,764

281,170

602,405

81,507,700-8

Forestal Tornagaleones S.A.

10 year

18,086

1,392,644

18,086

1,392,644

Indicate the lower paid value at ~~the~~ the capital’s raise of Forestal Tornagaleones S.A. in june 27, 2002, which at ~~March~~June ~~31th~~ 30th is of ThCh$1,~~392~~382,~~644~~764. This value will be amortized in a period of 20 years. As a result of the loses generated by Forestal Tornagaleones S.A. induring ~~this period~~2002, the accumulated amortization has been matched to the accumulated loses of the amortization period, by the respective current norms.

~~NOTE 11 — OTHER LONG/TERM ASSETS~~ 21

NOTE 11 - OTHER LONG/TERM ASSETS

The principal components are set forth below:

		~~2003~~	~~2002~~	2003		2002
Other long-term assets	~~Term~~	~~ThCh$~~Term	~~ThCh$~~	ThCh$		ThCh$
Time deposit Rabobank Curucao S.A. (2)	Year 2004	20,849,460	19,403,490
Time deposit Rabobank Curucao S.A.			Year 2004		0		20,295,755
Time deposit Bankboston Latinoamericano (2)	Year 2004	40,967,360	38,126,155
Assets Bienes destined for sale (inactive)					195,563		999,607
Time deposit Bankboston Latinoamericano (2)	Year 2005	38,423,886	35,759,078
Recoverable long term taxes and commissions					2,317,837		533,374
BankBoston N.A. Nasssau Branch (2)	Year 2006	4,023,580	0
Advance payment to suppliers					415,298		0
Boston Latin Finance Co. (2)	Year 2006	1,828,900	0
Others					229,526		0
Inactive Assets (1)		364,467	836,432
Total					3,158,224		21,828,736
Recoverable long term taxes		2,301,174	844,232
Advance payment to suppliers		452,522	0
Total		109,211,349	94,969,387

(1)	In 1997, management decided to close down its plywood line operations. Consequently, as mentioned in the Note 2j) the Company recorded these assets at fair value less costs to sell based on an independent appraisal.

(2) The long term deposits had accrued interests which are presented as other current assets, their maturity is semestral~~, and the amount is of ThCh$4,412,668 in the 2003 (ThCh$3,055,997 in the 2002)~~.

NOTE 12 - BANK AND FINANCIAL INSTITUTIONS SHORT-TERM

		~~US Dollar~~		~~Other~~US ~~foreign~~Dollar		~~U.F.~~		~~ThCh$ no adjustment~~		~~Total~~Other foreign						U.F.						ThCh$ no adjustment				Total
		~~2003~~	~~2002~~	2003	~~2002~~	~~2003~~	2002	~~2003~~	~~2002~~	2003	~~2002~~		2002			2003			2002			2003		2002		2003		2002
RUT	~~Bank o financial institution~~	~~ThCh$~~Bank or financial institution	~~ThCh$~~	ThCh$	~~ThCh$~~	~~ThCh$~~	ThCh$	~~ThCh$~~	~~ThCh$~~	ThCh$	~~ThCh$~~		ThCh$			ThCh$			ThCh$			ThCh$		ThCh$		ThCh$		ThCh$
	~~Short Term~~	Short Term
97,004,000-5	~~Banco de Chile~~	0Banco de Chile	~~6,092,505~~	0	07,718,739	~~26,662~~	0	06,272,316	0	~~26,662~~	~~6,092,505~~0			0			1,949,006			0			0		0		9,667,745		6,272,316
97,006,000-6	~~Banco de Credito e Inversiones~~	~~4,403,269~~Banco de Crédito e Inversiones	~~2,743,595~~	0	04,234,309	0	0	02,892,224	0	~~4,403,269~~	~~2,743,595~~0			0			498,300			0			0		0		4,732,609		2,892,224
97,041,000-7	~~BankBoston, N.A.~~	2BankBoston,~~935,962~~ N.A.	~~6,854,595~~	0	02,824,150	0	0	07,221,105	0	~~2,935,962~~	~~6,854,595~~0			0			0			0			0		0		2,824,150		7,221,105
97,042,000-2	HSBC Bank USA	2,658,899	0	0	0	0	0	0	0	2,658,899	0
97,919,000-K		ABN Amro Bank			3,516,574			0			0			0			2,266,853			169,414			0		0		5,783,427		169,414
97,080,000-K	Banco Bice	2,935,505	0	0	0	0	0	0	0	2,935,505	0
97,042,000-2		HSBC Bank Chile			2,542,399			0			0			0			0			0			0		0		2,542,399		0
Foreign	Banco de Chile New York	0	7,657,430	0	0	0	0	0	0	0	7,657,430
97,080,000-K		Banco Bice			2,824,985			0			0			0			0			0			0		0		2,824,985		0
Foreign	BankBoston	5,537,301	5,282,295	0	0	0	0	0	0	5,537,301	5,282,295
97,030,000-7		Bancoestado			2,104,122			0			0			0			0			0			0		0		2,104,122		0
Foreign	Security Bank	0	1,919,082	0	0	0	0	0	0	0	1,919,082
97,023,000-9		Corpbanca			3,508,106			0			0			0			0			0			0		0		3,508,106		0
Foreign	~~ABN Amro Bank~~	0Rabobank Curacao N.V.	0	~~61,089~~	~~893~~3,~~663~~513,517	0	0	0	0	~~61,089~~	~~893,663~~0			0			0			0			0		0		3,513,517		0
Foreign	~~Banco de la Nacion Argentina~~	0Banco de Chile New York Branch	0	0	~~199,353~~0	0	0	08,562,336	0	0	~~199,353~~0			0			0			0			0		0		0		8,562,336
	Total	18,470,936	30,549,502	61,089	1,093,016	26,662	0	0	0	18,558,687	31,642,518
Foreign		BankBoston N.A.			5,283,649			5,406,951			0			0			0			0			0		0		5,283,649		5,406,951
	Principal owed	18,362,156	30,003,081	61,089	1,093,016	26,662	0	0	0	12,963,207	31,096,097
Foreign		ABN Amro Bank			0			0			1,447,168			118,293			0			0			0		0		1,447,168		118,293
	Rate	2.62%	3.45%	5.76%	5.76%	0	0	0	0	0	0
Foreign		Banco de la Nación Argentina			0			0			0			123,465			0			0			0		0		0		123,465
	Long Term portion short term
Foreign		Banco Alfa S.A.			0			0			382,180			0			0			0			0		0		382,180		0
96,658,480-7	Raboinvestment Chile S.A.	913,875	191,766	0	0	0	0	0	0	913,875	191,766
		Total			38,070,550			30,354,932			1,829,348			241,758			4,714,159			169,414			0		0		44,614,057		30,766,104
97,006,000-6	Banco de Credito e Inversiones	0	0	0	0	1,459,256	1,470,096	0	0	1,459,256	1,470,096
		Principal owed			37,821,940			30,087,567			1,829,348			241,758			4,714,159			0			0		0		44,365,447		30,329,325
Foreign	Banco de Boston	0	0	76,086	0	0	0	0	0	76,086	0
		Rate			2.62	%		3.45	%		5.76	%		5.76	%		0			0			0		0		0		0
Foreign	Security Bank	347,198	0	0	0	0	0	0	0	347,198	0
		Long Term portion short term
Foreign	Dresdner Bank Lateiamerica	40,032	43,872	0	0	0	0	0	0	40,032	43,872
96,658,480-7		Raboinvestment Chile S.A.			762,098			82,613			0			0			0			0			0		0		762,098		82,613
Foreign	Citibank N.A.	6,753,378	652,607	0	0	0	0	0	0	6,753,378	652,607
97,006,000-6		Banco de Crédito e Inversiones			0			0			0			0			1,560,252			1,590,064			0		0		1,560,252		1,590,064
Foreign	~~Comerica Bank~~	~~153,637~~Banco de Boston N.A.	0	0	0212,669	0	0	0217,005	0	~~153,637~~	0			0			0			0			0		0		212,669		217,005
Foreign	~~Banco de Chile New York Branch~~	~~163,473~~Security Bank	0	0	0346,469	0	0	021,253	0	~~163,473~~	0			0			0			0			0		0		346,469		21,253
Foreign	~~The Bank of Nova Scotia~~	~~93,527~~Dresdner Bank Lateiamerica	0	0	076,514	0	0	091,779	0	~~93,527~~	0			0			0			0			0		0		76,514		91,779
Foreign	~~Banco Rabobank Ireland PLC~~	~~1,712,647~~Citibank N.A.	~~937,407~~	0	011,855,522	0	0	0307,692	0	~~1,712,647~~	~~937,407~~0			0			0			0			0		0		11,855,522		307,692
Foreign	~~BankBoston Banco Multiplo S/A~~	~~221,494~~Comerica Bank	0	0	01,552,951	0	0	075,344	0	~~221,494~~	0			0			0			0			0		0		1,552,951		75,344
Foreign	~~BankBoston, N.A.~~	~~2,792,368~~Banco de Chile New York Branch	~~2,501,033~~	0	059,687	0	0	0	0	~~2,792,368~~	~~2,501,033~~0			0			0			0			0		0		59,687		0
Foreign	~~BankBoston.~~	0The Bank of Nova Scotia	~~65,067~~	0	0201,443	0	0	0	0	0	~~65,067~~0			0			0			0			0		0		201,443		0
	Total	13,191,629	4,391,752	76,086	0	1,459,256	1,470,096	0	0	14,726,971	5,861,848
Foreign		Banco Rabobank Ireland PLC			21,966,034			1,447,100			0			0			0			0			0		0		21,966,034		1,447,100
	Principal owed	7,134,452	0	0	0	1,430,369	1,432,889	0	0	8,564,821	1,432,889
Foreign		BankBoston.			0			0			63,367			58,083			0			0			0		0		63,367		58,083
	Rate	2.89%	3.51%	0	0	6.70%	6.70%	0	0	0	0
		Total			37,033,387			2,242,786			63,367			58,083			1,560,252			1,590,064			0		0		38,657,006		3,890,933
		Principal owed			34,033,927			0			0			0			1,445,374			1,442,644			0		0		35,479,301		1,442,644
		Rate			2.89	%		3.51	%		0			0			6.70	%		6.70	%		0		0		0		0

	~~2003~~	2003
	%	%
Total amount of liabilities in foreign currency:	~~96.00~~		95.20
Total amount of liabilities in local currency:	~~4.00~~		4.80

NOTE 13 – BANK AND FINANCIAL INSTITUTIONS LONG-TERM

							~~Date close actual period~~		~~Date close pass~~							Date close actual period				Date close pass period
									period
																Total Long				Total Long
							Total Long		Total Long
																Term to close				Term to close
							Term to close		Term to close
							More 1 year			More 2 year		More 3 year		More 5 year		The financial				The financial
			More 1 year	More 2 year	More 3 year	More 5 year	The financial		The financial
				Currency			up to 2 year			up to 3 year		Up to 5 year		Up to 10 year		Statements				Statements
		Currency	up to 2 year	up to 3 year	Up to 5 year	Up to 10 year	Statements		statements
RUT		Bank or financial institution					ThCh$			ThCh$		ThCh$		ThCh$		ThCh$		Rate		ThCh$
RUT	Bank o financial institution		ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	Rate	ThCh$
		Short Term
	Short Term
96,658,480-7		Raboinvestment Chile S.A.			Dollar			1,398,240			2,621,700		5,418,180		0		9,438,120		Libor+1.875%		10,681,976
96,658,480-7	Raboinvestment Chile S.A.	Dollar	731,560	2,194,680	7,315,600	0	10,241,840	Libor+1.875%	10,212,363
97,006,000-6		Banco de Credito e Inversiones			U.F.			1,445,374			1,445,374		722,688		0		3,613,436		6.70%		5,049,254
97,006,000-6	Banco de Credito e Inversiones	U.F.	1,430,369	1,430,369	715,184	0	3,575,922	6.70	5,015,112
Foreign		Security Bank			Dollar			652,512			652,512		326,256		0		1,631,280		Libor+1.500%		1,993,969
Foreign	~~Security Bank~~	~~Dollar~~Dresdner Bank Lanteiamerica	~~682,789~~	~~682,789~~	~~341,395~~Dollar	0	~~1,706,973~~	~~Libor+~~1~~.500%~~,398,240	0		1,398,240		1,398,240		0		4,194,720		Libor+1.900%		4,272,791
Foreign	~~Dresdner Bank Lanteiamerica~~	~~Dollar~~Comerica Bank	~~1,463,120~~	~~1,463,120~~	~~1,463,120~~Dollar	0	~~4,389,360~~	~~Libor+1.900%~~2,996,428	~~4,084,945~~		2,996,428		2,995,729		0		8,988,585		Libor+1.350%		10,681,976
Foreign	~~Comerica Bank~~	~~Dollar~~Citibank N.A.	~~3,135,466~~	~~3,135,466~~	~~4,702,468~~Dollar	0	~~10,973,400~~	~~Libor+1.350%~~11,585,417	0		11,585,417		5,792,709		0		28,963,543		Libor+1.000%		41,303,642
Foreign	~~Citibank N.A.~~	~~Dollar~~Banco Rabobank Ireland PLC	~~12,122,994~~	~~12,122,994~~	~~12,122,994~~Dollar	0	~~36,368,982~~	~~Libor+1.000%~~0	~~39,487,804~~		0		0		0		0		8.00%		20,295,755
Foreign	~~BankBoston N.A.~~	~~Dollar~~Banco de Chile New York Branch	~~49,380,300~~	~~30,010,946~~	0Dollar	0	~~79,391,246~~	~~11.25~~3,006,216	~~73,885,233~~		3,006,216		4,474,368		0		10,486,800		Libor+1.250%		0
Foreign	~~BankBoston Banco Multiplo S/A.~~	~~Dollar~~The Bank of Nova Scotia	0	0	~~5,852,480~~Dollar	0	~~5,852,480~~	~~11.25~~5,243,400	0		5,243,400		6,991,200		0		17,478,000		Libor+1.150%		0
Foreign	~~Rabobank Ireland PLC~~	~~Dollar~~Bank Boston	~~20,849,460~~	0	0Other Currency	0	~~20,849,460~~	~~8.00~~46,085	~~19,403,490~~		0		0		0		46,085		0		43,517
Foreign	Banco de Chile New York	Dollar	1,572,854	3,145,708	6,254,839	0	10,973,401	Libor+1.250%	0
		Total						27,771,912			28,949,287		28,119,370		0		84,840,569				94,322,880
Foreign	The Bank of Nova Scotia	Dollar	0	5,486,700	12,802,300	0	18,289,000	Libor+1.150%	0
Foreign	Bank Boston	Other Currency	5,701	0	0	0	5,701	0	0
Foreign	BankBoston	Dollar	0	0	0	0	0	0	73,778
	Total		91,374,613	59,672,772	51,570,380	0	202,617,765		152,162,725

	2003
	%

Total amount of liabilities in foreign currency:		98.24
Total amount of liabilities in local currency:		1.76

~~NOTE~~Los 14préstamos –otorgados ~~SHORT~~por Masisa ~~TERM~~Overseas Ltd. y Masisa Inversiones Limitada a la filial Masisa do ~~AND~~ Brasil ~~LONG~~Limitada ~~TERM~~a ~~BONDS~~través de BankBoston, ascendentes a la suma total de US$110,023,218.88, que constan en “Promissory Notes” emitidos por BankBoston N.A. Nassau Branch de que son titulares Masisa Overseas Ltd. y Masisa Inversiones Limitada y en “Repasses de Empréstimo Externo - Contratos de Empréstimo” firmados por Masisa do Brasil Limitada a favor de BankBoston Banco Multiplo S.A. y BankBoston N.A., se presentan rebajando las correspondientes deudas por igual monto que la filial Masisa do Brasil Limitada mantiene con BankBoston Multiplo S.A. y BankBoston N.A., en consideración a que los documentos en los que constan estas operaciones permiten saldarlas con el sólo aviso dado al banco con la anticipación establecida en los respectivos documentos, y ha que la sociedad ha decidido saldarlas debido a que el costo de dichas transacciones, frente al de opciones distintas de financiamiento, no justifica mantenerlas.

Adicionalmente, y como consecuencia de lo anterior, los intereses generados por los “Promissory Notes” y por los “Repasses de Empréstimo Externo – Contratos de Empréstimo” se presentan “netos” en el estado de resultados.

The loans granted by Masisa Overseas Ltd and Masisa Inversiones Limitada to the subsidiary Masisa do Brasil Limitada through BankBoston, that rise to the amount of US$110,023,218.88, as shown in “Promissory Notes” issued by BankBoston N.A. Nassau Branch of which are holders Masisa Overseas Ltd. and Masisa Inversiones Limitada and in “Repasses de Empréstimo Externo - Contratos de Empréstimo” signed by Masisa do Brasil Limitada of wich are beneficiaries BankBoston Banco Múltiplo S.A. and BankBoston N.A., are presented reducing the corresponding debts for the same amount that the subsidiary Masisa do Brasil Limitada maintains with BankBoston Multiplo S.A. and BankBoston N.A., in consideration that the documents in which this operations are established allowed to sell out them with the only advise to the bank with the anticipation established in the respective documents, and as the Company have decided to sell out them due to the cost of such transactions, whne compared to other financing options, is not justified to maintain them.

NOTE 14 - SHORT TERM AND LONG TERM BONDS

Private Placement: Corresponds to a private placement bonds issued by the subsidiary Masisa Overseas Ltd., and acquired by some of the main Insurance Companies of the United States of America.

Maturities:

Bonds A series : ~~matures on May 15, 2003 and interest are paid every six months~~ in ~~May~~the ~~and~~previous ~~november of each~~ year. ~~Bonds~~ corresponds Bto ~~series:~~the ~~matures~~ones inthat 5became ~~yearly~~due ~~installments of US$ 9 Million, starting on May 15, 2004~~ and ~~finishing~~liquidated ~~May~~dated 15~~, 2008, and interest are paid every six months in May and November of each year~~-05-2003.

Identification Number	Serie	Nominal amount	Currency	Interest	Last maturity	Periodicity		Value		Place of the transaction
		outstanding				Interest Payment	Capital Payment	03/31/2003	03/31/2002	Chile or Foreign
Short term Portion of Long Term Bond
Private Placement	A	18,289,000	Dollar	7.82%	15-05-2003	6 Months	2003	18,833,270	502,827	Foreign
Private Placement	B	0	Dollar	0	15-05-2008	6 Months	2004	1,009,754	932,865	Foreign
Total Short Term Portion								19,843,024	1,435,692
Long Term Bond
Private Placement	A	0	Dollar	7.82%	15-05-2003	6 Months	2003	0	17,020,605	Foreign
Private Placement	B	32,920,200	Dollar	8.06%	15-05-2008	6 Months	2004	32,920,200	30,637,089	Foreign
Total Long Term Portion								32,920,200	47,657,694

Bonds B series: matures in 5 yearly installments of US$9 Million, starting on May 15, 2004 and finishing May 15, 2008, and interest are paid every six months in May and November of each year.

Identification
Number

Serie

Nominal amount
outstanding

Currency

Interest

Last maturity

Periodicity

Value

Place of the
transaction

Interest
Payment

Capital
Payment

03/31/2003

03/31/2002

Chile or
Foreign

Short term Portion of Long Term Bond

Private Placement

Dollar

7.82

6 Months

2003

17,981,189

Foreign

Private Placement

6,292,080

Dollar

8.06

6 Months

2004

6,623,131

330,036

Foreign

Total Short Term Portion

6,623,131

18,311,225

Long Term Bond

Private Placement

25,168,320

Dollar

8.06

6 Months

2005

25,168,320

32,045,929

Foreign

Total Long Term Portion

25,168,320

32,045,929

NOTE 15 - PROVISIONS AND WRITE-OFFS


a)	Allowance for trade accounts receivable, notes receivable, sundry debtors and inventories.

The balance of these allowances amounts to ThCh$2,~~176~~198,~~518~~ 293 in 2003 (ThCh$1,~~811~~932,~~029~~ 608 in 2002), which have been deducted from the respective captions.

b)	Outstanding provisions at the end of each period:

	2003	2002
		2003 ThCh$		2002 ThCh$
Current liabilities	~~ThCh$~~	~~ThCh$~~
Provision for vacation	~~650,875~~	~~637,472~~	821,378		734,495
Participation	~~79,343~~	~~1,118,483~~	5,992		322,479
Social contribution	63,177	0
Auditing provision			34,193		12,116
Bonds Provision	13,085	181,650
Gratification			86,433		0
Plan Stoppage Provision	168,769	272,245
Social contribution			191,030		0
Provision commission, insurance, freight	1,140,324	852,568
Plan Stoppage Provision			300,710		348,081
Forestry services	115,389	0
Provision commission, insurance, freight			923,134		887,508
Administration services	296,953	0
Customs house exports transportation expenses			250,688		0
Other provisions	204,904	163,396
Chipping production costs provision			40,379		0
Total	2,732,819	3,225,814
Other provisions			232,649		0
Long -Term liabilities
Total			2,886,586		2,304,679
Equity investment (negative equity) in
Long – Term liabilities
Masnova de Mexico S.A. de C.V.	21,420	0
Equity investment (negative equity) in Masnova de México S.A. de C.V.			33,922		0
Total	~~21,420~~	0	33,922		0

NOTE 16 - MINORITARY INTEREST

The main components of this item are as follows:

	~~Included in the liabilities~~	Included in the liabilities	~~Included in the net income for the period~~					Included in the net income for the period
	~~2003~~	~~2002~~2003	~~2003~~	~~2002~~	2002			2003			2002
Forestal Tornagaleones S.A.	~~24,329,503~~	~~24,040,846~~	~~(100~~24,~~501)~~384,642	~~628,206~~		23,608,748			(325,900	)		701,367
Forestal Argentina S.A.	~~20,088,254~~	~~17,778,100~~	~~(60~~19,~~937)~~292,049	~~709,479~~		18,486,785			(213,160	)		1,017,000
Maderas y Sinteticos del Peru S.A.C.	(54)	(444)	(154)	39
Maderas y Sintéticos del Perú S.A.C.			60			(456	)		(268	)		47
Total	~~44,417,703~~	~~41,818,502~~	~~(161~~43,~~592)~~676,751	~~1,337,724~~		42,095,077			(539,328	)		1,718,414

~~NOTE 17 - SHAREHOLDERS' EQUITY~~ 26

NOTE 17 - SHAREHOLDERS’ EQUITY


a)	The movement on capital and reserve accounts during 2003 and 2002 were as follows:

	~~2003~~	2003
						Accumulated
		Paid-in capital			Reserve de Revalorization de capital			Other Reserves			Reserve for future dividends			Accumulated profit		Accumulated deficit during development period		Current Earning
		Reserve de		Reserve for		deficit during
		ThCh$			ThCh$			ThCh$			ThCh$			ThCh$		ThCh$		ThCh$
	Paid-in capital	Revalorization	Other	future	Accumulated	development	Current
Balance as of December 31			170,326,091			0			34,487,127			84,189,903			13,342,806		0		10,476,879
		de capital	Reserves	dividends	profit	period	Earning
Allocation of income			0			0			0			10,476,879			0		0		(10,476,879	)
	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$
Definitive dividend of the previous exercise			0			0			0			(3,133,706	)		0		0		0
Balance as of December 31	170,326,091	0	34,487,127	84,189,903	13,342,806	0	10,476,879
Capital Increase with shares issue			0			0			0			0			0		0		0
Allocation of income	0	0	0	0	10,476,879	0	(10,476,879)
Deficit during subsidiary development period			0			0			0			0			0		0		0
Pay of dividends	0	0	0	0	0	0	0
Reserve for foreign currency translation adjustments			0			0			(5,546,346	)		0			0		0		0
Capital Increase with shares issue	0	0	0	0	0	0	0
Forestry reserves Increase			0			0			1,397,996			0			0		0		0
Deficit during subsidiary development period	0	0	0	0	0	0	0
Price-level restatement of equity			0			1,873,587			379,358			1,053,870			146,770		0		0
Reserve for foreign currency translation adjustments	0	0	1,782,857	0	0	0	0
Net income for the period			0			0			0			0			0		0		689,859
Forestry reserves Increase	0	0	1,590,390	0	0	0	0
Balance			170,326,091			1,873,587			30,718,135			92,586,946			13,489,576		0		689,859
Price-level restatement of equity	0	851,630	172,436	420,950	119,098	0	0
			0			0			0			0			0		0		0
Net income for the period	0	0	0	0	0	0	75,748
Balance	170,326,091	851,630	38,032,810	84,610,853	23,938,783	0	75,748
	0	0	0	0	0	0	0

	~~2002~~	2002
						Accumulated
		Paid-in capital			Reserve de Revalorization de capital			Other Reserves		Reserve for future dividends			Accumulated profit		Accumulated deficit during development period		Current Earning
		Reserve de		Reserve for		deficit during
		ThCh$			ThCh$			ThCh$		ThCh$			ThCh$		ThCh$		ThCh$
	Paid-in capital	Revalorization	Other	future	Accumulated	development	Current
Balance as of December 31			165,365,137			0			22,338,563		67,346,959			12,954,180		0		20,541,208
		de capital	Reserves	dividends	profit	period	Earning
Allocation of income			0			0			0		20,541,208			0		0		(20,541,208	)
	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$
Definitive dividend of the previous exercise			0			0			0		(6,162,362	)		0		0		0
Balance as of December 31	165,365,137	0	22,338,563	67,346,959	12,954,180	0	20,541,208
Capital Increase with shares issue			0			0			0		0			0		0		0
Allocation of income	0	0	0	0	20,541,208	0	(20,541,208)
Deficit during subsidiary development period			0			0			0		0			0		0		0
Pay of dividends	0	0	0	0	0	0	0
Reserve for foreign currency translation adjustments			0			0			5,578,119		0			0		0		0
Capital Increase with shares issue	0	0	0	0	0	0	0
Price-level restatement of equity			0			992,191			134,031		496,516			77,725		0		0
Deficit during subsidiary development period	0	0	0	0	0	0	0
Net income for the period			0			0			0		0			0		0		6,729,407
Reserve for foreign currency translation adjustments	0	0	639,153	0	0	0	0
Balance			165,365,137			992,191			28,050,713		82,222,321			13,031,905		0		6,729,407
Price-level restatement of equity	0	(661,460)	(89,354)	(269,388)	(133,982)	0	0
Restated balance			171,152,917			1,026,918			29,032,488		85,100,102			13,488,022		0		6,964,936
Net income for the period	0	0	0	0	0	0	3,862,591
Balance	165,365,137	(661,460)	22,888,362	67,077,571	33,361,406	0	3,862,591
Restated balance	171,649,012	(686,595)	23,758,120	69,626,519	34,629,139	0	4,009,369


b)	Numbers of shares

Series	Numbers shares subscribed		Numbers paid shares		Numbers shares with voting rights

Unique		928,514,743		928,514,743		928,514,743


c)	Capital (amount ThCh$)

Series	~~Subscribed Capital~~	~~Paid~~Subscribed Capital			Paid Capital
Unique	~~171,177,721~~	~~171,177,721~~	172,199,678			172,199,678


d)	Other Reserves

1) Forest Reserves

Forestry reserves accounts corresponding to Masisa S.A. ownership of Forestal Tornagaleones S.A. and Forestal Argentina S.A., are classified under “other Reserves” due to the ~~grown~~ recognition of the grown in forestry resources. The balance as of ~~March~~June 3130, 2003 was ThCh$1312,~~003~~879,~~762~~ 507 (ThCh$7,~~903~~959,~~095~~372 2002)., and the account “reserve for foreign currency translation adjustment” detailed as follows:

2) Reserve for foreign currency translation adjustments

Corresponds to the net difference between the Consumer’s Price Index and the United States dollar at the end of each period of the investments in foreign countries and of the liabilities associated to such investments, according to the Technical Bulletin N°º64, The following table depicts such adjustment according to the foreign subsidiary that originated it:

Balances are made of:

	~~Balance as of~~	~~Exchange~~Balance ~~difference~~as ~~originated in the period~~of		~~Balance as of~~	Exchange difference originated in the period					Balance as of
	~~31/12/2002~~	~~Investment~~31/12/2002	~~Liabilities~~	~~03/31/2003~~	Investment			Liabilities		06/30/2003
	~~ThCh$~~	ThCh$	~~ThCh$~~	~~ThCh$~~	ThCh$			ThCh$		ThCh$
Masisa Argentina S.A.	~~18,826,558~~	~~1,391,766~~	~~(714~~18,~~133)~~938,956	~~19,504,191~~		(4,823,413	)		851,307		14,966,850
Forestal Argentina S.A.	~~2,234,825~~	~~155,466~~	~~(42~~2,~~422)~~248,167	~~2,347,869~~		(455,163	)		124,199		1,917,203
Masisa do Brasil Limitada.	~~1,979,550~~	~~1,616,773~~	~~(782~~1,~~979)~~991,368	~~2,813,344~~		(4,032,757	)		3,531,846		1,490,457
Masisa Mexico S.A. de C.V.	~~136,769~~	~~301,071~~	~~(142~~137,~~693)~~585	~~295,147~~		(1,160,110	)		417,769		(604,756	)
Masisa Servicios Mexico S.A. de C.V.	2	8	02	10		(24	)		0		(22	)
Masisa Cabrero S.A.	~~68,487~~	0	068,896	~~68,487~~		0			0		68,896
	23,246,191	3,465,084	(1,682,227)	25,029,048
			23,384,974			(10,471,467	)		4,925,121		17,838,628

In ~~September~~June ~~2001~~2002, are as follows:

	~~Balance as of~~	~~Exchange~~Balance ~~difference~~as ~~originated in the period~~of		~~Balance as of~~	Exchange difference originated in the period					Balance as of
	31/12/2002	Investment	Liabilities	03/31/2003
		31/12/2001			Investment		Liabilities			06/30/2002
	~~ThCh$~~	ThCh$	~~ThCh$~~	~~ThCh$~~	ThCh$		ThCh$			ThCh$
Masisa Argentina S.A.	~~13,427,337~~	~~596,149~~	~~(120~~13,~~288)~~522,952	~~13,903,198~~		5,334,032		(1,069,749	)		17,787,235
Forestal Argentina S.A.	~~1,695,848~~	~~57,473~~	~~(15~~1,~~676)~~707,924	~~1,737,645~~		483,213		(131,797	)		2,059,340
Masisa do Brasil Limitada.	0	~~563,546~~	~~(417,764)~~0	~~145,782~~		4,662,468		(3,504,819	)		1,157,649
Masisa Cabrero S.A.	68,400	0	0	68,400
Masisa Mexico S.A.de C.V.			0			189,172		(189,170	)		2
	15,191,585	1,217,168	(553,728)	15,855,025
Masisa Servicios Mexico S.A.de C.V.			0			2		0			2
Masisa Cabrero S.A.			68,888			0		0			68,888
			15,299,764			10,668,887		(4,895,535	)		21,073,116


e)	Dividend Policy

The annual dividend policy of Masisa S.A. corresponds to the distribution of not less than 30% and not more than a 50% of the Net Income of the period.

f)	Dividend Paid

Dividends paid, shown in the equity variation table, are detailed as follows:

Dividend	~~Date of payment~~	~~Dividend~~Date ~~per~~of ~~Share~~payment	~~Historical Dividend~~	Dividend per Share		Historical Dividend
2001
No31	May, 2002	6.63680	6,162,362
Nº 32			May, 2003		3.37497		3,133,706
2000
No30	May, 2001	8.20109	7,558,032
Nº 31			May, 2002		6,63680		6,162,362

NOTE 18 - OTHERS NON OPERATING INCOME AND EXPENSES


a)	Other non operating income:

The main concepts and balances under this heading are as follows:

	~~2003~~	~~2002~~2003		2002
	~~ThCh$~~	ThCh$		ThCh$
Indemnity	30,181	0
Revenues for sales of services			10,699		0
Leasing interests	1,446	0
Indemnity			36,014		0
Reimbursement charged to Masisa	3,051	0
Leasing interests			2,830		0
Industrial facilities lease margin	110,055	0
Lease margin of industral facilities			179,222		0
Reverse provision for non-operating receivables	0	2,053,512
Profits for shares sales			31,731		0
Profit on sales of raw material waste and other	22,093	270,288
Reverse provision for non-operating receivables			0		2,068,052
Total	166,826	2,323,800
Profits for sales of fixed assets, raw materials, spare parts and materials			114,706		407,068
Other			70,430		222,895
Total			445,632		2,698,015


b)	Other non-operating expenses:

The main concepts and balances under this heading are as follows:

	~~2003~~	~~2002~~2003		2002
	~~ThCh$~~	ThCh$		ThCh$
Expenses for lease goods	19,708	0
Expenses for leasing assets			35,793		0
Industrial facility temporary stop	102,697	0
Temporary stoppage of industrial facility			98,143		0
Loss sales fixed assets	~~43,307~~	0	35,858		0
Depreciation of non-capitalized fixed assets	~~43,167~~	~~33,677~~	201,215		130,882
Donations	~~28,252~~	0	12,164		20,351
Sinister indemnity	2,772	8,531
Other			100,187		78,118
Other	19,908	37,333
Total			483,360		229,351
Total	259,811	79,541

NOTE 19 - PRICE/LEVEL RESTATEMENT

The effect of the application of price-level restatements was as follows:

	~~Adjustment index~~	Adjustment index		06/30/2003		06/30/2002
		03/31/2003	03/31/2002
Assets (debit) / credit
Assets (debit) / credit
Inventories		CPI		32,184		66,368
Inventories	CPI	21,538	(65,115)
Fixed assets		CPI		1,669,080		874,267
Fixed assets	CPI	748,671	(591,987)
Investments in related companies		CPI		1,466,944		723,191
Investments in related companies	CPI	648,205	2,668
Others non monetary assets		CPI		(88,480	)	394,342
Others non monetary assets	CPI	4,561	(302,854)
Charges and cost accounts		CPI		219,544		230,428
Charges and cost accounts	CPI	116,360	(4,156)
Total (debit) / credit				3,299,272		2,288,596
Total (debit) / credit		1,539,335	(961,444)
Liabilities (debit) / credit
Liabilities (debit) / credit
Financial equity Individual		CPI		(3,453,586	)	(1,760,748	)
Financial equity Individual	CPI	(1,564,114)	1,197,273
Financial liabilities		CPI		(118,223	)	(956,616	)
Financial liabilities	CPI	(78,477)	650,954
Liabilities non monetary		CPI		(46,190	)	(51,175	)
Liabilities non monetary	CPI	(3,495)	50,793
Profits account		CPI		(200,031	)	(301,655	)
Profits account	CPI	(105,761)	5,208
Total (debit) / credit				(3,818,030	)	(3,070,194	)
Total (debit) / credit		(1,751,847)	1,904,228
(Loss) Profits price/level restatement account				(518,758	)	(781,598	)
(Loss) Profits price/level restatement account		(212,512)	942,784

NOTE 20 - FOREIGN CURRENCY

The breakdown of all foreign currency accounts is as follows:

		~~Amount~~		Amount
Account	~~Currency~~	~~03/31/2003~~Currency	~~03/31/2002~~	06/30/2003		06/30/2002
Cash and others	~~Dollar~~	~~49,294~~Dollar	~~341,483~~	24,693		339,688
Cash and others	~~Other currency~~	~~40,593~~Other currency	0	(13	)	0
Time deposits	~~Dollar~~	~~(97,340)~~Dollar	0	(930,590	)	0
Accounts receivable	~~Dollar~~	~~140,912~~Dollar	0	(133,582	)	0
Accounts receivable	~~Other currency~~	~~(6,715)~~Other currency	0	2,571		0
Accounts receivable from related companies	~~Dollar~~	~~563,681~~Dollar	0	328,371		1,362,719
Others long-term assets	~~Dollar~~	~~(40,987)~~Dollar	0	(6,255	)	0
Others long-term assets	~~Other currency~~	~~964~~Other currency	0	(1,329	)	0
Others assets	~~Dollar~~	~~636,945~~Dollar	~~219,161~~	59,557		(1,040,587	)
Total (debit) / credit		1,287,347	560,644
Others assets		Other currency		10,416		0
Financial liabilities	Dollar	1,367,592	(730,600)
Total (debit) / credit				(646,161	)	661,820
Financial liabilities	~~U.F.~~	~~(3,364)~~Dollar	~~(243)~~	390,084		0
Accounts payable	Dollar	20,425	27,937
Financial liabilities		U.F.		(870,090	)	(973,628	)
Accounts payable	Other currency	(46,853)	(1,851)
Short term portion of long term liabilities		Dollar		28,760		0
Other short term liabilities	Dollar	(341,866)	(682,928)
Accounts payable		Dollar		23,546		42,765
Other short term liabilities	Other currency	(14,950)	(12,772)
Accounts payable		Other currency		(136,795	)	(48,030	)
Exchange insurance	Dollar	0	(995,690)
Other short term liabilities		Dollar		608,793		(10,409	)
Other long term liabilities	Dollar	(1,775,749)	0
Other short term liabilities		Other currency		(2,076	)	(393,234	)
Other long term liabilities	Other currency	95,371	0
Exchange rate forward		Dollar		(479,105	)	(406,600	)
Exchange differences in Masisa Argentina S.A.	Argentine pesos	388,347	0
Other long term liabilities		Dollar		169,806		0
Exchange differences in Forestal Argentina S.A.	Argentine pesos	135,716	(4,047,932)
Exchange differences in Masisa Argentina S.A.		Argentine pesos		419,634		(2,926,307	)
Exchange differences in Masisa do Brasil Limitada	Real	(125,508)	(129,907)
Exchange differences in Forestal Argentina S.A.		Argentine pesos		246,315		0
Exchange differences in Masisa Mexico	Mexican pesos	(414,682)	0
Exchange differences in Masisa do Brasil Limitada		Real		8,425		(1,221,847	)
Exchange differences in Masisa Peru	Peruvian Sol	(1,804)	0
Exchange differences in Masisa Mexico		Mexican pesos		(235,991	)	0
Total (debit) / credit		~~(717,325)~~	~~(6,573,986)~~	171,306		(5,937,290	)
Total		~~570,022~~	~~(6,013,342)~~	(474,855	)	(5,275,470	)

The exchange difference corresponding to the foreign subsidiaries included under this note is presented in one single line, as Exchange Differences, as set forth the Technical Bulletin N~~(degree)~~º64 of the Chilean Institute of accountants, and is informed in the Currency column indicating the origin country'’s currency.

NOTE 21 - DERIVATIVES (HEDGES AND SWAPS)

~~Description of the contract~~

~~ProtectedValue~~

~~Affected~~Description ~~Account~~of the contract

Affected Account

Type

~~Contract~~

~~Value~~Contract

~~Maturity~~

~~Class~~

~~Buy/Sale~~Value

~~Name~~

~~Amount~~Maturity

~~Name~~Class

~~amount~~

~~Paid in~~

~~Not paid in~~Buy/Sale

Name

Amount

Protected Value

Name

amount

Paid in

Not paid in

~~CCPE~~

~~13,168,080~~CCPE

~~4 Quarter 2006~~

~~Interest Rate~~

B12,584,160

~~Long Term Debt~~

~~13,468,605~~4 Quarter 2006

~~13,301,871~~

~~Short~~Interest ~~term portion financial debt~~Rate

~~166,734~~

Long Term Debt

12,705,947

12,615,075

Short term portion financial debt

90,872

~~CCPE~~

~~7,315,600~~CCPE

~~3 Quarter 2003~~

~~Exchange Rate~~

B6,991,200

~~Working Capital~~

~~7,315,600~~3 Quarter 2003

~~7,110,325~~

~~Others~~Exchange ~~current liabilities~~Rate

~~205,275~~

Working Capital

6,991,200

6,414,194

Others current liabilities

577,006

CCPE

5,852,480

2 Quarter 2003

Exchange Rate

Working Capital

5,852,480

5,077,266

Others current liabilities

775,214

CCPE

219,468

2 Quarter 2003

Exchange Rate

Working Capital

219,468

194,957

Others current liabilities

24,511

NOTE 22 - CONTINGENCIES AND COVENANTS - GUARANTEES

The Contingencies and Covenants assumed by the Company as of the end of the periods are detailed as follows:

- – Forestal Tornagaleones S.A. ~~a) Guarantees As of March 31, 2003 and 2002 the Company has not give any document as guaranty~~

~~b) Direct Guarantees On October 15, 1999 the subsidiary subscribed~~ a loan with Rabobank Investments Chile S.A., which was guaranteed with land and plantations. The book value of those plantations as of March 31, 2003 is ThCh$10,436,891 (ThCh$9,996,249 in 2002) ~~and the value of the land was ThCh$2,877,255 (ThCh$3,803,168 in 2002) . In addition, the agreement includes other clauses normally used in this kind of transactions.~~Guarantees

~~c) Indirect Guarantees During~~As ~~2001 the subsidiary became a joint and several debtor in favor~~ of ~~the Dresdner~~June ~~Bank and Security Bank issued to the subsidiary Forestal Argentina S.A. by the bank. The loan was used to finance new plantations~~30, ~~purchase of~~ ~~land~~2003 and ~~rescheduling of~~2002 ~~its financial debt. Additionally~~ the ~~loan~~Company ~~agreement establishes~~ has ~~for~~not ~~the~~give ~~guarantor~~any ~~some~~document ~~normal obligations for this kind of operations such~~ as: guaranty

~~To maintain a~~ b) ~~shareholders' equity of~~Direct ~~no less than US$80,000,000, obligation subject to an exemption by means of an authorization of the bank.~~Guarantees

ToOn ~~maintain~~October 15, 1999 the subsidiary subscribed a ~~leverage~~loan with Rabobank Investments Chile S.A., which was guaranteed ~~lower~~ with orland ~~equal~~and toplantations. 0The book value of those plantations as of June 30, 2003 is ThCh$9,844,669 (ThCh$9,977,325 in 2002) and the value of the land was ThCh$2,894,432 (ThCh$3,795,967 in 2002).4 ~~times~~In addition, the agreement includes other clauses normally used in this kind of transactions.

Toc) ~~maintain~~Indirect ~~a ratio of shareholders' equity and long term deposits, to fixed assets; equal or higher than 1; and~~Guarantees

ToDuring ~~maintain~~2001 the subsidiary became a ~~ratio~~joint and several debtor in favor of ~~EBITDA~~the toDresdner ~~financial~~Bank ~~expenses~~and ~~higher~~Security orBank ~~equal~~issued to 1the subsidiary Forestal Argentina S.5A. ~~times~~by the bank. The loan was used to finance new plantations, purchase of land and rescheduling of its financial debt. Additionally the loan agreement establishes for the guarantor some normal obligations for this kind of operations such as:

~~d) Trials~~• AsTo ~~of March~~maintain 31a ~~2003,~~shareholders’ ~~the~~equity ~~company have an award~~ of ~~damages~~no ~~trial~~less ~~against~~than ~~it. The plaintiff claims for ThCh~~US$~~404~~80,000 ~~because of damages in lands of his property made by~~, ~~in opinion of the plaintiff~~000, ~~Forestal Tornagaleones~~ ~~S.A.~~obligation ~~The~~subject ~~company counts with all the background and studies~~ to ~~take~~an ~~down~~exemption ~~the~~by ~~suit~~means soof ~~the~~an ~~lawyers~~authorization ~~estimates~~of ~~that~~ the ~~possibilities~~ ~~for the plaintiff to succeed are minimal~~bank.

~~- Masisa Overseas Ltd. The~~• ~~Company~~To ~~and~~maintain ~~its~~a ~~subsidiary Masisa Argentina S.A.~~leverage ~~and~~lower ~~Maderas~~or ~~y Sinteticos~~equal deto ~~Mexico S~~0.A.4 ~~de C~~times.V., had granted loans subscribed by the subsidiary Masisa Overseas Ltd. This establishes the fulfillment of some obligations that are normal in this kind of agreement, such as the ones as follows, in the specific terms and conditions as appears in the respective loan agreement:

~~Maintenance~~• To maintain a ratio of ~~Properties needed~~ ~~for~~shareholders’ ~~the~~equity ~~normal~~and ~~course~~long ofterm ~~business.~~deposits, to fixed assets; equal or higher than 1; and

~~The forbiddance to giving~~• ~~some guarantees over~~To ~~their assets, with~~maintain ~~the exeption~~a ratio of ~~the~~EBITDA ~~ones~~to ~~that~~financial ~~existed at~~expenses ~~the~~higher ~~time~~or ~~the agreement~~equal ~~was~~to ~~signed~~1.5 ~~and others like pledges over new assets in the normal course of business~~times.

~~The~~All ~~fulfillment~~the above mentioned obligations are fulfilled at the time this finantial statements were presented. For other side, is necessary to mention that, actually, the subsidiary Forestal Argentina S.A. is in process of restructuration of the debt that mintains with the Dresdner ~~obligations~~ ~~established~~Bank, inwhich, ~~all~~among others ~~loans~~requirements ~~contracts~~settled by the respective bank, have meant the replacement of ~~Masisa~~the guarantee granted by Forestal Tornagaleones S.A. orfor ~~its~~one ~~subsidiaries~~of Masisa S.A.

~~The~~d) forbiddance to sell, rent, transfer or other kind of alienation of the company's assets with the exeption of the ones the company commercialize in their ordinary course of business and those assets sells at markets values.Trials

~~The~~As ~~forbiddance~~of ~~to make~~June ~~some~~30 ~~speculative transactions over~~2003, ~~commodities and/or~~the ~~forwards~~company have an award of damages trial against it. The plaintiff claims for ThCh$404, ~~and~~000 because of damages in lands of his property made by, ~~others~~in opinion of the plaintiff, Forestal Tornagaleones S.A. The company counts with all the ~~obligations~~background and studies to take down the suit so the lawyers estimates that the possibilities for the plaintiff to succeed are ~~individualized~~ ~~ahead~~minimal.

~~The~~– ~~obligations relative~~Masisa toOverseas ~~financial indexes must be calculated over a consolidated financial statement basis~~Ltd.

1The Company and its subsidiary Masisa Argentina S. ~~Promissory~~A. ~~Notes~~and Maderas y Sintéticos de México S.A. de C.V., had granted loans subscribed by the subsidiary Masisa Overseas Ltd. This loans establishes the fulfillment of some obligations that are normal in this kind of ~~from~~ ~~Private~~agreement, ~~Placement~~such as the ones as follows, in the specific terms and conditions as appears in the respective loan agreement:

•	Maintenance of Properties needed for the normal course of business.


•	The forbiddance to giving some guarantees over their assets, with the exeption of the ones that existed at the time the agreement was signed and others like pledges over new assets in the normal course of business.


•	The fulfillment of the “Covenants” established in other loans agreements of the Company and/or its subsidiaries - “Cross default”.


•	The forbiddance to sell, rent, transfer or other kind of alienation of the company’s assets with the exeption of the ones the company commercialize in their ordinary course of business and those assets sells at markets values.


•	The forbiddance to make some speculative transactions over commodities and/or forwards, and, other “Covenants” individualized afterwards.

The obligations relative to financial indexes must be calculated over a consolidated financial statement basis

Promissory Notes from Private Placement

In connection with loans obtained in a private placement in the United States during 1997, the Company and its subsidiaries, Masisa Overseas Ltd, are contractually committed to maintain certain covenants, which are summarized as follows:

• Compliance with all laws

• Maintenance of insurance on properties and businesses

• Maintenance of properties in good repair, working order and condition

• Compliance with financial indexes

• Leverage Ratio not higher than 1

• The Company must maintain Consolidated Tangible Net Worth (defined as consolidated stockholders' ’ equity less intangible assets) of not less than an amount equal to the sum of ThCh$~~168~~169,~~051~~120,~~597~~867.

• Financial expenses index not lower than 1.5 ( result before financial expenses and taxes over financial expenses)

• Maintenance of the 100.00% of the ownership in the shareholders' ’ equity of Masisa Overseas Limited and 66.6% of Masisa Argentina S.A.

• Forbiddance to some transactions with related parties

• Make extensible to the owners of the bonds the new real guarantees that Masisa S.A. and/or their subsidiaries establishes in favor of third parties to guarantee new debts or the ones existing at the day of the contract, with different exceptions, including the ones that have to be make for the normal flow of the business, the ones that have to be make to guarantee the prices account balance of new acquisitions; the ones that are related to letter of Credit, between others.

21. Citibank N.A.

The loan entered by the Company with Citibank N. A. for MMUS$58, establishes for the parent and /or their subsidiaries some obligations that are normal in this kind of agreement, such as the ones as follows, in the specific terms and conditions as appears in the respective loan agreement:

• Maintenance of Properties needed for the normal course of business.

• To do transactions with the subsidiaries at market conditions.

• The forbiddance to giving some guarantees over their assets, with the exeption of the ones that existed at the time the agreement was signed and others like pledges over new assets in the normal course of business.

• The forbiddance to sell, rent, transfer or other kind of alienation of the company'’s assets with the exeption of the ones the company commercialize in their ordinary course of business and those assets sells at markets values.

• The forbiddance to make some speculative transactions over commodities and/or forwards.

• Not to introduce changes in the accounting principles with the exeption of those that derives from GAAP.

• The forbiddance to merge the Company with any other firm, end or dissolve it, and to sell or rent the full or an important amount of its assets, properties or business, except in the conditions settled in the agreement.

• To limit its indebtness.

• Maintenance of a debt service ratio over the limits established in the agreement.

• The Company must maintain Consolidated Tangible Net Worth (defined as consolidated stockholders'’ equity less intangible assets) of not less than an amount equal to UF 14,800,000.

• The Company must maintain an Interest Coverage ratio not lower than 3 .

• The Company will not at any time permit the Leverage Ratio (defined as the ratio of consolidated indebtedness to Consolidated Tangible Net Worth) to exceed to 0.7.

All the aforementioned Covenants and restrictions were fulfilled at the time this financial statements were presented.

~~- Comerica Bank~~35


–	Comerica Bank

The loan entered by the Company with Comerica Bank for MMUS$15, establishes for the parent and /or their branch subsidiaries some obligations that are normal in this kind of agreement, such as the ones as follows, in the specific terms and conditions as appears in the respective loan agreement:

• The Company must maintain e insurance over their principal assets following the industry standards.

• The Company must maintain updated accounting books for the parent and its branches companies.

• The Company must follows the current laws and regulations.

• The Company must accomplish and pay all the obligations derivate of loan agreements.

• Maintenance of the normal continuousness of the Company.

• The forbiddance to some guarantees over their assets, with the exeption of the ones that existed at the time the agreement was signed and others like pledges over new assets in the normal course of business.

• To do transactions with the branch subsidiaries at market conditions.

• The forbiddance to merge the company with any other firm, end or dissolve it, and to sell or rent the full or an important amount of it assets, properties or business, except in the conditions settled in the agreement. ~~o To limit the indebtness and lending grants in accordance to the conditions settled in the contract~~

~~The~~• ~~Company~~To ~~must maintain Consolidated Tangible~~limit ~~Net~~the ~~Worth (defined~~indebtness ~~as consolidated stockholders'~~ and ~~equity~~lending ~~less intangible assets)~~grants ofin ~~not~~accordance ~~less~~to ~~than~~the anconditions ~~amount~~settled ~~equal~~in tothe ~~UF 14,800,000~~contract.

• The Company must maintain aConsolidated ~~hedge~~Tangible ~~over~~Net ~~financial~~Worth ~~expenses~~(defined as consolidated stockholders’ equity less intangible assets) of not ~~lower~~less than 3an amount equal to UF 14,800,000.

• The Company ~~will~~must ~~not at~~maintain ~~any~~a ~~time~~hedge ~~permit~~over ~~the~~financial ~~Leverage~~expenses ~~Ratio~~not ~~(defined~~lower asthan ~~the ratio of consolidated indebtedness to Consolidated Tangible Net Worth) to exceed 1 to 1~~3.


•	The Company will not at any time permit the Leverage Ratio (defined as the ratio of consolidated indebtedness to Consolidated Tangible Net Worth) to exceed 1 to 1.


	All the aforementioned Covenants and restrictions were fulfilled at the time this financial statements were presented.

- – Banco de Chile


	The loan entered by the Company with The Banco de Chile for MMUS$15, establishes for the parent and /or their branch subsidiaries some obligations that are normal in this kind of agreement, such as the ones as follows, in the specific terms and conditions as appears in the respective loan agreement:

• The Company will not at any time permit the Leverage Ratio (defined as the ratio of consolidated indebtedness to Consolidated Tangible Net Worth) to exceed 1 to 1.

• The Company must maintain a hedge over financial expenses not lower than 3 .

• The Company must maintain Consolidated Tangible Net Worth (defined as consolidated stockholders' ’ equity less intangible assets) of not less than an amount equal to UF 14,800,000.

• The forbiddance to sell, rent, transfer or ~~any~~ other kind of alienation of ~~its~~the ~~actual~~company’s participation in the property of its ~~subsidiaries properties~~ subsidiries, except in the conditions settled in the agreement.

• The forbiddance to ~~charge~~ giving some guarantees over indispensable assets for the normal course of business, except in the conditions settled in the agreement.

All the aforementioned Covenants and restrictions were fulfilled at the time this financial statements were presented.

~~- The Bank of Nova Scotia~~36

~~The~~– ~~loan entered by the Company with~~ The Bank of Nova Scotia for MMUS$25, with the Scotiabank Sud Americano as Arranger, establishes for the parent and /or their branch subsidiaries some obligations that are normal in this kind of agreement, such as the ones as follows, in the specific terms and conditions as appears in the respective loan agreement:

The loan entered by the Company ~~will~~with ~~not at~~The ~~any~~Bank ~~time~~of ~~permit~~Nova ~~the~~Scotia ~~Leverage~~for ~~Ratio~~MMUS$25, ~~(defined~~in which Scotiabank Sud Americano acted as agent, establishes for the ~~ratio~~parent and /or their branch subsidiaries some obligations that are normal in this kind of ~~consolidated indebtedness~~agreement, such as the ones to ~~Consolidated Tangible~~as ~~Net~~follows, ~~Worth)~~in tothe ~~exceed~~specific 1terms toand 1.conditions as appears in the respective loan agreement:

• The Company ~~must maintain~~will anot ~~hedge~~at ~~over~~any ~~financial~~time ~~expenses~~permit ~~not~~the ~~lower~~Leverage ~~than~~Ratio 3(defined as the ratio of consolidated indebtedness to Consolidated Tangible Net Worth) to exceed 1 to 1.

• The Company must maintain ~~Consolidated Tangible~~ ~~Net~~a ~~Worth (defined~~hedge ~~as consolidated stockholders'~~ over ~~equity~~financial ~~less intangible assets)~~expenses of not ~~less~~lower than ~~an amount equal to UF 14,800,000~~3.

• The ~~forbiddance~~Company ~~to sell,~~must ~~transfer~~maintain orConsolidated ~~any~~Tangible ~~other~~Net ~~kind~~Worth of(defined ~~alienation~~as ofconsolidated ~~its~~stockholders’ ~~actual~~equity ~~participation~~less inintangible ~~its subsidiaries properties, except~~assets) inof ~~the~~not ~~conditions~~less ~~settled~~than inan ~~the~~amount ~~agreement~~equal to UF 14,800,000.

• The forbiddance to ~~charge indispensable assets~~ ~~for~~sell, rent, transfer or other kind of alienation of the ~~normal~~company’s ~~course~~participation in the property of ~~business~~its subsidiries, except in the conditions settled in the agreement.

• The forbiddance to ~~lend~~ ~~loans~~giving tosome itguarantees ~~shareholders~~over ~~for~~indispensable ~~operations~~assets ~~out~~for of the normal course of business, except in the conditions settled in the agreement.


•	The forbiddance to grant loans to its shareholders for operations out of the normal course of the business.

All the aforementioned Covenants and restrictions were fulfilled at the time this financial statements were presented.

~~- Inversiones Coronel~~The ~~Limitada~~loan agreements of Masisa Overseas Ltd. before individualized establishes acceleration debt terms in case of uncompliment of any of this obligations.

~~Dated~~– ~~may~~Inversiones ~~30th~~Coronel 2002, was received from the Servicio de Impuestos Internos (Taxes Government Office) a liquidation of THCH$406,545 due to supposed differences in the determination of the income taxes. The Company have not recognized any provision related to this matter due to, that as it advisors, it considers that the claim presented by the company contains the necessary elements to leave without effect that liquidation.Limitada

~~- Forestal~~Dated may 30th 2002, was received from the Servicio de Impuestos Internos (Taxes Government Office) a liquidation of THCH$406,545 due to supposed differences in the determination of the income taxes. The Company have not made provisions accounts for this ~~Argentina~~ Sconcept due to that, in aggregate the advisers considers that the claim presented by the company contains the necessary elements to leave without effect that liquidation.A.

–	Forestal Argentina S.A.

The loans entered by the Company with The Dredner Bank Lateiamerica A.G. and Security Bank, some obligations that are normal in this kind of agreement, such as the ones as follows:

• The ratio between EBITDA and financial expenses must be higher or equal to 1.8 times.

• Maintenance of a Leverage Ratio, as defined in the respective contracts, lower or equal to 0.5, and,

• Maintenance of a shareholder'’s equity not lower than US$ 50,000,000.

In case of a default in any obligation, any of the banks could demand the immediate payment of the debt, as if were of past due date and currently exigible, all of this, notwithstanding the ~~of the~~ others Banks rights.

~~In consideration~~Dated ~~as of~~august ~~june~~27 30 2002, the ~~shareholders equity~~ ~~was~~Dresdner Bank ~~lower~~L.A. ~~than~~liberated ~~the~~tha ~~minimum described~~Company, ~~above~~until december 31 2002, ~~due~~ toof the ~~economic~~obligation to ~~crisis~~fulfill ~~held~~with inthe ~~Argentina and~~finantial ~~the devaluation happened~~“Covenants” establishes in ~~early~~the loan ~~2002, condition that~~ agreement isfor ~~still outstanding at~~US$6,000,000 that the ~~date~~Company ofmaintains with this ~~financial~~ ~~statements~~institution, in consideration ~~dated~~that ~~august~~this 27were ~~2002,~~under the ~~company~~minimum ~~obtained~~established alimits. ~~waiver~~Dated January ~~from~~28, 2003, the ~~Dresdner~~ Bank ~~Lateiamerica A.G.~~ ~~until~~extended ~~December~~up 31to ~~2002. This waiver was enlarged until~~ April 30, 2003, ~~due~~the ~~that~~liberation ~~the~~od ~~bank~~ fulfillment ~~in accordance~~ with the ~~company, and~~obligation ~~over~~to ~~the~~keep ~~consolidated statements~~a asminimum ofshareholder’s equity, ~~December~~ which, 31at ~~2002~~this time, ~~will~~ ~~check~~has ~~the stipulations content~~not inbeen ~~the respective loans agreements~~renewal. Dated ~~may12~~May 12, 2003, the ~~Dresdner~~ Bank ~~Lateiamerica A.G.~~ informed by a letter to Forestal Argentina S.A., that is ~~actually analyzing~~in ~~the~~process ~~company's audited~~of analisis of the audited balances as of December 31 ~~2002,~~ and ~~that~~until ~~while~~those ~~that~~analisis ~~analysis~~have is not ~~finished,~~ finishes and with the restructuration of the minimum shareholders equity “Covenants”, ~~bank~~ the Bank will not declare ana ~~event of~~ default event for ~~not fulfilling~~unfulfillment ~~the~~of ~~minimum~~those ~~shareholders~~“Covenants”. As ~~equity. Finally~~of June 30, 2003, the ~~bank~~total ~~informed~~capital ~~that~~debt itis ~~expects~~exposed ~~that~~in the ~~analyzing~~non ~~process and~~ordinary ~~modification~~ liability ofin the ~~obligation~~internal ~~will~~statements ~~end~~and onamounts ~~June~~to ~~30 2003~~MCH$4,194,720.

The following table resumes the contingencies and covenants and guarantees assumed by the company

Institution	Debtor		GuarantyType	Compromised Assets		Outstanding amount as of the end of the period		Liberation of guarantees
		Debtor						Compromised Assets				Outstanding amount as of the end of the period			Liberation of guarantees
	Name	Relation		Type	Account value	03/31/2003	03/31/2002	03/31/2004	Assets	03/31/2005	Assets	03/31/2006	Assets
Institution		Name		Relation		Guaranty Type		Type		Account value		06/30/2003		06/30/2002	06/30/2004	Assets	06/30/2005	Assets	06/30/2006	Assets
Raboinvestments Chile S.A.	~~Forestal Tornagaleones S.A.~~	~~Subsidiary~~Forestal Tornagaleones S.A.	~~Suretyship~~	~~Net Worth~~Subsidiary	~~11,155,715~~	~~11,155,715~~Suretyship	~~10,404,129~~	~~913,875~~Net Worth	0	~~731~~10,~~560~~200,218	0	210,~~194~~200,~~680~~218	0	10,764,589	762,098	0	1,398,240	0	2,621,700	0
Security Bank	~~Forestal Argentina S.A.~~	~~Subsidiary~~Forestal ofArgentina ~~Subsidiary~~S.A.	~~Suretyship~~	~~Net~~Subsidiary ~~Worth~~of Subsidiary	~~2,054,171~~	~~2,054,171~~Suretyship	~~1,919,082~~	~~347,198~~Net Worth	0	~~682~~1,~~789~~977,749	0	~~682~~1,~~789~~977,749	0	2,015,222	346,469	0	652,512	0	652,512	0
Dresner Bank Lanteiamerica	Forestal Argentina S.A.	Subsidiary of Subsidiary	Suretyship	Net Worth	4,429,392	4,429,392	4,128,817	40,032	0	1,463,120	0	1,463,120	0
Dresdner Bank Lanteiamerica		Forestal Argentina S.A.		Subsidiary of Subsidiary		Suretyship		Net Worth		4,271,234		4,271,234		4,364,570	76,514	0	1,398,240	0	1,398,240	0
Banco de Chile New York Branch	~~Masisa Overseas Ltd.~~	~~Subsidiary~~Masisa Overseas Ltd.	~~Suretyship~~	~~Net Worth~~Subsidiary	~~11,136,874~~	~~11,136,874~~Suretyship	~~7,657,430~~	~~163,473~~Net Worth	0	111,~~572~~942,~~854~~442	0	311,~~145~~942,~~708~~442	0	8,562,336	1,455,642	0	3,006,216	0	3,006,216	0
Comerica Bank	~~Masisa Overseas Ltd.~~	~~Subsidiary~~Masisa Overseas Ltd.	~~Suretyship~~	~~Net Worth~~Subsidiary	~~11,127,037~~	~~11,127,037~~Suretyship	0	~~153,637~~Net Worth	0	310,~~135~~541,~~466~~536	0	310,~~135~~541,~~466~~536	0	10,757,320	1,552,951	0	2,996,428	0	2,996,428	0
Citibank N.A.	~~Masisa Overseas Ltd.~~	~~Subsidiary~~Masisa Overseas Ltd.	~~Suretyship~~	~~Net Worth~~Subsidiary	~~43,122,360~~	~~43,122,360~~Suretyship	~~40,140,411~~	~~6,753,378~~Net Worth	0	1240,~~122~~819,~~994~~065	0	1240,~~122~~819,~~994~~065	0	41,611,334	11,855,522	0	11,585,417	0	11,585,417	0
The Bank of Nova Scotia	~~Masisa Overseas Ltd.~~	~~Subsidiary~~Masisa Overseas Ltd.	~~Suretyship~~	~~Net Worth~~Subsidiary	~~18,382,527~~	~~18,382,527~~Suretyship	0	~~93,527~~Net Worth	0	017,679,443	0	517,~~486~~679,~~700~~443	0	0	201,443	0	5,243,400	0	5,243,400	0
Private Placement	~~Masisa Overseas Ltd.~~	~~Subsidiary~~Masisa Overseas Ltd.	~~Suretyship~~	~~Net Worth~~Subsidiary	~~52,763,224~~	~~52,763,224~~Suretyship	~~49,093,386~~	~~19,843,024~~Net Worth	0	631,~~584~~791,~~040~~451	0	631,~~584~~791,~~040~~451	0	50,357,154	6,623,131	0	6,292,080	0	6,292,080	0
BankBoston N.A.	~~Masisa do Brasil Ltda.~~	~~Subsidiary~~Masisa ofdo ~~Subsidiary~~Brasil Ltda.	~~Suretyship~~	~~Net Worth~~Subsidiary	0	0Suretyship	~~2,501,033~~	0Net Worth	0	0	0	0	0	79,472,928	0	0	0	0	0	0
BankBoston Banco Multiplo S/A.	~~Masisa do Brasil Ltda.~~	~~Subsidiary~~Masisa ofdo ~~Subsidiary~~Brasil Ltda.	~~Suretyship~~	~~Net~~Subsidiary ~~Worth~~of Subsidiary	~~88,257,588~~	~~88,257,588~~Suretyship	~~73,885,233~~	~~3,013,862~~Net Worth	0	4979,~~380~~061,~~300~~076	0	3079,~~010~~061,~~946~~076	0	5,697,054	2,141,643	0	61,033,176	0	15,886,257	0
ABN Amro Bank	~~Masisa do Brasil Ltda.~~	~~Subsidiary~~Masisa ofdo ~~Subsidiary~~Brasil Ltda.	~~Suretyship~~	~~Net~~Subsidiary ~~Worth~~of Subsidiary	~~61,089~~	~~61,089~~Suretyship	~~893,663~~	~~61,089~~Net Worth	0	01,447,168	0	01,447,168	0	118,293	1,447,168	0	0	0	0	0
Rabobank Ireland PLC	Masisa Argentina S.A.	Subsidiary of Subsidiary	Suretyship	Net Worth	22,562,107	22,562,107	20,340,897	1,712,647	0	20,849,460	0	0	0
Banco Alfa S.A.		Masisa do Brasil Ltda.		Subsidiary of Subsidiary		Suretyship		Net Worth		382,180		382,180		0	382,180	0	0	0	0	0
BankBoston	Masisa Argentina S.A.	Subsidiary of Subsidiary	Suretyship	Net Worth	5,537,301	5,537,301	5,421,140	5,537,301	0	0	0	0	0
Rabobank Ireland PLC		Masisa Argentina S.A.		Subsidiary of Subsidiary		Suretyship		Net Worth		21,966,034		21,966,034		21,742,855	21,966,034	0	0	0	0	0
Banco de Boston	Masisa Argentina S.A.	Subsidiary of Subsidiary	Suretyship	Net Worth	81,787	81,787	0	76,086	0	5,701	0	0	0
BankBoston		Masisa Argentina S.A.		Subsidiary of Subsidiary		Suretyship		Net Worth		5,347,016		5,347,016		5,465,034	5,347,016	0	0	0	0	0
Banco de la Nacion Argentina	Masisa Argentina S.A.	Subsidiary of Subsidiary	Suretyship	Net Worth	0	0	199,353	0	0	0	0	0	0
Banco de Boston		Masisa Argentina S.A.		Subsidiary of Subsidiary		Suretyship		Net Worth		46,085		46,085		43,517	0	0	46,085	0	0	0
Banco de la Nación Argentina		Masisa Argentina S.A.		Subsidiary of Subsidiary		Suretyship		Net Worth		0		0		123,465	0	0	0	0	0	0
Rabobank Curacao N.V.		Forestal Tornagaleones S.A.		Subsidiary of Subsidiary		Suretyship		Net Worth		1,833		1,833		0	1,833	0	0	0	0	0

~~NOTE 23 -LIENS OBTAINED FROM THIRD PARTIES~~ 38

~~Masisa~~NOTE ~~S.A.~~23 ~~The~~- ~~Company~~LIENS ~~has~~OBTAINED ~~received~~FROM ~~guarantees, such~~THIRD as pledges, mortgages, endorsements of loan insurance policies, special mandates, surety bonds to guarantee repayment to clients and fulfillment of obligations related to the Company’s business activities amounting to ThCh$3,939,990 (ThCh$4,298,893 in 2002) PARTIES

Masisa S.A.

The Company has received guarantees, such as pledges, mortgages, endorsements of loan insurance policies, special mandates, surety bonds to guarantee repayment to clients and fulfillment of obligations related to the Company’s business activities amounting to ThCh$4,003,638 (ThCh$4,141,515 in 2002).

Forestal Tornagaleones S.A.

Tornagaleones has received guarantees to secure repayment to clients and fulfillment of obligations related to the Company’s business activities amounting to ThCh$~~192~~200,~~242~~261 at ~~march~~June ~~31th~~ 30th 2003. (~~ThCh185~~ThCh183,~~393~~983 in 2002) .

NOTE 24 - NATIONAL AND FOREIGN CURRENCY


a)	Assets

The breakdown of all foreign currency accounts is as follows:

		~~Amount~~		Amount
Account	~~Currency~~	~~03/31/2003~~Currency	~~03/31/2002~~	0330/2003			06/30/2002
Cash	~~ThCh$ not adjustable~~	~~558,425~~ThCh$ not adjustable	~~454,059~~		6,869,181			697,104
Cash	~~US$~~	~~823,417~~US$	~~1,266,349~~		957,415			1,057,720
Cash	~~ThAr$~~	~~114,085~~ThAr$	~~432,527~~		690,619			294,531
Cash	Re	~~190,133~~Re	~~445,524~~		592,252			147,940
Cash	~~Mexican pesos~~	~~870,801~~Mexican pesos	~~367,898~~		109,438			0
Cash	~~Sol~~	~~985~~Sol	0		700			0
Time deposit	~~US$~~	~~6,338,967~~US$	~~1,838,461~~		3,281,284			433,256
Time deposit	Re	~~569,121~~Re	~~599,333~~		0			284,115
Marketable securities	U.F.	1,360,000	571,200
Account receivable		ThCh$ not adjustable			10,770,310			11,357,895
Marketable securities	ThAr$	183,059	0
Account receivable		US$			9,848,021			5,920,597
Account receivable	~~ThCh$ not adjustable~~	~~11,278,280~~ThAr$	~~11,496,015~~		1,016,848			1,906,387
Account receivable	~~US$~~	~~9,193,372~~Sol	~~5,681,790~~		11,822			1,893
Account receivable	~~ThAr$~~	~~732,813~~Re	~~1,294,105~~		7,704,245			6,685,286
Account receivable	~~Sol~~	0Mexican pesos	77		5,572,664			1,904,175
Account receivable	Re	7,045,399	6,723,725
Notes receivable		ThCh$ not adjustable			1,420,475			2,613,484
Account receivable	Mexican pesos	5,579,823	1,302,718
Notes receivable		US$			2,487,977			0
Notes receivable	~~ThCh$ not adjustable~~	~~1,804,389~~ThAr$	~~2,676,645~~		766,030			422,107
Notes receivable	~~US$~~	~~2,506,113~~Sol	~~19,163~~		0			2,302,661
Notes receivable	ThAr$	869,684	1,462,820
Sundry debtors		ThCh$ not adjustable			1,104,505			957,152
Notes receivable	Sol	0	2,037,970
Sundry debtors		US$			697,523			229,254
Notes receivable	Re	2,654	0
Sundry debtors		ThAr$			459,583			632,707
Sundry debtors	~~ThCh$ not adjustable~~	~~803,297~~Sol	~~1,051,932~~		125,498			5,465
Sundry debtors	~~US$~~	~~1,412,152~~Re	~~157,853~~		703,024			2,026,971
Sundry debtors	~~ThAr$~~	~~646,903~~Mexican pesos	~~336,847~~		60,499			53,661
Sundry debtors	Sol	0	6,211
Notes and accounts receivable from related companies		ThCh$ not adjustable			0			373,363
Sundry debtors	Re	780,039	1,732,555
Notes and accounts receivable from related companies		US$			2,669,087			4,944,362
Sundry debtors	Mexican pesos	54,508	19,274
Inventories		Adjustable ThCh$			19,682,378			19,731,865
Sundry debtors	Swedish crone	18,392	0
Inventories		US$			31,197,465			17,210,360
Notes and accounts receivable from related companies	ThCh$ not adjustable	0	1,168,307
Inventories		ThAr$			769,190			502,998
Notes and accounts receivable from related companies	US$	1,541,754	4,317,700
Recoverable taxes		Adjustable ThCh$			1,931,808			385,208
Inventories	Adjustable ThCh$	19,306,492	18,934,831
Recoverable taxes		US$			457,868			0
Inventories	US$	28,982,627	13,646,185
Recoverable taxes		ThAr$			3,608,478			2,087,525
Inventories	ThAr$	783,899	478,608
Recoverable taxes		Sol			93,072			189,033
Inventories	Mexican pesos	0	1,912,411
Recoverable taxes		Re			656,605			317,552
Recoverable taxes	~~Adjustable ThCh$~~	~~2,079,861~~Mexican pesos	~~284,526~~		1,415,057			1,739,688
Recoverable taxes	ThAr$	3,957,007	1,749,787
Prepaid expenses		ThCh$ not adjustable			1,036,820			520,217
Recoverable taxes	Sol	117,891	190,397
Prepaid expenses		US$			223,247			268,772
Recoverable taxes	Re	966,815	322,295
Prepaid expenses		Re			421,019			314,316
Recoverable taxes	Mexican pesos	2,893,407	1,657,694
Prepaid expenses		ThAr$			177,693			271,652
Recoverable taxes	Sucre	33,930	0
Prepaid expenses		Sol			4,160			1,415
Prepaid expenses	~~ThCh$ not adjustable~~	~~1,211,663~~Mexican pesos	~~483,862~~		67,517			24,511
Prepaid expenses	US$	530,153	289,693
Deferred taxes		ThCh$ not adjustable			948,103			429,835
Prepaid expenses	ThAr$	123,398	219,530
Others currents assets		US$			21,958,341			1,245,991
Prepaid expenses	Re	543,733	455,561
Others currents assets		U.F.			0			455,467
Deferred taxes	ThCh$ not adjustable	331,022	(265,188)
Fixed assets		Adjustable ThCh$			146,994,478			144,070,555
Deferred taxes	ThAr$	0	609,203
Fixed assets		US$			295,077,498			293,440,575
Others currents assets	US$	4,417,441	3,055,997
Investments in related companies		Adjustable ThCh$			202			0
Fixed assets	Adjustable ThCh$	146,566,955	143,601,887
Investments in related companies		US$			0			127,678
Fixed assets	US$	309,069,635	275,308,830
Investments in other companies		Adjustable ThCh$			6,053			6,052
Investments in related companies	Adjustable ThCh$	202	0
Goodwill		Adjustable ThCh$			890,531			1,115,762
Investments in related companies	US$	0	0
Higher investment value		Adjustable ThCh$			(1,382,764	)		(602,405	)
Investments in other companies	Adjustable ThCh$	137,601	156,191
Long term receivables		US$			209,734			295,854
Goodwill	Adjustable ThCh$	941,586	1,163,476
Long term receivables		ThCh$ not adjustable			411,772			336,021
Higher investment value	Adjustable ThCh$	(1,392,644)	0
Long term receivables		ThAr$			0			181,781
Long term receivables	~~US$~~	~~432,065~~Re	~~650,253~~		362,250			372,572
Long term receivables	ThCh$ not adjustable	61,031	0
Long term receivables	ThAr$	206,211	220,133
Long term receivables	Re	324,673	436,028
Notes and accounts receivables from related companies	US$	2,174,352	2,247,624
Others	ThCh$ not adjustable	312,907	760,659
Others	ThAr$	2,419,979	919,251
Others	US$	106,093,186	93,288,722
Others	Mexican pesos	385,277	755
Total Assets
	ThCh$ not adjustable	16,361,014	17,826,291
	US$	473,515,234	401,768,620
	ThAr$	10,037,038	7,722,811
	Re	10,422,567	10,715,021
	Mexican pesos	9,783,816	5,260,750
	Sol	118,876	2,234,655
	U.F.	1,360,000	571,200
	Swedish Crone	18,392	0
	Adjustable ThCh$	167,640,053	164,140,911
	Sucre	33,930	0

		Amount
Account	Currency	0330/2003		06/30/2002

Notes and accounts receivables from related companies	US$		2,174,373		2,368,540
Others	ThCh$ not adjustable		313,438		873,345
Others	ThAr$		2,425,609		659,636
Others	US$		0		20,295,755
Others	Mexican pesos		419,177		0
Total Assets
	ThCh$ not adjustable		22,874,604		18,158,416
	US$		371,239,833		347,838,714
	ThAr$		9,914,050		6,959,324
	Re		10,439,395		10,148,752
	Mexican pesos		7,644,352		3,722,035
	Sol		235.252		2.500.467
	U.F.		0		455,467
	Adjustable ThCh$		168,122,686		164,707,037


b)	Currents Liabilities

The breakdown of all foreign currency accounts is as follows:

		~~Until 90 days~~		Until 90 days		~~90 days to 1 year~~						90 days to 1 year
		03/31/2003		03/31/2002		03/31/2003		03/31/2002
				06/30/2003				06/30/2002				06/30/2003			06/30/2002
Account	~~Currency~~	~~Amount~~Currency	~~Annual Rate~~	Amount	~~Annual~~	~~Amount~~Annual Rate	~~Annual Rate~~	Amount	~~Annual Rate~~	Annual Rate		Amount	Annual Rate		Amount	Annual Rate
Due to banks and financial institutions short/term	~~U.F.~~	~~26,662~~U.F.	0	04,714,160	0	06.36	0%	0	0	0		0	0		0	0
Due to banks and financial institutions short/term	~~US$~~	~~809,040~~US$	~~2.85%~~	146,~~162~~330,~~793~~205	~~3.67%~~	~~17,661,896~~2.22	~~2.62~~%	1618,~~386~~040,~~709~~280	~~3.23%~~	2.92	%	31,740,344	2.4	%	12,484,065	2.47	%
Due to banks and financial institutions short/term	~~ThAr$~~	0ThAr$	0	~~74,758~~0	~~5.76%~~	0	0	~~124~~61,~~595~~733	~~5.76%~~	42.75	%	0	0		61,733	42.75	%
Due to banks and financial institutions short/term	Re	~~61,089~~Re	0	~~893~~1,~~663~~829,348	~~20.35%~~	0	0	0118,293	0	18.96	%	0	0		0	0
Short/term portion of long/term liabilities to banks and financial institutions	~~U.F.~~	0U.F.	0	0837,565	0	~~1,459,256~~6.7	~~6.70~~%	1868,~~470,096~~743	~~6.70%~~	6.7	%	722,687	6.70	%	721,322	6.70	%
Short/term portion of long/term liabilities to banks and financial institutions	~~US$~~	~~6,274,234~~US$	~~3.28%~~	3372,~~405,087~~374	0	~~6,917,394~~3.26	~~2.89~~%	~~986~~1,~~665~~494,572	0	8.00	%	36,661,013	5.86	%	748,214	8.00	%
Short/term portion of long/term liabilities to banks and financial institutions	~~ThAr$~~	~~17,102~~ThAr$	0	017,282	0	~~58,985~~0	0	013,055	0	0		46,085	0		45,027	0
Short term portion of long term Bond	~~US$~~	~~19,843,024~~US$	~~7.82%~~	~~1,435,692~~0	0	0	0	0	0	0		6,623,131	8.06	%	18,311,225	7.82	%
Long/term liabilities due within one year	~~US$~~	~~52,264~~US$	~~10.52%~~	~~435~~49,~~257~~893	~~12.67%~~	~~177,127~~10.50	~~10.59~~%	1988,~~236,586~~801	~~11.10%~~	11.18	%	176,516	10.50	%	285,089	10.78	%
Dividends payable	~~ThCh$ not adjustable~~	~~115,047~~ThCh$ not adjustable	0	~~101~~97,~~947~~943	0	0	0	0191,493	0	0		0	0		0	0
Accounts payable	~~ThCh$ not adjustable~~	~~7,226,072~~ThCh$ not adjustable	0	54,~~353~~628,~~274~~736	0	0	0	03,592,091	0	0		452,051	0		0	0
Accounts payable	~~US$~~	~~2,178,560~~US$	0	995,~~147~~041,186	0	0	0	01,701,389	0	0		0	0		0	0
Accounts payable	~~ThAr$~~	~~2,497,028~~ThAr$	0	2,~~285~~037,~~432~~700	0	0	0	0727,133	0	0		136,454	0		0	0
Accounts payable	Re	~~1,962,983~~Re	0	1,~~112~~917,~~433~~628	0	0	0	01,960,754	0	0		0	0		0	0
Accounts payable	~~Euro~~	~~153,292~~Euro	0	~~194~~986,~~614~~378	0	0	0	01,341,018	0	0		0	0		0	0
Accounts payable	~~Swedish Crone~~	0Swedish Crone	0	5824,~~090~~577	0	0	0	0133,099	0	0		0	0		0	0
Accounts payable	~~Mexican pesos~~	~~2,263,319~~Mexican pesos	0	~~479~~1,~~171~~114,255	0	0	0	0845,127	0	0		0	0		0	0
Sundry debtors	US$	707,638	0	429,796	0	0	0	0	0
Accounts payable		GBP		181		0		0		0		0	0		0	0
Sundry debtors	Sol	0	0	4,692	0	0	0	0	0
Accounts payable		CHF		2,751		0		0		0		0	0		0	0
Notes and accounts payable to related companies	ThCh$ not adjustable	548,890	0	3,708	0	0	0	0	0
Accounts payable		Sol		0		0		21,800		0		0	0		0	0
Notes and accounts payable to related companies	US$	917,383	0	0	0	0	0	0	0
Sundry debtors		ThCh$ not adjustable		0		0		0		0		4,961	0		0	0
Provisions	ThCh$ not adjustable	421,476	0	1,268,640	0	170,985	0	0	0
Sundry debtors		US$		684,394		0		438,166		0		0	0		0	0
Provisions	US$	0	0	0	0	854,633	0	835,806	0
Sundry debtors		Sol		18,609		0		7,978		0		0	0		0	0
Provisions	ThAr$	52,080	0	1,319	0	202,271	0	376,110	0
Notes and accounts payable to related companies		ThCh$ not adjustable		486,565		0		60,135		0		0	0		0	0
Provisions	Re	610,393	0	455,497	0	0	0	0	0
Notes and accounts payable to related companies		US$		2,142,337		0		0		0		0	0		0	0
Provisions	~~Sol~~	~~13,985~~ThCh$ not adjustable	0	3542,~~327~~671	0	0	0	0105,506	0	0		951,882	0		275,585	0
Provisions	~~Mexican pesos~~	~~406,996~~US$	0	~~285,115~~0	0	0	0	0	0	0		0	0		704,093	0
Withholdings	ThCh$ not adjustable	268,102	0	282,199	0	0	0	0	0
Provisions		ThAr$		0		0		959		0		0	0		695,926	0
Withholdings	US$	1,027	0	0	0	0	0	0	0
Provisions		Re		726,941		0		413,797		0		0	0		0	0
Withholdings	ThAr$	790,066	0	219,207	0	0	0	0	0
Provisions		Sol		74,885		0		6,423		0		226,883	0		0	0
Withholdings	Re	357,041	0	0	0	0	0	0	0
Provisions		Mexican pesos		363,324		0		102,390		0		0	0		0	0
Withholdings	~~Sol~~	~~2,197~~ThCh$ not adjustable	0	0451,680	0	0	0	0228,956	0	0		0	0		0	0
Withholdings	~~Mexican pesos~~	~~65,910~~US$	0	783,~~928~~187	0	0	0	0	0	0		0	0		0	0
Income tax	ThCh$ not adjustable	2,426,124	0	364,082	0	0	0	138,542	0
Withholdings		ThAr$		718,978		0		233,190		0		0	0		0	0
Income tax	US$	695,762	0	0	0	176,729	0	0	0
Withholdings		Re		394,674		0		0		0		0	0		0	0
Income tax	Re	0	0	403,887	0	0	0	0	0
Withholdings		Sol		2,292		0		2,915		0		0	0		0	0
Income tax	Mexican pesos	8,692	0	0	0	0	0	0	0
Withholdings		Mexican pesos		41,646		0		134,285		0		0	0		0	0
Unearned taxes	ThCh$ not adjustable	1,677	0	147,307	0	29,312	0	0	0
Income tax		ThCh$ not adjustable		0		0		0		0		0	0		903,546	0
Others currents payables	ThCh$ not adjustable	0	0	4,533	0	0	0	0	0
Income tax		Re		0		0		0		0		0	0		363,007	0
Others currents payables	US$	0	0	0	0	0	0	1,238,946	0
Income tax		Mexican pesos		0		0		0		0		0	0		31,104	0
Others currents payables	ThAr$	0	0	0	0	4,562	0	0	0
Unearned income		ThCh$ not adjustable		31,680		0		91,315		0		0	0		0	0
Others currents payables	Re	~~799,725~~ThCh$ not adjustable	0	07,715	0	0	0	0	0	0		0	0		0	0
Others currents payables	~~Mexican pesos~~	~~205,275~~US$	0	0577,006	0	0	0	0729,848	0	0		0	0		0	0
Total current liabilities
Others currents payables		ThAr$		0		0		0		0		0	0		3,936	0
	U.F.	26,662	0	0	0	1,459,256	0	1,470,096	0
Others currents payables		Re		7,282		0		0		0		0	0		0	0
	US$	31,478,932	0	19,967,772	0	25,787,779	0	20,684,712	0
	ThAr$	3,356,276	0	2,580,716	0	265,818	0	500,705	0
	Re	3,791,231	0	2,865,480	0	0	0	0	0
	ThCh$ not adjustable	11,007,388	0	7,525,690	0	200,297	0	138,542	0
	Euro	153,292	0	194,614	0	0	0	0	0
	Swedish Crone	0	0	58,090	0	0	0	0	0
	Mexican pesos	2,950,192	0	843,214	0	0	0	0	0
	Sol	16,182	0	8,019	0	0	0	0	0

		Until 90 days				90 days to 1 year

		06/30/2003		06/30/2002		06/30/2003		06/30/2002
Account	Currency	Amount	Annual Rate	Amount	Annual Rate	Amount	Annual Rate	Amount	Annual Rate

Total current liabilities
	U.F.	5,551,725	0	868,743	0	722,687	0	721,322	0
	US$	15,200,582	0	23,393,056	0	75,201,004	0	32,532,686	0
	ThAr$	2,773,960	0	1,036,070	0	182,539	0	806,622	0
	Re	4,875,873	0	2,492,844	0	0	0	363,007	0
	ThCh$ not adjustable	6,246,990	0	4,269,496	0	1,408,894	0	1,179,131	0
	Euro	986,378	0	1,341,018	0	0	0	0	0
	Swedish Crone	24,577	0	133,099	0	0	0	0	0
	GBP	181	0	0	0	0	0	0	0
	CHF	2,751	0	0	0	0	0	0	0
	Mexican pesos	1,519,225	0	1,081,802	0	0	0	31,104	0
	Sol	95,786	0	39,116	0	226,883	0	0	0


c)	Long-Term Liabilities

Present period

The breakdown of all foreign currency accounts is as follows:

		~~1 to 3 year~~	1 to 3 year	~~3 to 5 year~~		~~5 to 10 year~~		~~More~~3 ofto 105 year				5 to 10 year		More of 10 year
Account	Currency	~~Amount~~	~~Rate~~Amount	~~Amount~~	Rate	~~Amount~~	~~Rate~~	Amount	~~Rate~~	Rate		Amount	Rate	Amount	Rate
Due to banks and financial institutions	~~U.F.~~	~~2,860,738~~U.F.	~~6.70%~~	~~715~~2,~~184~~890,748	~~6.70%~~	06.70	0%	0722,688	0	6.70	%	0	0	0	0
Due to banks and financial institutions	~~US$~~	~~148,186,648~~US$	~~8.12%~~	5053,~~855~~784,~~195~~366	~~3.94%~~	02.6	0%	027,396,682	0	2.7	%	0	0	0	0
Due to banks and financial institutions	~~ThAr$~~	0ThAr$	0	046,085	0	0	0	0	0	0		0	0	0	0
Bonds	~~US$~~	~~13,168,080~~US$	~~8.06%~~	1312,~~168~~584,~~080~~160	~~8.06%~~	~~6,584,040~~8.06	~~8.06~~%	012,584,160	0	8.06	%	0	0	0	0
Sundry creditors	~~ThCh$ not adjustable~~	0ThCh$ not adjustable	0	013,547	0	0	0	~~918,175~~0	0	0		923,657	0	1,012,901	0
Sundry creditors	~~US$~~	~~253,943~~US$	~~10.50%~~	0192,426	0	010.50	0%	0	0	0		0	0	0	0
Sundry creditors	ThAr$	0	0	0	0	0	0	1,059,901	0
Others Long term liabilities		Re		1,765,292		0		2,446,810		0		0	0	0	0
Deferred taxes adjustable	ThCh$ not	0	0	0	0	0	0	4,808,799	0
Provisions		US$		0		0		0		0		0	0	33,922	0
Deferred taxes	~~ThAr$~~	~~259,476~~ThCh$ not adjustable	0	~~259,476~~0	0	~~98,499~~0	0	0	0	0		0	0	5,691,748	0
Others Long term liabilities	Re	0	0	3,326,343	0	0	0	0	0
Total long-term liabilities
Provisions	US$	0	0	0	0	0	0	21,420	0
		U.F.		2,890,748		0		722,688		0		0	0	0	0
Total long-term liabilities
		US$		66,560,952		0		39,980,842		0		0	0	33,922	0
	U.F.	2,860,738	0	715,184	0	0	0	0	0
		ThAr$		46,085		0		0		0		0	0	0	0
	US$	161,608,671	0	64,023,275	0	6,584,040	0	21,420	0
		ThCh$ not adjustable		13,547		0		0		0		923,657	0	6,704,649	0
	ThAr$	259,476	0	259,476	0	98,499	0	1,059,901	0
		Re		1,765,292		0		2,446,810		0		0	0	0	0
	ThCh$ not adjustable	0	0	0	0	0	0	5,726,974	0
	Re	0	0	3,326,343	0	0	0	0	0

Past period

The breakdown of all foreign currency accounts is as follows:

		~~1 to 3 year~~	1 to 3 year	~~3 to 5 year~~		~~5 to 10 year~~		~~More~~3 ofto 105 year				5 to 10 year			More of 10 year
Account	Currency	~~Amount~~	~~Rate~~Amount	~~Amount~~	Rate	~~Amount~~	~~Rate~~	Amount	~~Rate~~	Rate		Amount	Rate		Amount	Rate
Due to banks and financial institutions	~~U.F.~~	~~2,865,778~~U.F.	~~6.70%~~	2,~~149~~885,~~334~~288	0	06.70	0%	02,163,966	0	6.7	%	0	0		0	0
Due to banks and financial institutions	~~US$~~	~~38,443,085~~US$	~~5.85%~~	~~104~~53,~~279~~389,839	~~9.08%~~	~~4,425,357~~5.27	~~6.30~~%	033,881,907	0	3.72	%	1,958,362	3.68	%	0	0
Bonds	US$	23,148,023	7.88%	12,254,836	8,06%	12,254,835	8.06%	0	0
Due to banks and financial institutions		ThAr$		43,518
Sundry creditors	ThCh$ adjustable	21,523	0	0	0	890,996	0	0	0
Bonds		US$		12,818,372		8.06	%	12,818,372		8,06	%	6,409,185	8.06	%	0	0
Sundry creditors	~~US$~~	~~455,120~~ThCh$ adjustable	~~10.59%~~	07,343	0	0	0	0	0	0		946,215	0		0	0
Sundry creditors	~~ThAr$~~	0US$	0	0424,844	0	~~981,717~~10.53	0%	0	0	0		0	0		0	0
Sundry creditors	Re	0ThAr$	0	~~1,738,955~~0	0	0	0	0	0	0		1,026,861	0		0	0
Deferred taxes	~~ThCh$ not adjustable~~	0ThCh$ not adjustable	0	0	0	0	0	~~3,350,876~~0	0	0		0	0		3,578,609	0
Deferred taxes	~~ThAr$~~	0ThAr$	0	0	0	0	0	~~1,282,522~~0	0	0		0	0		1,077,883	0
Deferred taxes	Mexican pesos	0	0	0	0	0	0	56,415	0
Others Long term liabilities		Re		0		0		1,910,072		0		0	0		0	0
Total long-term liabilities
	~~U.F.~~	~~2,865,778~~U.F.	0	2,~~149~~885,~~334~~288	0	0	0	02,163,966	0	0		0	0		0	0
	~~US$~~	~~62,046,228~~US$	0	~~116~~66,~~534~~633,~~007~~055	0	~~16,680,192~~0	0	046,700,279	0	0		8,367,547	0		0	0
	~~ThCh$ adjustable~~	~~21,523~~ThCh$ adjustable	0	07,343	0	~~890,996~~0	0	0	0	0		946,215	0		0	0
	~~ThAr$~~	0ThAr$	0	043,518	0	~~981,717~~0	0	~~1,282,522~~0	0	0		1,026,861	0		1,077,883	0
	Re	0Re	0	~~1,738,955~~0	0	0	0	01,910,072	0	0		0	0		0	0
	~~ThCh$ not adjustable ThAr$~~	0ThCh$ not adjustable ThAr$	0	0	0	0	0	~~3,350,876~~0	0	0		0	0		3,578,609	0
	Mexican pesos	0	0	0	0	0	0	56,415	0

~~NOTE 25 - SANCTIONS~~ 44

NOTE 25 - Sanctions

During the period covered by this financial statements, the Superintendencia de Valores y Seguros no has not applied any type of sanction to the Company, nor to its Directors or the Chief Executive Officer of the Company.

NOTE 26 - SUBSEQUENT EVENTS

25Between deJune ~~Abril~~30, 2003.- Seand ~~comunica~~the aemission ~~la Superintendencia~~date deof ~~Valores~~this yfinancial ~~Seguros~~statements y(August ~~Bolsas de Comercio del país~~14, ~~que en Junta General Ordinaria de Accionistas de la sociedad~~2003), ~~realizada~~no elsignificant 24event dethat ~~abril~~affects dethe ~~2003,~~financial ~~se adoptaron,~~situation ~~entre~~of ~~otros,~~the ~~los~~company ~~siguientes~~have ~~acuerdos:~~taken place.

To designate Mr. Julio Moura, Mr. Gonzalo Zegers Ruiz-Tagle, Mr. Jaime Fernández Hernández, Mr. Patrick Nielson, Mr. Jorge Carey Tagle, Mr. Miguel Ignacio Guerrero Gutiérrez, and Mr. Isidoro Palma Penco as the member of the Company’s Board of Directors. 45

To distribute a definitive dividend of Ch$3,3749662303 per common share, representing approximately US$ 0.1428 per ADS (translated to U.S. dollars only for illustrative purposes at the observed exchange rate of April 24 2003, which is US$1=Ch$708.85), payable on May 23, 2003 to Masisa’s shareholders, as of record date May 16.

To designate PricewaterhouseCoopers as external auditors for the 2003 period.

Between March 31, 2003 and the emission date of this financial statements (May 14, 2003), no significant event that affects the financial situation of the company have taken place.

NOTE 27 - ENVIRONMENTAL

ENVIRONMENTAL CONSOLIDATED NOTE AS OF JUNE 30 2003

The company focuses its environmental policies through 2 perspectives,

1) Legal Aspects ~~Concentrate all subjects related to authorization requests and certifications related to environmental matters.~~

~~2) Clean~~Concentrate ~~production~~all ~~profitability~~subjects ~~Under~~related ~~the concept that each process may be improved through an adequate environmental management, the company is constantly evaluating projects~~ to ~~reduce~~authorization ~~cost~~requests and ~~wastes~~certifications ~~in its production processes. The company has committed the following investments in its operating processes~~ related to ~~the~~ environmental ~~subject, Current Projects as of March,31, 2003~~ matters.

2) ~~Masisa~~Environmental ~~Chile~~management and Clean production

~~Certification~~Under ~~SCS implementation (Scientific Certification System)~~the ~~MDF~~concept ~~facilities, Argentina~~that each process may be improved through an responsible y adequate environmental management, ~~Brasil~~the company is constantly evaluating and developing projects to reduce cost and wastes in its production processes to accomplish the efficient manage of the resources, and ~~Chile.~~finally, ~~Budget~~the ~~THCH$28.744~~implementation ~~Invested~~of ~~THCH$0~~the Environmental Management System Certification under international standards.

—The ~~Cabrero~~company ~~facility~~has committed the following investments in its operating processes related to the environmental subject, Current Projects as of June 30, 2003:

~~Paving~~• ~~stones~~Masisa installation in chips central. Budget THCH$21.135 Invested THCH$19.999 Mud press sheet waste wash clean . Budget THCH$18.685 Invested THCH$15.906 Riles pond agitator, Cabrero facility. Budget THCH$12.278 Invested THCH$10.453 Chip’s water wash clean. Budget THCH$34.581 Invested THCH$17.002 Chile

—Certification ~~Puschmann~~SCS ~~facility~~implementation (Scientific Certification System) MDF facilities, Argentina , Brasil and Chile. Budget THCH$40,000 Invested THCH$631.

~~Rain~~Inplementation ~~waters~~and ~~evacuation.~~Certification ~~ISO~~by ~~14001 Norm~~the ~~Budget THCH$6.629 Invested THCH$0 Formaldehyde evacuation.~~ ISO ~~14001~~14,001 ~~Norm.~~International ~~Budget THCH$5.769 Invested THCH$0 Containers construction. ISO 14001~~ Norm ~~Budget~~of ~~THCH$4.251 Invested~~the ~~THCH$0 Contractor’s~~Environmenal ~~casino~~Management ~~enablement~~Systems ~~and~~of ~~sewage~~all ~~improvement~~the .inductrial ~~ISO~~facilities ~~14001 Norm~~during ~~Budget THCH$1.073 Invested THCH$0~~ 2003:

–	Mapal facility

Implementation and Certification of the SGA ISO 14,001. Budget US$72,580 Invested US$13,957.

–	Ranco facility

Implementation and Certification of the SGA ISO 14,001. Budget US$73,368 Invested US$10,121.

–	Chiguayante facility

Implementation and Certification of the SGA ISO 14,001. Budget US$51,978 Invested US$8,023.

–	Cabrero facility

Paving stones installation in chips central. Budget US$29,412 Invested US$30,037.

Mud press sheet clean. Budget US$26,002 Invested US$23,205.

Riles pond agitator, Cabrero facility. Budget US$17,087 Invested US$14,426.

Chip’s water wash clean. Budget US$48,122 Invested US$44,997.

Implementation and Certification of the SGA ISO 14,001 (2º Stage). Budget US$24,066 Invested US$43.

-	Puschmann facility

Rain waters evacuation. ISO 14001 Norm Budget US$9,225 Invested US$9,414.

Improvements in formaldehyde gases evacuation. Budget US$8,028 Invested US$6,315.

Containers construction. ISO 14001 Norm. Budget US$5,915 Invested US$5,081.

Contractor’s casino enablement and sewage improvement. Budget US$1,493 Invested US$1,144.

Implementation and Certification of the SGA ISO 14,001 (2º Stage). Budget US$26,413 Invested US$10,017.

Dated april 24 2003, Carlos Puschmann facility submit its Environmental Management System (SGA) developed and implemented between july 2002 and april 2003, to the initial Certification auditing. The development and evaluation of the SGA in conformity with the ISO 14,001 Norm was done by the company Det Norske Veritas and certified by the dutch organism RVA. This allows the plant to be the first one of particle bords in Latinoamerica and the firstt one of Masisa S.A. that obteins the Certification of its SGA by the ISO 14,001 Norm.

Masisa Brasil

Implementation and Certification of the SGA ISO 14,001. Budget US$88,900 Invested US$15,054.

Replacement of the natural gas by wood residuals, in the dust factory. Change of non renewal energy for a renewal one. Budget US$1,160,000 Invested US$962,669.

Water treatment pond, to utilize rains waters in the process. Budget US$150,000.00 Invested US$120,000.00.

Masisa Argentina S.A. – Concordia facility

Closing ~~shed construction in sawdust unload and storing zone, avoiding the scattering~~ of the dust during the unload. Budget THCH$ 22.996 Invested THCH$ 23.12 Rain waters drain construction in Rucci street, avoiding this waters to flow into neighbors houses and lands. Budget THCH$ 25.008 Invested THCH$ 0 — Implementation during 2003 Closing of rejection walls zone, in particle board drier yard, this contains dust in certain stages of the process. Budget ~~THCH$~~ US$5.749 ~~Investment~~Inversión ~~THCH~~US$ 0 ~~— Implementation during 2003 Plantation of two new green curtains (approx~~. 2,000 trees of different kind) inside the plant, parallels to Rucci street, in order to bring additional barrier to noise and wind. Budget THCH$ 7.761 Invested THCH$ 0 — Implementation during 2003 Enlargement of the liquid effluent plant; allowing bigger operating reliability to the primary effluent plant. Budget THCH$ 64.675 Investment THCH$ 0 — Implementation during 2003 Change in the reception bucket of the energy plant; allows the reception of wood residuals in order to use them as fuel, avoiding residuals piles formation that produce dust. Budget THCH$ 8.623 Invested THCH$ 0 — Implementation during 2003 ISO 14.001 Project. The Company pretend to certify the environmental management processes during 2003.

~~Forestal~~Plantation ~~Tornagaleones S.A. From~~of ~~April~~two ~~2001,~~new ~~this~~green ~~subsidiary started~~curtains ~~the~~(approx. ~~ISO 14001 certification process~~2,000 ~~that~~trees ~~implies the creation~~ of andifferent ~~environment management~~kind) ~~system.~~inside ~~For this purpose,~~ the ~~company has invested ThCh$32~~plant,~~510~~ ~~during~~parallels ~~2002.~~to ~~As of~~Rucci ~~December 31~~street, ~~2002 is~~ in ~~the~~order ~~implementation~~to ~~and~~bring ~~evaluation~~additional ~~phase~~barrier ~~for the Environmental Management System developed, in order~~ to ~~approve~~noise ~~the~~and ~~certification~~wind. ~~auditory~~Budget ~~during~~US$7,761 ~~2003~~Inversión US$5,079.

~~Forestal~~Masisa ~~Argentina~~Mexico S.A. The subsidiary Forestal Argentina S.A. has incurred in expenses for ThCh$11,154 during 2002 related to environmental studies (law 25,080) aimed to improve production and other environment related processes. This investments are the starting point for the beginning of an Environmental Management System that would be use as base for ISO 14001 certification. Another new was the inauguration of the Ayuí Natural Reservation in a land of the company in the Concordia-Entre Ríos zone and the beginning of the work of development of a second natural reserve in the Paso de los Libres – ~~Corrientes~~Durango ~~zone.~~ facility

Change of transport chain under cyclones L-2. The environmental effect consists of reduce environmental pollution. Budget US$15,000 Investment US$7,200.

Isolation of termic oil ducts in presses L-1 and L-2. The environmental effect consists of reduce fire risks.

Budget US$5,500 Investment US$5,100.

Change of feeding band sifter L-1. The environmental efect consists of reduce environmental pollution.

Budget US$10,000 Investment US$5,800.

Change of covers and ducts with chios escape L-1 and L-2. The environmental ef ect consists of reduce environmental pollution.

Budget US$12,000 Investment US$4,800.

Reparation of roofs and instalation of trasnsparent plastics principal nave.

The environmental effect consists of reduce the electric energy consume, using natural light.

Budget US$16,000 Investment US$6,500.

Chips transport to dryer L-1. The environmental effect consists of reduce environmental pollution.

Budget US$15,000 Investment US$3,500.

Control of dust burn L-2 (eliminates partially the use of petroleum ). The environmental effect consists of reduce environmental pollution for combustion gases

Budget US$10,000 Investment US$2,500.

Habilitation Sander L-1.

Optimization of hand work and electric energy reducing from 2 sanding lines to only one, improvement in dust aspiration (reduction of environmental pollution).

Budget US$489,365 Investment US$456,818.

Green Zone.

Optimum clasification of raw materials and modification of transport to reduce environmental pollution.

Budget US$916,250 Investment US$657,253.

Change of sieve and clasificator.

The environmental efect consists of reduce environmental pollution, with the separation of the dust to send it to the burner and use it as fuel, besides the reduction of the use of fuel, reduces fuel emissions. Optimization in the resin consume.

Budget US$737,674 Investment US$727,264.

Reduction of formaldehids emissions in presses L-1 and L-2.

Laboral environmental effect reducing formaldehids emissions inside the nave and makinf more efficient the discharge outside it.

Budget L-1: US$20,000 Investment M$.

Budget L-2: US$40,000 Investment M$.

Certification of Clean Industry

Budget US$12,000 Investment M$.

Forestal Tornagaleones S.A.

From April 2001, this subsidiary started the ISO 14001 certification process, that implies the creation of an environment management system. During 2002 exercise, the implementation and evaluation of this System continues, looking forward to

the auditing Certification in the 2003 exercise. For the development of this implementation the Company has disburse US$39,687 (US$19,866 in 2002).

Dated may 28 2003, the Company submit its Environmental Management System (SGA) developed and implemented during 2002, to the initial Certification auditing. The development and evaluation of the SGA in conformity with the ISO 14,001 Norm was done by the company Det Norske Veritas and certified by the dutch organism RVA.

This ended in the ISO 14,001 Certification for the next three years, of the environmental management of the processes of the Company that includes the “Establishment, manage and harvest of its forests”.

Since july 2003, the Company started the development of an integral manage plan that involves the principles of “Forest Stewardship Council” (FSC) and the design of a Security and Work Health Management system (SGSSO) based on norm OSHAS 18001.

Forestal Argentina S.A.

The subsidiary Forestal Argentina S.A. has incurred in expenses for US$18,772 during the first semester 2003 related to environmental studies (law 25,080) aimed to improve production and other environment related processes. This investments are the starting point for an Environmental Management system that serve as base for the ISO 14,001 Certification. Otherwise it has been inaugurate the Natural Reserve Ayuí in a land of the Company in the Concordia-Entre Ríos zone and the development work of a second reserve in the Paso de los Liebres-Concordia zone has been started.

Additionally the anvironmental impact monitoring plan in lands that have been planted since 2000 have continued.

Projects ended in 2003

Masisa Argentina

Closing shed construction in sawdust unload and storing zone, avoiding the scattering of the dust during the unload. Budget US$23,560 InvestedUS$24,873.

Rain waters drain construction in Rucci street, avoiding this waters to flow into neighbors houses and lands. Budget US$38,000 Investment US$38,102.

Enlargement of the liquid effluent plant; allowing bigger operating reliability to the primary effluent plant. Budget US$90,000 Investment US$92,934.

Change in the reception bucket of the energy plant; allows the reception of wood residuals in order to use them as fuel, avoiding residuals piles formation that produce dust. Budget US$7,500 Investment US$7,464.

Masisa Mexico

Production offices (1 and 2 floor), technical archive, capacitation, internet and laboratory rooms

With the purpose of improve the health conditions and social welfare of the workers.

Budget US$125,000 Investment US$124,964.

Projects ended in 2002

Masisa Chile

Environmental Management System ~~implementation~~ implementation and certification at Puschmann facility~~. Budget:~~ ~~ThCh$~~on ~~13.271~~its ~~Invested: ThCh$~~first ~~8.475~~stage, ~~(ThCh$ 5.475 in 2002)Environmental Management System implementation and certification at Cabrero facility.~~ Budget: ~~THCH$~~ ~~22.009~~US$18,468 Invested: MS USS$11,794 ~~6.697~~ (~~ThCh~~US$ ~~6.106 in 2002)Measurements of emissions associate to ISO 14.001 Norm. Cabrero and Puschmann facilities. Budget: ThCh$~~7~~.200 Invested: MS$ 3.333~~,619 ~~(ThCh$ 3.333~~ in 2002 exercise).

Environmental Management System implementation and certification at Cabrero facility on its first stage.

Budget: US$30,627 Invested: USS$6.697 (US$9,319 in 2002 exercise).

Measurements of emissions associate to ISO 14.001 Norm. Cabrero and Puschmann facilities.

Budget: US$10,019 Invested: USS$4,638 (US$4,638 in 2002 exercise).

Masisa Argentina S.A.

Dust transportation from particle board to MDF, in order to use it as fuel eliminating the atmospheric burner. Budget ~~ThCh~~US$ 114.,978 Invested ~~ThCh~~US$ 117.,780 .

~~SIGNATURE~~Masisa Mexico

~~Pursuant~~Habilitation toof ~~the~~dinning ~~requirements~~room, ofsickbay, ~~the~~bathroom ~~Securities~~and ~~Exchange~~dressing ~~Act~~room offor ~~1934~~workers, with the ~~registrant~~purpose ~~has~~of ~~duly~~improve ~~caused~~the ~~this~~health ~~report~~conditions toand besocial ~~signed~~welfare ~~on its~~of ~~behalf by~~ the ~~undersigned, thereunto duly authorized~~workers.

~~Date~~Budget: ~~June 12~~US$197,067 ~~2003~~ Invested: USS$189,362.

~~Masisa~~Water Swell.A. ~~By:~~Drilling, ~~/S/~~habilitation ~~Carlos~~of ~~Marín~~the ~~Carlos~~pipe ~~Marín~~to ~~Chief~~guide ~~Financial~~water, ~~Officer~~placement of a flux measurer, management of the exploitation water used, to make more efficien that use in the process.

~~FORWARD-LOOKING~~Budget: ~~STATEMENTS~~US$50,000 Invested: MUSS$49,590.

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are 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 cause actual results to differ materially from current expectations. 50

NEWS RELEASE

For Further Information:


Juan Diuana Investor Relations Masisa S.A. (56 2) 707-8710 Email: jdiuana@masisa.cl Internet: www.masisa.com	Patrick Kilhaney Citigate Dewe Rogerson Inc. (212) 840-0008 Email: patrick.kilhaney@citigatefi.com

MASISA S.A. REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST HALF 2003

(Santiago, Chile, August 29, 2003) – Masisa S.A. - (NYSE: MYS), South America’s leading particle board, MDF and OSB manufacturer, today announced its consolidated financial results stated in Chilean GAAP for the second quarter and the six-month period ended June 30, 2003.

Masisa reported a net income of Ch$ 690 million (US$1.0 million) for the six-month period ended June 30, 2003, which represents a 90.1% decrease when compared to the same period of the previous year. In the second quarter Masisa’s net income reached Ch$614 million, which represents a 79.0% decrease when compared to the second quarter of 2002, although this represents a 704.4% increase when compare to the first quarter figure.

The income decrease when compared to 2002 first half results is mainly explained by a lower operating income, principally derived from lower prices in particle board sales and a temporary reduction of the MDF production in Chile experienced during the first quarter of the year, that affected volume sales and production costs in that country.

During the first half of year 2003, the Company’s gross profit decreased by 8.1% when compared to the same period of the previous year. In spite of this, Masisa’s second quarter gross profit increased 6.9% when compared to the same period of the previous year, and increased 12.0% when compared to 2003 first quarter gross profit. Revenues amounted to Ch$90,461 million (US$129.4 million), representing an increase of 15.8% in comparison to the same period of the previous year, while cost of sales increased by 25.6%. Since SG&A expenses increased by 45.4%, Masisa’s operating income reached Ch$6,696 million (US$9.6 million), which represents a 48.2% decrease compared to the first half of 2002, mainly explained by lower prices in spite of an increase in volume sales. Second quarter operating income reached Ch$4,072 million (US$5.8 million), representing a 55.2% increase compared to the first quarter of 2003. The operating margin reached 7.4% during the first six-months of the year, which unfavorably compares with a 16.5% operating margin for the same period of 2002. The Company’s operating margin in the second quarter reached 9.2%, which favorably compares to the 5.7% margin of the first quarter 2003.

During the first half of 2003, consolidated particleboard volume sales increased by 6.8% when compared to the

same period of the previous year, reaching 281,045 m³. In the case of MDF, consolidated volume sales increased by 8.7%, reaching 327,685 m³. OSB consolidated volume sales increased 75.7%, reaching 56,635 m³.

The Company ended the period with a leverage ratio of 0.67 as of June 30, 2003, while cash and securities amounted to US$53.8 million. On a consolidated basis and starting in June, certain Masisa do Brasil liabilities are presented net of certain securities held by the Company related to the financing of those liabilities. Thus, the net leverage ratio as of June 30, 2003 was 0.56, remaining at the same level of March 31, 2003.

FINANCIAL HIGHLIGHTS

For the first half ended June 30, 2003:

The table below depicts Masisa’s consolidated financial highlights for the first half of 2003 and the variation when compared to first half 2002 figures, both in pesos and dollars as of June 30, 2003.


	1H 2003 Ch$ million		Variation			1H 2003 US$million		Variation

Revenues		90,461		15.8	%		129.4		18.0	%
Gross Profits		20,758		-8.1	%		29.7		-6.4	%
SG&A Expenses		-14,063		45.4	%		-20.1		48.1	%
Operating Income		6,696		-48.2	%		9.6		-47.2	%
Net Income		690		-90.1	%		1.0		-89.9	%

Earnings per ADS for the first half of 2003 were US$0.03 and EPS were Ch$0.74, compared to US$0.32 and Ch$7.50 for the first half of 2002.

For the second quarter ended June 30, 2003:

The table below depicts Masisa’s consolidated financial highlights for the second quarter of 2003 and the variation when compared to second quarter 2002 figures, both in pesos and dollars as of June 30, 2003.

	2Q 2003 Ch$ million		Variation			2Q 2003 US$million		Variation

Revenues		44,289		9.0	%		63.3		11.0	%
Gross Profits		10,969		6.9	%		15.7		8.9	%
SG&A Expenses		-6,897		38.5	%		-9.9		41.1	%
Operating Income		4,072		-22.9	%		5.8		-21.4	%
Net Income		614		-79.0	%		0.9		-78.7	%

Earnings per ADS for the second quarter of 2003 were US$0.03 and EPS were Ch$0.66, compared to US$0.13 and Ch$3.15 for the second quarter of 2002.

Sales Breakdown and Production Highlights

Masisa’s consolidated revenues for the first half ended June 30, 2003 and 2002, broken down by market, are as follows:

	1H2003			1H2002

Chile		31	%		41	%
Argentina		9	%		7	%
Brazil		26	%		21	%
Mexico		13	%		11	%
Other countries		21	%		21	%

Total sales* breakdown in cubic meters for the first half are as follows:

	1H2003		1H2002

Raw Particle Board		143,130		144,464
Melamine PB		126,072		107,149
Wood Veneered PB		11,842		11,586
TOTAL PB		281,045		263,199

MDF		278,022		272,293
Coated MDF		49,663		29,219
TOTAL MDF		327,685		301,512

OSB		56,635		32,236

* Consolidated figures excluding inter-company sales.

Total sales for particleboard, MDF and OSB were 665,364 cubic meters, which represents a 11.5% increase when compared to the first half of 2002. Door sales were 195,641 square meters, which represents a 6.5% decrease in comparison to the first half of 2002.

Total sales breakdown in cubic meters for the second quarter are as follows:

	2Q2003		2Q2002

Raw Particle Board		70,860		74,056
Melamine PB		62,901		55,785
Wood Veneered PB		5,520		6,801
TOTAL PB		139,281		136,641

MDF		134,335		153,246
Coated MDF		25,634		16,335
TOTAL MDF		159,970		169,581

OSB		31,134		26,856

* Consolidated figures excluding inter-company sales.

Total sales for particleboard, MDF and OSB were 330,385 cubic meters, which represents a 0.8% decrease when compared to the second quarter of 2002. Door sales were 96,139 square meters, which represents an 11.3% decrease in comparison to the second quarter of 2002.

Production costs for raw boards as of June 2003 and June 2002 are broken down as follows:

	Particle Board						MDF

	*2003*			*2002*			*2003*			*2002*

Wood		16	%		17	%		21	%		20	%
Chemicals		37	%		34	%		37	%		36	%
Energy		10	%		8	%		11	%		11	%
Labor		10	%		9	%		5	%		5	%
Depreciation		15	%		18	%		15	%		15	%
Others		13	%		14	%		11	%		13	%

MASISA, which listed its American Depositary Receipts on the NYSE in June 1993, is the leading manufacturer in South America of MDF and particle board, in its raw, melamine laminated and wood veneer versions. The Company produces approximately 90% of the particle board in Chile, 30% of the particle board in Argentina, 40% of the MDF in Chile and 50% in Argentina. In Brazil, MASISA, holds approximately 30% of the MDF market, while is the only producer of OSB. In Mexico the Company produces approximately 20% of the particle board. The Company is also a leading Chilean producer of wooden doors. Through its subsidiary Forestal Tornagaleones S.A., Masisa participates in the forestry business in Chile and Argentina.

- TABLES TO FOLLOW -

The tables below are adjusted for general price-level changes and expressed in millions of constant pesos as of June 30, 2003. All statements are presented according to Chilean GAAP.

CONSOLIDATED BALANCE SHEET	Million Ch$
	As of,

	Jun 30, 2003	Jun 30, 2002

ASSETS
Current Assets	142,568	90,948
Fixed Assets	442,072	437,511
Other Assets	5,830	26,031

TOTAL ASSETS	590,470	554,490

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities	115,020	70,289
Long-Term Liabilities	122,089	135,341
Minority Interest	43,677	42,095
Shareholders’ Equity	309,684	306,765

TOTAL LIABILITIES	590,470	554,490

CONSOLIDATED STATEMENTS OF INCOME	Million Ch$
	For the six-months period ended,

	Jun 30, 2003		Jun 30, 2002

TOTAL SALES	90,461		78,105
Cost of Sales	(69,703	)	(55,516	)
GROSS PROFIT	20,758		22,589
Selling and Administrative Exp.	(14,063	)	(9,672	)
OPERATING INCOME	6,696		12,917

Net Financial Result	(4.149	)	(1.877	)
Other Income/Expenses	(198	)	2.482
Price - Level Restatement	(994	)	(6.057	)

TOTAL OTHER INCOME (EXPENSE)- NET	(5.341	)	(5.452	)


Income Before Tax	1,391		7,465
Income Tax	(162	)	(2,500	)
Minority Interest	(539	)	1,718
Negative Goodwill Amortization	36		281

NET INCOME	690		6,965

Due to rounding, numbers may not add up.

For illustrative purposes only, Chilean pesos of each period have been translated to U.S. dollars at the observed exchange rate as of June 30, 2003 (US$1 = Ch$699.12) and as of June 30, 2002 (US$1 = Ch$688.05). All statements are presented according to Chilean GAAP.

CONSOLIDATED BALANCE SHEET	Million US$
	As of,

	Jun 30, 2003	Jun 30, 2002

ASSETS
Current Assets	203.9	127.7
Fixed Assets	632.3	614.4
Other Assets	8.3	36.6

TOTAL ASSETS	844.6	778.6



LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities	164.5	98.7
Long-Term Liabilities	174.6	190.0
Minority Interest	62.5	59.1
Shareholders’ Equity	443.0	430.8

TOTAL LIABILITIES	844.6	778.6

CONSOLIDATED STATEMENTS OF INCOME	Million US$
	For the six-months period ended,

	Jun 30, 2003		Jun 30, 2002

TOTAL SALES	129.4		109.7
Cost of Sales	(99.7	)	(78.0	)
GROSS PROFIT	29.7		31.7
Selling and Administrative Exp.	(20.1	)	(13.6	)
OPERATING INCOME	9.6		18.1

Net Financial Result	(5,9	)	(2,6	)
Other Income/Expenses	(0,3	)	3,5
Price - Level Restatement	(1,4	)	(8,5	)

TOTAL OTHER INCOME (EXPENSE)- NET	(7,6	)	(7,7	)


Income Before Tax	1,9		10,5
Income Tax	(0,2	)	(3,5	)
Minority Interest	(0,8	)	2,4
Negative Goodwill Amortization	0,1		0,4

NET INCOME	1,0		9,8

Due to rounding, numbers may not add up.

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