UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of March2007

MASISA S.A.

(formerly known as Terranova S.A.)

(Exact name of Registrant as specified in its charter)

MASISA S.A.

(formerly known as Terranova S.A.)

(Translation of Registrant’s name into English)

Republic of Chile

(Jurisdiction of incorporation or organization)

Av. Apoquindo 3650, Piso 10, Las Condes

Santiago, Chile

(Address of principal executive offices)

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

Form 20-F x Form 40-F

Indicate by check mark whether the registrant 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.

Yes No x

If yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2 (b): 82

1

On April 27, 2007 the registrant filed a report with the Superintendencia de Valores y Seguros de Chile (Chilean Superintendent 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, 2007. 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 generally accepted accounting principles in Chile and does not include reconciliation to generally accepted accounting principles in the United States.

2

MASISA S.A.

(Free translation from the original in Spanish)

	As of March31 st ,
	2007		2006
CONSOLIDATED BALANCE SHEET	THUS$		THUS$
ASSETS
Total current assets		507,704		555,725
Cash and Banks		7,724		13,927
Time deposits		30,868		85,473
Marketable securities (net)		12,249		10,856
Accounts receivable (net)		136,531		121,242
Notes receivable (net)		9,245		12,690
Sundry debtors		26,654		18,948
Notes and accounts receivable from related companies		6,964		6,096
Inventories (net)		198,637		207,189
Recoverable taxes		61,703		60,693
Prepaid expenses		9,042		9,841
Deferred taxes		5,316		2,430
Other current assets		2,771		6,340
Leasing Contracts (net)		0		0
Assets for Leasing(net)		0		0
Total fixed assets		1,547,274		1,465,112
Lands		142,894		131,997
Buildings and infrastructure		220,343		211,076
Machinery and equipment		849,473		830,624
Other fixed assets		759,019		670,928
Goodwill from technical reappraisal of fixed asset		7,390		7,390
Depreciation (less)		-431,845		-386,903
Total other assets		-17,075		-20,589
Investments in related companies		4,385		4,212
Investments in other companies		201		205
Goodwill		1,144		1,228
Negative goodwill (less)		-57,102		-61,876
Long term debtors		5,615		5,519
Long term notes and accounts receivable from related companies		0		0
Long term deferred taxes		0		0
Intangible assets		1,126		121
Amortization (less)		-214		-21
Others		27,770		30,023
Leasing Contracts (net)		0		0
TOTAL ASSETS		2,037,903		2,000,248

The accompanying Notes N° 1 to 32 are a fundamental part of these consolidated financial statements.

3

MASISA S.A.

(Free translation from the original in Spanish)

	As of March31 st ,
CONSOLIDATED BALANCE SHEET	2007 THUS$		2006 THUS$
Total current liabilities		307,680		253,770
Shortterm obligations to banks and financial institutions		71,569		51,412
Shortterm portion of longterm obligations to banks and financial institutions		63,497		55,051
Obligations to the public -short-term portion (promissory note)		0		0
Obligations to the public -short-term portion (bonds)		36,443		32,261
Longterm obligations due within one year				0
Dividends payable		467		561
Accounts payable		65,057		58,063
Notes payable		831		822
Sundry creditors		3,032		2,138
Notes and accounts payable to related companies		9,524		3,566
Provisions		31,543		19,994
Withholdings		14,464		18,346
Income tax		10,956		10,258
Revenue received in advance		26		759
Deferred Taxes		0		0
Other current liabilities		271		539
Total long-term liabilities		532,712		586,997
Obligations to banks and financial institutions		161,709		219,622
Long term obligations to the Public (bonds)		272,253		297,978
Notes payable Long Term		0		0
Long term sundry creditors		67		227
Notes and accounts payable to related companies Long Term		0		0
Long term Provisions		1,661		1,422
Long term Deferred taxes		77,487		45,523
Other long term liabilities		19,535		22,225
Minority interest		15,362		22,665
Total shareholders' equity		1,182,149		1,136,816
Paid/up capital stock		812,880		813,846
Capital revaluation reserve		0		0
Overcharge in company share sales		0		0
Other reserves		212,052		185,816
Retained Earnings		157,217		137,154
Reserves future dividends		51,424		51,424
Accumulated profits		102,557		84,563
Accumulated losses (less)		0		0
Net income (loss) for the period		3,236		1,167
Interim dividends (less)		0		0
Accumulated deficit for development period				0
Total liabilities		2,037,903		2,000,248

The accompanying Notes N° 1 to 32 are a fundamental part of these consolidated financial statements

4

MASISA S.A.

(Free translation from the original in Spanish)

	As of March31 st ,
	2007		2006
CONSOLIDATED INCOME STATEMENT	THUS$		THUS$
OPERATING RESULT		22,657		19,271
GROSS MARGIN		53,464		47,343
Operating Income		216,513		212,575
Operating costs (less)		-163,049		-165,232
Selling and administrative expenses (less)		-30,807		-28,072
NON /OPERATING RESULT		-16,783		-12,111
Financial Income		826		1,536
Net income on investments in related companies		19		153
Other non operating income		307		298
Loss on investments in related companies (less)		0		0
Amortization of goodwill (less)		-21		-21
Financial expenses (less)		-8,500		-10,558
Other non/operating expenses (less)		-7,743		-3,182
Price/level restatements		111		165
Exchange Differences		-1,782		-502
Result before income taxes and extraordinary items		5,874		7,160
Income taxes		-8,326		-9,826
Extraordinary Items				0
Net income (loss) before minority interests		-2,452		-2,666
Minority interests		4,552		2,694
Net Income (Loss)		2,100		28
Amortization negative goodwill		1,136		1,139
NET INCOME (LOSS) FOR THE PERIOD		3,236		1,167

The accompanying Notes N° 1 to 32 are a fundamental part of these consolidated financial statements.

5

MASISA S.A.

(Free translation from the original in Spanish)

	As of March31 st ,
CONSOLIDATED STATEMENT OF CASH FLOW -DIRECT	2007		2006
	THUS$		THUS$
Net cash flow from operating activities		30,584		3,013
Collection of accounts receivable		310,957		230,721
Financial income received		2,039		1,668
Dividends and other distributions received		0		0
Other income received		7,830		4,520
Payments of suppliers and personnel (less)		-274,716		-202,366
Interest paid (less)		-2,269		-15,442
Income tax paid (less)		-2,664		-4,201
Other expenses paid (less)		-519		-788
V.A.T. and similar paid (less)		-10,074		-11,099
Cash flow from financing activities		-6,424		59,782
Placement of shares		0		44,011
Loans drawn		37,444		115,236
Bonds		0		172,720
Documented loans from related companies		0		0
Other loans from related companies		0		0
Other financing sources		0		877
Dividends paid (less)		0		0
Distribution of capital (less)		0		0
Loans repaid (less)		-43,388		-116,582
Bonds paid (less)		0		-151,893
Repayment of documented loans from related companies (less)		0		0
Repayment of other loan form related companies (less)		-480		-344
Stock issuance and placement expenses (less)		0		0
Bond issuance and placement expenses (less)		0		-4,243
Other financing disbursements (less)		0		0
Net cash flow from investment activities		-20,349		-41,812
Sales of fixed assets		0		1,615
Sales of permanent investments		0		0
Sales of other investments		874		195
Collection of documented loans to related companies		0		0
Collection of other loans to related companies		0		0
Other investment income		-508		0
Acquisition of fixed assets (less)		-18,795		-18,130
Interest capitalized repaid (less)		-1,085		-1,152
Permanent investments (less)		0		-24,340
Investments in financial instruments (less)		-835
Documented loans to related companies (less)		0
Other loans to related companies (less)		0
Other investment disbursements (less)
Net total cash flow for the period		3,811		20,983
Effect of inflation on cash and cash equivalents		-19		-6,212
Net variation in cash and cash equivalents		3,792		14,771
Initial balance of cash and cash equivalents		47,049		97,858
Final balance of cash and cash equivalents		50,841		112,629

The accompanying Notes N° 1 to 32 are a fundamental part of these consolidated financial statements.

6

MASISA S.A.

(Free translation from the original in Spanish)

	As of March31 st ,
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES	2007 THUS$		2006 THUS$
Net income (loss) for the period		3,236		1,167
Results on sales of assets:		28		-51
(Profit) loss on sales of fixed assets		28		-51
Profit on sales of investments (less)		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:		17,793		22,360
Depreciation for the period		12,232		12,590
Amortization of intangible assets		98		162
Write/off and provisions		3,688		3,517
Income from investment in related companies (less)		19		-153
Loss on investment in related companies		0		0
Amortization of goodwill		21		21
Amortization of negative goodwill (less)		-1,136		-1,139
Net price/level restatements		-111		0
Net exchange difference		1,782		337
Other credit to income not affecting cash flow (less)		-2,848		0
Other charges to income not affecting cash flow		4,048		7,025
Changes in assets affecting cash flow (increases) decreases:		-26,502		-25,300
Accounts receivable		-11,085		-21,238
Inventories		1,486		7,984
Other assets		-16,903		-12,046
Changes in liabilities affecting cash flow (increases) decreases:		40,581		7,531
Accounts payable related to operating income		23,705		-3,056
Interest payable		1,298		249
Net income taxes payable		2,614		2,642
Other accounts payable related to non/operating income		5,901		1,722
Net value added tax and similar payable		7,063		5,974
Profit (loss) of minority interest		-4,552		-2,694
Net cash flow from operating activities		30,584		3,013

The accompanying Notes N° 1 to 32 are a fundamental part of these consolidated financial statements,

7

MASISA S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31 ST, 2007 AND 2006

(Free translation from the original in Spanish)

NOTE 1: INSCRIPTION IN THE SECURITIES REGISTER

Masisa S.A. is an open corporation whose shares are listed on the stock market; It was inscribed in the Securities Register with the number 0825 on March 24, 2004 and is subject to the regulatory authority of the Chilean Superintendence of Securities and Insurance and the United States Securities and Exchange Commission.

NOTE 2: SIGNIFICANT ACCOUNTING PRINCIPLES APPLIED

a) Accounting period

The consolidated financial statements cover the periods from January 1 to March 31, 2007 and 2006.

b) Preparation

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in Chile and the instructions of the Superintendence of Securities and Insurance, In the event of differences between the two, the instructions of the Superintendence of Securities and Insurance prevail.

c) Presentation

These financial statements are presented in United States dollars, the figures for the previous year are not therefore restated for comparison purposes.

Certain reclassifications have been made in the 2006 period for a better interpretation of these financial statements.

d) Basis of Consolidation

These consolidated financial statements include assets, liabilities, results, and cash flows at the closing of each period related to the Parent Company and its subsidiaries. The effects of transactions and unrealized results among the consolidating companies have been eliminated, and the ownership interest of minority investors is shown as Minority Interest.

e) Price-level Restatement

The indirect subsidiaries that carry their accounting figures in Chilean pesos, have adjusted their financial statements in order to recognize the effects on the variation of the price level restatement of that currency in the respective period. For these effects, the current legal dispositions have been applied, which establish that non currency assets and liabilities must be updated with effects on results. The applied index was the official Consumer Price Index, published by the National Statistics Institute (Instituto Nacional de Estadísticas) on a previous month basis, had a variation of -0.2% in 2007 (-0.3% in 2006).

f) Currency translation

The Company is authorized to keep its accounts in United States dollars. The dollar is used as the common unit of account so the balances of assets and liabilities in different currencies have been expressed in US dollars at the exchange rates at the end of each period. Exchange differences are charged/credited to the income statement.

8

At March 31, 2007 and 2006, the principal exchange rates against the US dollar were:

	2007		2006
	per US dollar		per US dollar
Chilean Peso		539.2100		526.1800
Reales		2.0504		2.1724
Bolivares		2,150.0000		2,150.0000
Argentinean Peso		3.1000		3.0820
Colombian Peso		2,238.7900		2,289.9800
Mexican Peso		11.0507		10.9228
Euro		0.7489		0.8253
Unidad de Fomento		0.0293		0.0294

g) Time deposits and Marketable securities

Time deposits are shown at their investment value plus indexation adjustments and accrued interest to the end of the period. Marketable securities relate to investments in mutual funds units shown at their respective redemption values at the period-end.

h) Inventories

- Products being processed and finished products are shown at their production cost, under the cost-by-absorption method.

- Standing forests are shown at the forestry appraisal value of the plantations that are expected to be harvested during the following year.

- Wood logs, pulp wood and native wood are shown at average production cost or at cost, as the case may be.

- Materials, spares, supplies, etc at their average cost.

- Imports in transit at cost

It is the Company’s policy to make allowances for the obsolescence of materials and spares and for the reduced value of finished products when they show certain aspects like:

- Replacement of old machinery or spares for unused machines

- Little alternative use of materials or spares with a low stock turnover.

- Possible loss of commercial value of finished products due to deterioration in lengthy storage, as compared to the standards demanded by the market.

The value of the inventories does not exceed their net estimated realization or replacement value, as the case may be.

i) Estimate of uncollectibles.

The Company’s policy is to make allowances for all accounts in judicial recovery and specific allowances for accounts that have a reasonable uncollectible risk.

9

j) Fixed Assets

Forest Plantations

Forest plantations are valued in accordance with the technical appraisal made by forestry engineers, Any incremental value so determined over the book value, that includes the financing cost during the growth period, has been credited to Forest reserve in Shareholders’ equity, The appraisal values have been determined on the basis of a formation cost value for young plantations and the estimated commercial value of standing timber for adult plantations.

The age at which the forest plantations are considered to be adult plantations, depends on their vegetative growth in each country.

Plantations expected to be harvested during the following year, based on a production plan, are shown as Inventories in Current assets.

Fixed assets, excluding plantations

Fixed assets are shown at their cost of acquisition or construction, or at their technical appraisal value, as the case may be, which includes financing costs during the construction period and the principal renovations or improvements. Maintenance and repair costs are charged to income in the period in which they are incurred.

Fixed assets that are temporally not in use at the period-end have been shown in Other fixed assets.

Fixed assets that are not in use and that are available for sale, have been classified as Others in the Other Assets account and are presented at their estimate realization value.

Technical appraisal

The technical appraisals were made in the form and periods set out in Circulars 1529, 1571 and 428 of the Superintendence of Securities and Insurance and are current at the date of these financial statements. No other technical appraisals have been booked.

k) Depreciation of fixed assets

Fixed assets are depreciated under the straight-line method over the estimated useful lives of the assets.

l) Intangible assets

The Company’s intangible assets, mainly water rights, are shown at their cost and are being amortized over a period of 40 years, as established in Technical Bulletin 55 of the Chilean Institute of Accountants.

10

m) Investments in related companies

Investments in related companies that do not consolidate, are shown at their proportional equity value, determined on the basis of their respective financial statements at the end of each period.

Foreign investments are adjusted to accounting principles generally accepted in Chile and translated to the company’s functional currency, as required by Technical Bulletin 64 of the Chilean Institute of Accountants.

The investments in national branches that take their accounting in Chileans pesos,

are controlled in this currency and expressed in US dollars at the closing of each period. The appraisement differences due to conversion to dollars, that are not originated by the results of the Company, are adjusted in the equity account Conversion differences reserve, inside the item Other reserves.

n) Goodwill and negative goodwill

This represents the difference between the acquisition cost and proportional equity value of the investment at the time of purchase. These differences are amortized over the terms indicated in the Note - Goodwill and negative goodwill.

ñ) Financial transactions under resale agreements

Purchases of securities under resale agreements are shown at their present value calculated using the discount rate used for determining the price of each instrument at the time of its acquisition, and are shown in Current assets under Other assets.

o) Bonds payable

These relate to the placement of bearer bonds in Chile by Masisa S.A. and abroad by Masisa Overseas Ltd. which are valued at their initial face value plus indexation and interest accrued to the end of each period. The difference between the initial face value and the placement value is shown as a deferred asset which is being amortized on a straight-line basis over the term of the obligation.

p) Income tax and deferred taxes

The Company records its tax liabilities in accordance with current tax legislation.

The effects of deferred taxes resulting from timing differences between the financial and tax balance sheets are shown taking into account the tax rate current at the estimated time of reversal, as established in Technical Bulletin 60 of the Chilean Institute of Accountants. The effects of deferred taxes at the time of the implementation of that bulletin (January 2000) and not previously recognized, have been deferred and are being amortized against income over the estimated term for the reversal of the item originating the timing difference.

q) Severance payments

At March 31 the 2007 the Company has constituted provisions in order to cover

the existent obligations with some unions that have a compensation benefit

guaranteed by retirement.

Provisions are made for the severance payments that the Company has to pay in any event under individual or group work contracts, according to the present value of the benefit using the accrued cost method, with an annual discount rate of 7% and a permanence ratio in line with years of service with the Company.

11

r) Sales

Sales are recorded at the time of the transfer of the goods or provision of services and relate to sales of products made by the Company and third parties. Sales prices are determined by conditions in the destination markets and are shown net of related taxes, price discounts and other things that directly affect their determination.

s) Derivative contracts

The Company has interest rate and currency swap contracts with financial institutions. These were defined as hedging of forecasted transactions and are shown as established in Technical Bulletin 57 of the Chilean Institute of Accountants.

The fair value of these instruments has been shown in Other assets or Other liabilities depending on whether they are receivable from or payable to the respective financial institution.

Unrealized gains corresponding to outstanding contracts of existing items have been shown in Other liabilities and the results realized have been taken to Financial expenses or Exchange differences, depending on the nature of the swap hedge.

In those cases where it is confirmed that the hedge taken was ineffective, the contracts have been treated as investment instruments.

t) Computer software

The software currently used by the Company was acquired from SAP Chile S.A. and consists of the SAP R/3 system, version 4.6 C, which is being amortized over 4 years.

u) Research and Development expenses

Research and development expenses are charged to the results of the year in which they are incurred. No significant disbursements have been made by the Company for this purpose, since the creation of the Company.

v) Statement of cash flows

Cash and cash equivalents are considered the short term investments that have a minimum risk and that are part of the normal cash management and which can be quickly converted into known amounts of cash, with the intention to make such conversion within 90 days.

Cash flows from operating activities include all such cash flows related to the Company’s business, including interest paid and received, dividends received and in general all those flows that are not otherwise defined as related to investment or financing. The operating concept used in this statement is broader than the one used in the Statement of income.

w) Share issue costs

In accordance with the instructions given in Circular 1370 of the Superintendence of Securities and Insurance and its later modification (Circular 1736), share issue and placement costs were shown in an account called "Share issue and placement costs", deducted from Reserves in Shareholders’ equity.

12

The following is a list of the consolidated subsidiaries:

		Ownership as of
		31/03/2007			31/03/2006
RUT	Company	Direct	Indirect	Total	Total
99537270-3	INVERSIONES INTERNACIONALES TERRANOVA S.A.	60.0000	0.0000	60.0000	60.0000
81507700-8	FORESTAL TORNAGALEONES S.A.	94.9061	0.0000	94.9061	94.9061
79959070-0	MASISA INVERSIONES LIMITADA	0.0000	0.0000	0.0000	100.0000
79616940-0	MASISA CONCEPCIÓN LIMITADA	0.0000	0.0000	0.0000	100.0000
79554560-3	INVERSIONES CORONEL LIMITADA	0.0000	0.0000	0.0000	100.0000
77790860-K	MASISA PARTES Y PIEZAS LIMITADA	99.8000	0.2000	100.0000	100.0000
Foreign	MASISA OVERSEAS LIMITED	100.0000	0.0000	100.0000	100.0000
Foreign	MADERAS Y SINTÉTICOS DEL PERÚ S.A.C.	99.0114	0.8897	99.9011	99.9011
Foreign	MASISA USA, INC.	25.1200	44.9280	70.0480	70.0480
Foreign	MADERAS Y SINTÉTICOS SERVICIOS S.A. DE C.V.	99.0000	1.0000	100.0000	100.0000
Foreign	MASISA ECUADOR S.A.	99.9000	0.1000	100.0000	100.0000
Foreign	MASISA DO BRASIL LTDA.	98.3907	1.6093	100.0000	100.0000
Foreign	MADERAS Y SINTÉTICOS MÉXICO S.A. DE C.V.	99.9999	0.0001	100.0000	100.0000
Foreign	TERRANOVA PANAMÁ S.A.	0.0000	60.0000	60.0000	60.0000
Foreign	TERRANOVA DE VENEZUELA S.A.	0.0000	60.0000	60.0000	60.0000
Foreign	COFORVEN S.A.	0.0000	59.9700	59.9700	59.9700
Foreign	FORESTAL TERRANOVA MEXICO S.A. DE C.V.	0.0000	59.9940	59.9940	59.9940
Foreign	CORPORACIÓN FORESTAL GUAYAMURE C.A.	0.0000	51.0000	51.0000	51.0000
Foreign	MASISA MADEIRAS LTDA.	0.0000	59.9940	59.9940	59.9940
Foreign	MASISA COLOMBIA S.A.	0.0000	59.9940	59.9940	59.9940
Foreign	CORPORACIÓN FORESTAL IMATACA C.A.	0.0000	60.0000	60.0000	60.0000
Foreign	ANDINOS C.A.	0.0000	60.0000	60.0000	60.0000
Foreign	FORESTAL ARGENTINA S.A.	0.0000	93.6530	93.6530	93.6500
Foreign	MASISA ARGENTINA S.A.	98.0000	2.0000	100.0000	100.0000
Foreign	FIBRANOVA C.A.	0.0000	60.0000	60.0000	60.0000
Foreign	MASNOVA DE MEXICO S.A. DE C.V.	0.0000	80.0000	80.0000	80.0000
Foreign	CC MAS S.A DE C.V.	0.0000	100.0000	100.0000	0.0000

13

NOTE 03 - CHANGES IN ACCOUNTING PRINCIPLES

During the period ended on March 31^st, 2007, there have been no changes in the use of accounting principles, relevant changes in any accounting estimate or changes related to the reporting entity with regard to the previous year that may significantly affect the interpretation of these consolidated financial statements.

14

NOTE 04 - SHORT AND LONG TERM ACCOUNTS RECEIVABLE

The detail of debtors for sales, detailed by the country of the corporation that has the account to be collected is:

	2007		2006
	MUS$		MUS$
-   Chile		39,234		31,041
-   Venezuela		14,644		9,541
-   Brazil		29,435		24,060
-   Argentina		5,096		5,172
-   México		21,815		26,009
-   Colombia		3,581		4,073
-   United States		18,921		18,148
-   Ecuador		1,480		1,953
-   Peru		2,325		1,245
Total		136,531		121,242

	Current
	Less than 90 days				More than 90 days and up to 1 year				Sub-Total		Current Total (net)				Long Term
	31-03-2007		31-03-2006		31-03-2007		31-03-2006				31-03-2007		31-03-2006		31-03-2007		31-03-2006
Account receivable		126,498		116,398		15,895		9,603		142,393		136,531		121,242		1,824		1,974
Uncollectible receivables estimate										5,862
Notes receivable		9,105		9,999		656		3,665		9,761		9,245		12,690		751
Uncollectible receivables estimate										516
Sundry debtors		24,680		15,878		2,408		3,490		27,088		26,654		18,948		3,040		3,545
Uncollectible receivables estimate										434
												Total Long Term receivable				5,615		5,519

15

NOTE 05 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES

The accounts receivable with related companies, correspond mainly to sales of products. These sales are expressed in US dollars.

Payment conditions and commercial accounts receivable are subject to normal market conditions and terms.

a)   Notes and Accounts Receivable

RUT	Company		ShortTerm				LongTerm
			31-03-2007		31-03-2006		31-03-2007		31-03-2006
Foreign		OXINOVA C.A		6,281		4,867		0		0
Foreign		AMANCO TUBOSISTEMAS HONDURAS		0		1		0		0
Foreign		PLYCEM CONSTRUSISTEMAS COSTA RICA S.A.		329		723		0		0
Foreign		PLYCEM CONSTRUSISTEMAS EL SALVADOR		116		129		0		0
Foreign		PLYCEM CONSTRUSISTEMAS GUATEMALA S.A.		212		208		0		0
Foreign		PLYCEM CONSTRUSISTEMAS NICARAGUA		0		168		0		0
Foreign		TEK BOARD OVERSEAS, INC.		26		0		0		0
TOTAL				6,964		6,096		0		0

b)   Notes and accounts payables from related companies:

RUT	Company		Short-Term				Long-Term
			31-03-2007		31-03-2006		31-03-2007		31-03-2006
Foreign		OXINOVA C.A		7,995		3,305		0		0
Foreign		TEK BOARD OVERSEAS, INC		1,529		261		0		0
TOTALES				9,524		3,566		0		0

16

c)   Related Party Transactions and balance:

							31-03-2007				31-03-2006
Company	RUT		Relationship Nature		Description of Transaction		Amount		Effect on Income, (debit/credit)		Amount		Effect on Income, (debit/credit))
OXINOVA C.A		Foreign		Merged		Services rendered		18		18		0		0
				Merged		Buys of products		5,881		-5,881		5,338		-5,338
				Merged		Land rent		3		3		3		2
PLYCEM CONSTRUSISTEMAS GUATEMALA S.A.		Foreign		Common Parent		Sales of products		184		77		165		59
PLYCEM CONSTRUSISTEMAS COSTA RICA S.A.		Foreign		Common Parent		Sales of products		276		116		604		211
PLYCEM CONSTRUSISTEMAS NICARAGUA S.A.		Foreign		Common Parent		Sales of products		0		0		131		46
PLYCEM CONSTRUSISTEMAS EL SALVADOR S.A.		Foreign		Common Parent		Sales of products		122		59		101		29

17

NOTE 06 - INVENTORIES

Inventories as of March 31, 2007 and 2006 include the following:

	2007		2006
	THUS$		THUS$
Finished and process products		90,128		99,504
Imports in transit		21,630		20,480
Standing Timber		40,609		34,549
Raw Material		21,603		23,217
Materials, spares, supplies & others		24,667		29,439
TOTAL		198,637		207,189

Inventories are shown net of allowance for THUS$3,823 (THUS$2,475 in 2006).

NOTE 07 - DEFERRED TAXES AND INCOME TAXES

a) Income tax

At March 31, 2007 the Company made no provision for income tax as it has total accumulated tax losses of ThUS$195,565 (ThUS$290,241 at March 31, 2006).

b) Deferred taxes

As required by Technical Bulletins 60, 68, 69 and 71 of the Chilean Institute of Accountants and Circular 1,466 of the Superintendence of Securities and Insurance, the Company showed deferred taxes arising from timing differences, tax losses and other events that create differences between the accounting and tax treatment of assets and liabilities, shown in the following table.

c) The result of income tax, generated by each country, is as follows:

Country	2007			2006
	THUS$			THUS$
Chile		( 1,316	)		( 1,611	)
Argentina		( 1,964	)		( 1,869	)
Brazil(*)		( 3,802	)		( 5,289	)
United States		1,810			30
Peru		( 337	)		( 258	)
Colombia		( 417	)		( 234	)
Others		( 2,300	)		( 595	)
Total		( 8,326	)		( 9,826	)

(*) The income tax in the Brazilian companies is strongly influenced by the variation between the Real currency and the US dollar, which generates exchange difference in the local accounting, when reevaluating the net liabilities in US dollars (nearly THUS$ 150,000). The variation registered in the real in this period is 4.1% (7.2% in 2006).

18

Deferred Taxes.

	31-03-2007								31-03-2006
	Assets deferred taxes				Liabilities deferred taxes				Assets deferred taxes				Liabilities deferred taxes
	Short Term		Long Term		Short Term		Long Term		Short Term		Long Term		Short Term		Long Term
Temporary Differences
Provision for uncollectible accounts		1,498		257		0		0		1,256		0		0		0
Anticipated income		0		0		0		0		0		0		0		0
Vacation provisions		569		0		0		0		401		0		0		0
Amortization of intangible assets		0		0		0		0		0		0		0		0
Leasing assets		0		0		0		0		0		0		0		0
Manufacturing expenses		137		0		1,134		121		0		0		604		0
Fixed assets depreciation		0		0		0		34,414		0		0		0		33,960
Severance payment		0		0		0		0		0		0		0		0
Others events		1,066		92		0		1,177		886		144		17		184
Expenses paid in advance		0		0		66		43		0		0		106		271
Fixed assets provision		0		1,439		0		0		0		2,012		0		0
Obsolescence provision		681		0		0		0		225		40		0		0
Other provisions		1,572		1,713		0		1,225		665		1,128		0		49
Forestry Reserve		0		0		0		48,131		0		0		0		48,682
Tax losses		3,369		83,385		0		0		378		116,735		0		0
Cost of activated funding		0		0		980		6,068		0		0		0		6,989
Non realized profits provision		521		202		0		0		0		342		558		0
Activated expenses in plantations		0		0		55		15,637		0		0		62		17,938
Exchange rate variations		0		0		0		19,373		0		0		0		14,898
Others
Balance for Complementary assets net of amortization		0		1,096		0		16,337		34		1,431		0		28,196
Valuation provisions		1,862		53,627						0		69,718
Total		7,551		32,365		2,235		109,852		3,777		49,252		1,347		94,775

19

Income Taxes:

Items	31-03-2007		31-03-2006
Regular tax expense (tax provision)		-3,393		-2,653
Tax expenses adjustment (previous period)		0		0
Effect for assets and liabilities for deferred taxes of the period		-4,109		-2,734
Tax credit due to tax loss		-372		-6,051
Effect for amortization of deferred assets and liabilities complementary accounts		-418		-349
Effect on assets and liabilities of deferred taxes for the changes in the valuating provisions		0		2,103
Other charges and credits in the account		-34		-142
Total		-8,326		-9,826

20

NOTE 08 - FIXED ASSETS

Goods related to fixed assets are valued as described in note 2 and are summarized as follows:

	2007							2006
	Book value		Cumulative Depreciation			Net Fixed Assets		Book value		Cumulative Depreciation			Net Fixed Assets
Fixed assets	THUS$		THUS$			THUS$		THUS$		THUS$			THUS$
Lands		142,894		-			142,894		131,997		-			131,997
Building and infrastructure		220,343		(72,809	)		147,534		211,076		(66,343	)		144,733
Machinery andequipment		849,473		(312,828	)		536,645		830,624		(273,700	)		556,924
Other fixed assets		759,019		(41,899	)		717,120		670,928		(42,575	)		628,353
-Plantations		614,326		-			614,326		562,448		-			562,448
-Sites under Construction		78,441		-			78,441		36,824		-			36,824
-Other fixed assets		66,252		(41,899	)		24,353		71,656		(42,575	)		29,081
Negative Goodwill
Technical Reappraisal:		7,390		(4,309	)		3,081		7,390		(4,285	)		3,105
- Land		2,672		-			2,672		2,672		-			2,672
- Building and infrastructure		4,718		(4,309	)		409		4,718		(4,285	)		433
Total		1,979,119		(431,845	)		1,547,274		1,852,015		(386,903	)		1,465,112

Depreciation for the year :	2007		2006
	THUS$		THUS$
Effect on Income
From Operations		11,402		11,415
Administrative Expenses		1,094		827
Non-operating		137		275
Activated
Negative Goodwill in
Plantations		54		73
Total		12,687		12,590

21

Plantations:

In the case of plantations, the book value includes forest appraisals conducted by forestry engineers. This value is distributed among plantations under fixed assets and forests in exploitation classified as inventories.

The Company and its subsidiaries that posses a forestry line of business, have recognized as of closing of their business periods a greater value of their forests and plantations, which is included in the forest reserve presented under the Equity item and has been determined through a comparison of the valorization described in Note 2.

Greater value of fixed assets due to real financial costs regarding plantations’ financing according to what is indicated in note 2 reached the amount of THUS$1,611 as of March 31, 2007,(THUS $942 in 2006) in addition, there was a de-activation by currency exchange difference of THUS$102 (activation of THUS$555 in 2006).

Forestry subsidies:

The forestry subsidies received by Masisa S.A. are credited to the forestry subsidies account which is shown deducted from Plantations, and amounts to ThUS$5,386 at March31, 2007 (ThUS$5,492 at March31, 2006).

Accounting values provisions and inactive assets:

The Company has constituted a provision in order to adjust the countable value of the lines which operating flow projections reveal that the net flows that this line would generate in the future would not cover the respective charges due to depreciations.

Additionally, the company has temporarily inactive goods in some of its plants. For these assets the company maintains a provision, depreciation is shown under other non-operating expenses.

22

NOTE 09 - INVESTMENTS IN RELATED COMPANIES

In order to establish the book value of investments, unrealized profits from operations with related companies have been eliminated.

The Company included in its investments, liabilities from Forestal Tornagaleones in UF’s equivalent to UF1,108,969, according to what is established in Technical Bulletin No, 64 of the Chilean Institute of Accountants, resulting in an accumulated restatement as of March 31, 2007 of THUS$11,446 (THUS$11,418 in 2006).

									Participation %				Shareholder's Equity
	Company		Country		Investment Control Currency		Number of shares		31-03-2007		31-03-2006		31-03-2007		31-03-2006
Foreign		OXINOVA S.A.		VENEZUELA		DOLLARS		1,963,564		49.00000		49.00000		8,949		8,553

							Net Income for the period				Shareholder's Equity to just value				Net Income to just value
	Company		Country		Investment Control Currency		31-03-2007		31-03-2006		31-03-2007		31-03-2006		31-03-2007		31-03-2006
Foreign		OXINOVA S.A.		VENEZUELA		DOLLARS		39		311		0		0		0		0

							Net Income Accrued				VP/VPP				Unrealized Result				Book value of investment
	Company		Country		Investment Control Currency		31-03-2007		31-03-2006		31-03-2007		31-03-2006		31-03-2007		31-03-2006		31-03-2007		31-03-2006
Foreign		OXINOVA S.A.		VENEZUELA		DOLLARS		19		153		4,385		4,212		0		0		4,385		4,212
Total												4,385		4,212		0		0		4,385		4,212

23

NOTE 10. INVESTMENT IN OTHER COMPANIES.

It corresponds to shares in other companies such as Unión El Golf S.A., Control de Plagas Forestales, Copelec Ltd, among others. At the closing of the period, they had a value of THUS$ 201 (THUS$ 205 as of March 31 2006).

24

NOTE 11 - GOODWILL AND NEGATIVE GOODWILL

Goodwill

The purchase of the subsidiary Masisa Cabrero S.A., formerly Fibranova S.A., by the former Masisa S.A., generated goodwill for the Company which its expected to be amortized over 20 years in view of the expected returns from that subsidiary.

Negative goodwill

The purchase of 43.16% of the former Masisa S.A. by Forestal Terranova S.A. (company merged with the former Terranova S.A.) in July 2002 and of 0.544% in June 2003, generated a negative goodwill for the Company which it is intended to amortize over 15 years, taking into account that the assets of that company are mainly industrial and have an average useful life similar to that period.

The purchase by Forestal Terranova S.A. (company merged with the former Terranova S.A.) in October 2003 of 40.00% of Terranova S.A. generated negative goodwill which it is intended to amortize over 20 years.

The participation of the former Masisa S.A. in the capital increase of June 27, 2002 of Forestal Tornagaleones S.A., generated negative goodwill which it is intended to amortize over 20 years.

On November 15, 2005, Masisa S.A. bought 9,987,400 shares, equivalent to 34.35% of Forestal Tornagaleones S.A., generating negative goodwill that it is being amortized over the remaining period of the original term, that is 20 years.

In January 2006 Forestal Tornagaleones S.A. purchased 22,406,455 shares, equivalent to 48.6% of Forestal Argentina, generating a Negative goodwill that it is being amortized in 20 years.

Goodwill

			31-03-2007				31-03-2006
RUT	Company		Amortization Amount for the Period		Goodwill		Amortization Amount for the Period		Goodwill
96623490-3		MASISA CABRERO S.A.		21		1,144		21		1,228
		TOTAL		21		1,144		21		1,228

Negative Goodwill

			31-03-2007				31-03-2006
RUT	Company		Amortization Amount for the Period		Negative Goodwill		Amortization Amount for the Period		Negative Goodwill
81507700-8		FORESTAL TORNAGALEONES S.A.		214		12,408		214		13,262
92257000-0		MASISA S.A. (OLD)		691		28,610		691		31,376
96802690-9		TERRANOVA S.A.		84		5,619		84		5,955
Foreign		CORPORACIÓN FORESTAL GUAYAMURE C.A.		31		1,720		31		1,843
Foreign		FORESTAL ARGENTINA S.A.		116		8,745		119		9,440
		TOTAL		1,136		57,102		1,139		61,876

25

NOTE 12 - INTANGIBLES

Under the intangibles account, the Company has classified mainly SAP R3 Licenses, Water Rights and other minors, which are being amortizised. The value of these assets as of March 31, 2007 is THUS$ 912 (THUS$ 100 as of March 2006).

26

NOTE 13 - OTHER (ASSETS)

As of March31^ST, 2007 and 2006, respectively, the following are the balances of Other Assets:

	2007		2006
	THUS$		THUS$
Market value of swaps		4,592		3,968
Goodwill and expenses for placing bonds (1)		4,610		6,344
Bond issue & placement costs (1)		5,537		6,564
Exploitation rights (2) (3)		10,209		10,679
Goods for sale and others		2,822		2,468
TOTAL		27,770		30,023

(1)  Net of Amortization

(2)  In May 1997, subsidiary Terranova de Venezuela S.A. pre-paid the lease of a CVG-Proforca sawmill amounting to US$10 millions to enter the forestry business in Venezuela. Since the lease of the above sawmill was critical for negotiating purchase agreements for 59,000 hectares of Caribbean wood plantations and thus enter the forestry business in Venezuela, the Company’s Management classified the pre-paid lease as a forest exploitation right, since it considered it as part of the exploitation rights. The items described will be amortized based on the cubic meters (m3) obtained from the forest product that will be produced by the Terranova de Venezuela S.A.’s forest over a period of 20 years (starting from 1997), estimated in 13,168,000 m3.

(3) In fiscal year ended December 31, 2000, Terranova de Venezuela S.A. acquired from its subsidiary Coforven S.A., exploitation rights for 236,000 m3/year of wood and a sawmill for THUS$ 3,324. Exploitation rights will be amortized based on the volume of m3 of forest products that will be produced by the forest for supplying the plants. Goodwill balance from the investment in Coforven recorded in the accounting books amounted to THUS$987 as of the sale date, which was included as part of the cost of exploitation rights, since Terranova de Venezuela S.A. is acquiring a significant share of Coforven S.A.’s productive assets. The asset value and exploitation rights were sold at reasonable market values and unrealized results were eliminated.

27

NOTE 14 - BANK AND FINANCIAL INSTITUTIONS SHORT-TERM OBLIGATIONS

Short Term (code 5.21.10.10)

									Types of currency and index readjustment
RUT	Bank or financial institution		US Dollar						Euro				Yen				Other foreign currency						UF				ThCh$ no adjustment				TOTAL
			31-03 2007			31-03- 2006			31-03- 2007		31-03- 2006		31-03- 2007		31-03- 2006		31-03- 2007			31-03- 2006			31-03- 2007		31-03- 2006		31-03- 2007		31-03- 2006		31-03- 2007		31-03- 2006
97041000-7		BANKBOSTON N.A.		1,600			0			0		0		0		0		0			0			0		0		0		0		1,600		0
97004000-5		BANCO DE CHILE		7,015			0			0		0		0		0		0			0			0		0		0		0		7,015		0
97919000-K		ABN AMRO BANK		3,750			0			0		0		0		0		0			0			0		0		0		0		3,750		0
97032000-8		BANCO BBVA		2			1,393			0		0		0		0		0			0			0		0		0		0		2		1,393
97039000-6		BANCO SANTANDER		6			0			0		0		0		0		0			0			0		0		0		0		6		0
Foreign		BANCO ITAU BBA S.A.		11			1,182			0		0		0		0		0			0			0		0		0		0		11		1,182
Foreign		HSBC BANK USA		0			2,519			0		0		0		0		0			0			0		0		0		0		0		2,519
Foreign		BANCO MERCANTIL		0			0			0		0		0		0		25,290			16,282			0		0		0		0		25,290		16,282
Foreign		ABN AMRO BANK		0			0			0		0		0		0		0			5,225			0		0		0		0		0		5,225
Foreign		BANCO PROVINCIAL		0			0			0		0		0		0		4,913			0			0		0		0		0		4,913		0
Foreign		BANCO DE VENEZUELA		0			0			0		0		0		0		19,856			24,302			0		0		0		0		19,856		24,302
Foreign		CITIBANK VENEZUELA		0			0			0		0		0		0		9,126			0			0		0		0		0		9,126		0
Foreign		BANCO ALFA DE INVESTIMENTOS		0			509			0		0		0		0		0			0			0		0		0		0		0		509
		OTHERS		0			0			0		0		0		0		0			0			0		0		0		0		0		0
		OTHERS		0			0			0		0		0		0		0			0			0		0		0		0		0		0
		Total		12,384			5,603			0		0		0		0		59,185			45,809			0		0		0		0		71,569		51,412
		Principal owed		12,300			4,390			0		0		0		0		56,091			45,455			0		0		0		0		68,391		49,845
		Average Rate		5.36	%		5.33	%										10.2	%		14.31	%

Long Term - Short Term (code 5.21.10.20)

28

									Types of currency and index readjustment
RUT	Bank or financial institution		US Dollar						Euro				Yen				Other foreign currency					UF				ThCh$ no adjustment				TOTAL
			31-03- 2007			31-03- 2006			31-03- 2007		31-03- 2006		31-03- 2007		31-03- 2006		31-03- 2007		31-03- 2006			31-03- 2007		31-03- 2006		31-03- 2007		31-03- 2006		31-03- 2007		31-03- 2006
97006000-6		BANCO DE CREDITO E INVERSIONES		8,628			7,249			0		0		0		0		0		0			0		0		0		0		8,628		7,249
97030000-7		BANCO ESTADO		8,703			6,530			0		0		0		0		0		0			0		0		0		0		8,703		6,530
97053000-2		BANCO SECURITY		2,621			1,964			0		0		0		0		0		0			0		0		0		0		2,621		1,964
97023000-9		BANCO CORPBANCA		17,818			13,296			0		0		0		0		0		0			0		0		0		0		17,818		13,296
97039000-6		BANCO SANTANDER		5,609			4,361			0		0		0		0		0		0			0		0		0		0		5,609		4,361
96658480-7		RABOINVESTMENTS CHILE S.A.		0			1,099			0		0		0		0		0		0			0		0		0		0		0		1,099
97919000-K		ABN AMRO BANK		0			106			0		0		0		0		0		0			0		0		0		0		0		106
97032000-8		BANCO BBVA		2,894			2,189			0		0		0		0		0		0			0		0		0		0		2,894		2,189
Foreign		ABN AMRO BANK		196			0			0		0		0		0		0		1,828			0		0		0		0		196		1,828
Foreign		CORPBANCA VENEZUELA		0			0			0		0		0		0		0		2,105			0		0		0		0		0		2,105
Foreign		WESTDEUTSCHE LANDESBANK		4,861			3,333			0		0		0		0		0		0			0		0		0		0		4,861		3,333
Foreign		CITIBANK N.A.		443			240			0		0		0		0		0		0			0		0		0		0		443		240
Foreign		COMERICA BANK		0			0			0		0		0		0		0		0			0		0		0		0		0		0
Foreign		BANCO CHILE NEW YORK BRANCH		0			0			0		0		0		0		0		0			0		0		0		0		0		0
Foreign		THE BANK OF NOVA SCOTIA		443			240			0		0		0		0		0		0			0		0		0		0		443		240
Foreign		RABOBANK NEDERLAND		6,019			2,969			0		0		0		0		0		0			0		0		0		0		6,019		2,969
Foreign		KREDITANSTALT FUR WIEDERAUFBAU		3,802			5,482			0		0		0		0		0		0			0		0		0		0		3,802		5,482
Foreign		BANCO ITAU BBA		1,460			2,060			0		0		0		0		0		0			0		0		0		0		1,460		2,060
		Others		0			0			0		0		0		0		0		0			0		0		0		0		0		0
		TOTAL		63,497			51,118													3,933							0		0		63,497		55,051
		Equity Amount in debt		59,588			47,156													3,844											59,588		51,000
		Average Rate		6.18	%		3.44	%												16.1	%

Percentage of the amount owed in foreign currency (%)	55.98	%
Percentage of the amount owed in local currency (%)	44.02	%

29

NOTE 15 - BANK AND FINANCIAL INSTITUTIONS LONG-TERM

The loans granted by Masisa Inversiones Limitada (Company absorbed by Masisa S.A. in June 2006) to the subsidiary Masisa do Brazil Limitada through Banco Itaú BBA S.A., that rise to the amount of US$104,523,218.88, as shown in “Notes” issued by Banco Itaú BBA S.A., of which Masisa S.A. is the holder, these loans are presented reducing the corresponding debts for equal amount that the subsidiary Masisa do Brazil Limitada has with Banco Itaú BBA S.A.. This is recorded in “Cédulas de Crédito Bancário - Res,2770” which beneficiary is Banco Itaú BBA S.A., this in consideration that the documents in which this operations are established, allows to settle them with only the notification to the bank with the anticipation established in the respective documents.

Additionally and as consequence of the previously mentioned, the interests generated by the “Notes” and “Cédulas de Crédito Bancário - Res,2770” are presented net in the statement of income.

30

													More than 10 years			Date close actual period				Date close past period
RUT	Bank or financial institution		Currency		More than 1 year Up to 2 year		More than 2 year up to 3 year		More than 3 year Up to 5 year		More than 5 year Up to 10 year		amount		term	Total Long Term to close The financial Statements		Rate		Total Long Term to close The financial Statements
97006000-6		BANCO DE CREDITO E INVERSIONES		Dollar		5,278		4,167		0		0		0			9,445		6.56		0
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				14,722
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0
96658480-7		RABOINVESTMENTS CHILE S.A.		Dollar		0		0		0		0		0			0				12,500
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0
97030000-7		BANCO DEL ESTADO DE CHILE		Dollar		2,116		0		0		0		0			2,116		6.44		6,358
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0
97036000-K		BANCO SANTANDER		Dollar		2,054		0		0		0		0			2,054		6.45		4,976
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0

31

													More than 10 years			Date close actual period				Date close past period
RUT	Bank or financial institution		Currency		More than 1 year Up to 2 year		More than 2 year up to 3 year		More than 3 year Up to 5 year		More than 5 year Up to 10 year		amount		term	Total Long Term to close The financial Statements		Rate		Total Long Term to close The financial Statements
97023000-9		BANCO CORPBANCA		Dollar		6,997		0		0		0		0			6,997		6.46		15,007
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0
97053000-2		BANCO SECURITY		Dollar		1,167		0		0		0		0			1,167		6.48		2,334
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0
97032000-8		BANCO BBVA		Dollar		722		0		0		0		0			722		6.44		0
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0

32

													More than 10 years			Date close actual period				Date close past period
RUT	Bank or financial institution		Currency		More than 1 year Up to 2 year		More than 2 year up to 3 year		More than 3 year Up to 5 year		More than 5 year Up to 10 year		amount		term	Total Long Term to close The financial Statements		Rate		Total Long Term to close The financial Statements
Foreign		THE BANK OF NOVA SCOTIA		Dollar		0		4,950		19,800		0		0			24,750		5.8		24,750
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0
Foreign		CORP BANCA VENEZUELA		Dollar		0		0		0		0		0			0				3,114
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0
Foreign		CITIBANK N.A.		Dollar		0		4,950		19,800		0		0			24,750		5.8		24,750
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0

33

													More than 10 years			Date close actual period				Date close past period
RUT	Bank or financial institution		Currency		More than 1 year Up to 2 year		More than 2 year up to 3 year		More than 3 year Up to 5 year		More than 5 year Up to 10 year		amount		term	Total Long Term to close The financial Statements		Rate		Total Long Term to close The financial Statements
Foreign		RABOBANK NEDERLAND		Dollar		4,540		9,310		26,890		5,618		0			46,358		6.05		38,720
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0
Foreign		KREDITANSTALT FUR WIEDERAUFBAU		Dollar		3,800		3,800		0		0		0			7,600		7.58		26,611
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0
Foreign		WESTDEUTSCHE LANDESBANK		Dollar		0		4,950		19,800		0		0			24,750		5.81		32,614
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0
Foreign		BANCO BBVA		Dollar		0		0		0		0		0			0				2,166
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0

34

													More than 10 years			Date close actual period				Date close past period
RUT	Bank or financial institution		Currency		More than 1 year Up to 2 year		More than 2 year up to 3 year		More than 3 year Up to 5 year		More than 5 year Up to 10 year		amount		term	Total Long Term to close The financial Statements		Rate		Total Long Term to close The financial Statements
Foreign		ABN AMRO BANK		Dollar		0		2,200		8,800		0		0			11,000		5.25		11,000
				Euros		0		0		0		0		0			0				0
				Yens		0		0		0		0		0			0				0
				UF		0		0		0		0		0			0				0
				non adjustable $		0		0		0		0		0			0				0
				Other currencies		0		0		0		0		0			0				0
Total						26,674		34,327		95,090		5,618		0			161,709				219,622

Total amount of liabilities in foreign currency:	0	%
Total amount of liabilities in local currency:	100	%

35

NOTE 16 - SHORT AND LONG TERM OBLIGATIONS WITH THE PUBLIC (PROMISSORY NOTES AND BONDS)

The bond obligations are:

Series C1 bonds

- Relate to 1,000 certificates of US$10,000 and Series C2 bonds corresponding to 200 certificates of US$100,000. Repayment of principal is due on June 15, 2008. They accrue compound interest in arrears at 5.00% annually, calculated on the basis of equal semi-annual 180-day periods starting on December 15, 2003.

Series A bonds

- Consist of 5,000 certificates of UF500 each for a 7-year term and a two-year grace period for the repayment of principal. They accrue compound interest in arrears at 5.00% annually, calculated on the basis of equal semi-annual 180-day periods starting on December 15, 2003, with payments due on June 15 and December 15 each year. Repayments of principal are due in ten semi-annual payments starting on June 15, 2006.

Series B bonds

- Consists of 1,404 certificates of UF500 each for a 21-year term and a seven-year grace period for the repayment of principal. They accrue compound interest in arrears at 6.25% annually, calculated on the basis of equal semi-annual 180-day periods starting on December 15, 2003, with payments due on June 15 and December 15 each year. Repayments of principal are due in twenty-eight semi-annual payments starting on June 15, 2011.

On January 12, 2006, the company issued two new lines of bonds which are recorded in the Securities Register of the Superintendence of Securities and Insurance with the numbers 439 and 440, on November 14 and 15, 2005 respectively, detailed as follows:

Series E bonds

- UF 2,750,000 was placed against the line No,439, with a 21-year term and 1 year’s grace and an interest rate of 4.75%.

Series D bonds

- UF 2,000,000 was placed against the line No,440, with a 7-year term and 2 year’s grace and an interest rate of 4.25%.

- The Series A and D bonds are partially covered against the dollar exchange rate exposure against the Unidad de Fomento by swap contracts with Citibank N.A., Agency in Chile, Morgan Stanley Capital Services Inc, and Banco Santander Santiago (see Note 25) and have therefore been valued as required by paragraph 11 of Technical Bulletin 57 of the Chilean Institute of Accountants.

The subsidiary Masisa Overseas has outstanding bonds (“Private Placement”) for THUS$18,000. They were acquired by Insurance and Fund Companies in the United States. The amortization is THUS$9,000 per year, and the payment day is May 15, of each year, ending the year 2008. The interest rate is paid semi annually, in May and November of each year.

36

NOTE 16 - SHORT AND LONG TERM OBLIGATIONS WITH THE PUBLIC (PROMISSORY NOTES AND BONDS)

Registration Number or Instrument Identification	Series		Nominal amount Valid placement									Periodicity				Par Value
Short term Portion of Long Term Bond					Currency of bond adjustment		Interest rate			Final maturity		Interest Payment		Amortization Payment		31-03-2007		31-03-2006		Place of the transaction Chile or Foreign
336		C		0		THUSD		5.00	%		-		Semi annual		2008		432		432		Local
356		A		500		THU.F.		5.00	%		-		Semi annual		2006		18,018		18,250		Local
355		B		0		THU.F.		6.25	%		-		Semi annual		2011		429		429		Local
440		D		0		THU.F.		4.25	%		-		Semi annual		2008		1,315		1,313		Local
439		E		137		THU.F.		4.75	%		-		Semi annual		2007		6,701		2,015		Local
PRIVATE PLACEMENT		B		9,000		THUSD		8.06	%		-		Semi annual		2007		9,548		9,822		Foreign
Total Short Term Portion																	36,443		32,261
Long Term Bond
336		C		30,000		THUSD		5.00	%		-		Semi annual		2008		30,000		30,000		Local
356		A		1,500		THU.F.		5.00	%		-		Semi annual		2006		52,599		64,834		Local
355		B		702		THU.F.		6.25	%		-		Semi annual		2011		23,920		23,902		Local
440		D		2,000		THU.F.		4.25	%		-		Semi annual		2008		67,446		67,609		Local
439		E		2,612		THU.F.		4.75	%		-		Semi annual		2007		89,288		93,633		Local
PRIVATE PLACEMENT		B		9,000		THUSD		8.06	%		-		Semi annual		2008		9,000		18,000		Foreign
Total Long Term																	272,253		297,978

37

NOTE 17- PROVISIONS AND WRITE-OFFS

Short-term Provisions

	2007		2006
	THUS$		THUS$
Related to the Personnel:
Vacations		5,061		4,025
Gratifications		951		700
Sundry compensations		471		385
Incentive bonds to the personnel		2,851		2,181
Other benefits		2,500		446
Other Provisions:
Participation of the Board		732		992
Consultancies and services		1,833		649
Major repairs and plant shutdowns		684		580
Imports and exports expenses		1,981		1,038
Commissions		1,754		1,609
Goods and services receivable		2,643		1,607
Contingent liabilities		1,167		1,335
Other Taxes		6,812		3,822
Other Provisions		2,103		625
TOTAL		31,543		19,994
Long-term Provisions
		2007		2006
		THUS$		THUS$
Judicial deposit provision		-		422
Proforca provision (*)		1,123		1,000
Antiquity Bonds provision		258		-
Severance Payment Provision		280		-
TOTAL		1,661		1,422

Provisions presented net from assets that originate them:

	2007		2006
	THUS$		THUS$
Provision for irretrievable debtors		6,812		6,153
Provision for inventory		3,823		2,475
Provision for fix assets		14,435		13,165

(*) Estimated cost of having to reforest 7,500 hectares that must be delivered to CVG Proforca C.A. by the end of the actual usufruct contract that Masisa S.A. has with that company, which ends in the year 2027.

38

NOTE 18- SEVERANCE PAYMENT

Severance payments are as follows:

	2007			2006
	THUS$			THUS$
Balances as of January 1st		280			21
Provision for the period		238			-
Payments for the period		(238	)		(21	)
Balances as of March 31		280			-

39

NOTE 19- OTHER LONG TERM LIABILITIES

Balance as of March31^th is set forth in detail (THUS$):

	Expire						Values
	2008		2009		2010		2007		2006
					(THUSD)
ICMS Tax payable on long term		4,433		4,214		4,677		13,324		13,747
Unrealized profit cover operations of existing entries		4,471		-		-		4,471		6,484
Swap Currency market value currencies		1,740		-		-		1,740		1,994
TOTALS		10,644		4,214		4,677		19,535		22,225

40

NOTE 20- MINORITY INTEREST

The breakdown of the minority interest recorded by the Company, both in liabilities and net income is as follows:

	Liabilities				Net income for the period
	2007		2006		2007			2006
	THUS$		THUS$		THUS$			THUS$
Forestal Tornagaleones S.A,		6,983		6,536		( 12	)		( 27	)
Forestal Argentina S,A,		1,037		939		( 9	)		-
Maderas y Sintéticos de Peru S,A		6		4		-			-
Corporación Forestal Guayamure C,A,		1,968		1,912		14			75
Invers, Internacionales Terranova S,A,		5,360		13,268		4,559			2,646
Masisa Madeiras Ltda,		8		6		-			-
Corporación Forestal de Venezuela C,A		-		-		-			-
Total		15,362		22,665		4,552			2,694

41

NOTE 21 - SHAREHOLDERS' EQUITY VARIATIONS

a) Paid capital

The subscribed and paid capital at March31, 2007 amounts to US$812,879,756 divided into 5,667,750,881 shares of no nominal value.

b) Distribution of earnings

The dividend policy established by Masisa S.A. is to distribute annually to shareholders a sum of no less than 30% and no more than 50% of the consolidated net income for each year, without the payment of interim dividends.

The following shows the dividends per share that the shareholders’ meeting agreed to during 2006, shown in dollars as of the date of payment:

Dividend		Month		Dividend		No, of third
		paid		per share		party shares
		US$
Mandatory	Year 2005 No,11		May-2006		0.001216508		5,667,750,881
Additional	Year 2005 No,11		May-2006		0.000811005		5,667,750,881

c) Other reserves comprise the following:

Forest Reserve:

The forest reserve amounts to ThUS $201,128 (ThUS$172,797 in 2006), corresponding to the difference between the plantations’ appraisal value and their respective historic cost which includes the real cost of financing. This reserve is booked net of deferred tax in accordance with Technical Bulletins 60 and 69 of the Chilean Institute of Accountants.

Other Reserves:

Other reserves arose from the conversion to US dollars of the equity of some subsidiary and associate companies that maintained or maintain their accounts in Chilean pesos, amounting to ThUS$15,340 (ThUS$16,532 in 2006), for the constitution of a legal reserve in foreign subsidiaries of ThUS$100 (ThUS$100 in 2006) and, shown deducted from Shareholders’ equity, the costs of the issue and placement of shares related to the last capital increase, THUS$ 4,516 (THUS$3,613 in 2006).

d) Own-issued shares

The following was taken into account in quantifying the number of shares in the table 21 "Acquisition and holding of own shares":

For rights to withdraw: the 2,121,766 shares of the former Masisa S.A. bought from shareholders who exercised their right to withdrawal, that was multiplied by the exchange factor of 2.56 resulting in the sum of 5,431,721 shares.

From the total shares of own emission that the company once possessed, product of the merger with old Masisa S.A., part of them were placed in new shareholders and the rest was used in a decrease of capital, according to the Law 18.046 of Anonymous Companies, as it is shown in the annexed squares of this Note. To the date, the Company does not possess any shares of own emission.

42

e)Previous Net Income for the period adjustment

During the last period, the Company detected an inventory missing which affects the amount of the Packaging Materials account which happened as a result of a parametrizing error in the tariffs used to value this materials consumption in the Company’s costs system.

This error, which has its origin mainly in the 2005 exercise, was registered against accumulated results in the company’s shareholder’s equity for an amount of ThUS$1,935.-

43

	31-03-2007
	Paid-in capital		Reserve for Capital Revaluation		Overpricing on sales of shares		Other Reserves		Reserve for future dividends		Accumulated income		Interim Dividends		Deficit during development period		Period Income
Initial Balance		812,880		0		0		219,494		51,424		73,072		0		0		29,485
Previous period income distribution		0		0		0		0		0		29,485		0		0		-29,485
Definitive dividend of previous period		0		0		0		0		0		0		0		0		0
Capital Increase with shares issue		0		0		0		0		0		0		0		0		0
Capitalization of reserves and/or profits		0		0		0		0		0		0		0		0		0
Deficit accumulated during development period		0		0		0		0		0		0		0		0		0
Dividends Payment		0		0		0		-279		0		0		0		0		0
Capital effects due to merger		0		0		0		-7,163		0		0		0		0		0
Adjustment For Conversion difference		0		0		0		0		0		0		0		0		0
Forestry reserve		0		0		0		0		0		0		0		0		0
Emission and placement costs		0		0		0		0		0		0		0		0		0
Previous period income Adjustments		0		0		0		0		0		0		0		0		0
Capital reduction due to end of legal period		0		0		0		0		0		0		0		0		0
Equity capital revaluation		0		0		0		0		0		0		0		0		0
Net income for the period		0		0		0		0		0		0		0		0		3,236
Interim dividends		0		0		0		0		0		0		0		0		0
Final Balance		812,880		0		0		212,052		51,424		102,557		0		0		3,236
Actualized Balance

	31-03-2006
	Paid-in capital		Reserve for Capital Revaluation		Overpricing on sales of shares		Other Reserves		Reserve for future dividends		Accumulated income		Interim Dividends		Deficit during development period		Period Income
Initial Balance		769,834		0		0		188,477		51,424		60,129		0		0		26,369
Previous period income distribution		0		0		0		0		0		26,369		0		0		-26,369
Definitive dividend of previous period		0		0		0		0		0		0		0		0		0
Capital Increase with shares issue		44,012		0		0		0		0		0		0		0		0
Capitalization of reserves and/or profits		0		0		0		0		0		0		0		0		0
Deficit accumulated during development period		0		0		0		0		0		0		0		0		0
Dividends Payment		0		0		0		-497		0		0		0		0		0
Forestry reserve		0		0		0		-2,164		0		0		0		0		0
Adjustment For Conversion difference		0		0		0		0		0		0		0		0		0
Capital effects due to merger		0		0		0		0		0		0		0		0		0
Emission and placement costs		0		0		0		0		0		0		0		0		0
Previous period income Adjustments		0		0		0		0		0		-1,935		0		0		0
Capital reduction due to end of legal period		0		0		0		0		0		0		0		0		0
Equity capital revaluation		0		0		0		0		0		0		0		0		0
Net income for the period		0		0		0		0		0		0		0		0		1,167
Interim dividends		0		0		0		0		0		0		0		0		0
Final Balance		813,846		0		0		185,816		51,424		84,563		0		0		1,167
Actualized Balance		813,846		0		0		185,816		51,424		84,563		0		0		1,167

44

a)   Numbers of shares

Series	Numbers shares subscribed		Numbers paid shares		Outstanding shares
Unique		5,667,750,881.00		5,667,750,881.00		5,667,750,881.00

b)   Capital (Amount THUS$)

Series	Subscribed Capital		Paid Capital
Unique		812,880		812,880

c)   Acquisition and ownership of company shares

Share repurchase reason	Share repurchase date		N° of Shares		Share repurchase
					Series		Amount
Merger		01/07/2003		87,871,054		Unique		16,828
Withdrawal right		26/12/2003		13,538,394		Unique		1,550
Withdrawal right old Terranova S.A.		27/05/2005		12,647,263		Unique		3,202
Withdrawal right old Masisa S.A.		27/05/2005		5,431,721		Unique		1,379

d) Disposals or reductions in own share portfolio

Reason	Date		Portfolio decrease
			N° of Shares		Amount
Capital Decrease		31-10-2004		87,871,054		16,828
Capital Decrease		26-12-2004		13,538,394		1,550
Preferent Offer		12-12-2005		10,806,939		2,738
Preferent Offer		06-01-2006		3,459,841		877
Capital Decrease		27-05-2006		3,812,204		966

45

NOTE 22 - OTHER NON OPERATING INCOME AND EXPENSES

Other income and non-operating income as of March31^th, 2007 and 2006 is as follows:

Other non-operating income	2007		2006
	THUS$		THUS$
Gain on sale of goods & services		114		242
Others		193		56
Total		307		298

Other non-operating expenses:

	2007 THUS$		2006 THUS$
Depreciation and Amortization		107		203
Severance and sawmill reparation (1)		2,268		1,098
Closure Charleston production plant (2)		1,851		-
Forestry fire provisions (3)		2,136		695
Donations		56		73
Others		1,325		1,113
Total		7,743		3,182

(1)   In Venezuela it was accorded with Proforca the reparation and refund of a sawmill that was being rented and the wood supply contract was ended. This contract ending meant a compensation payment of THUS$1,096 and reparation expenses on the sawmill for THUS$3,078 that are stated in Other expenses outside the operation in the Income Statement.

(2)   In February 2007, the shut down of the MDF Moulding plant at Charleston was materialized. This decision implied associated losses regarding severance payments, write offs associated to raw materials and other expenses directly related to the closing of the facilities.

(3)   In January 2007, a forest fire burned down a total of 1,171 has. of standing forests in Chile, which implied the acknowledgement of an estimated loss to the company.

46

NOTE 23 - PRICE LEVEL

ASSETS (DEBITS) / CREDITS	READJUSTMENT INDEX		31-03-2007		31-03-2006
INVENTORIES		-
FIXED ASSET		IPC		231		0
INVESTMENT IN RELATED COMPANIES		IPC		152		165
OTHER NON MONETARY ASSETS		IPC		0		0
EXPENSES AND COSTS ACCOUNT		-		0
TOTAL (POSITIONS) PAYMENTS		-		383		165
LIABILITIES (DEBITS) CREDITS
EQUITY		IPC		-272		0
NON MONETTARY LIABILITIES		-
INCOME ACCOUNT		-
TOTAL (DEBITS) CREDITS		-		-272		0
(LOSS) PROFIT FROM PRICE LEVEL				111		165

47

NOTE 24: Exchange Differences - Foreign Currency

The breakdown of all foreign currency accounts is as follows:

Account			Amount
Assets (Debits) / Credit	Currency		31-03-2007		31-03-2006
Cash		Argentinean Peso		-39		11
Cash		Chilean Peso		-216		-6,635
Cash		Mexican Peso		-61		-63
Cash		Brazilian Real		94		-44
Cash		Bolivars		-39		-3
Cash		Other Currencies		-34		-322
Time deposits		Other Currencies		25		0
Time deposits		Chilean Peso		0		717
Time deposits		Brazilian Real		351		992
Marketable securities		Chilean Peso		36		0
Marketable securities		Other Currencies		36		0
Accounts receivable		Argentinean Peso		-41		-1
Accounts receivable		Chilean Peso		-359		-95
Accounts receivable		Mexican Peso		-270		22
Accounts receivable		Brazilian Real		843		1,265
Accounts receivable		Bolivars		-10		0
Accounts receivable		Other Currencies		69		291
Notes receivable		Chilean Peso		-254		-1,219
Notes receivable		Argentinean Peso		55		-8
Notes receivable		Brazilian Real		132		34
Notes receivable		Mexican Peso		-65		-367
Notes receivable		Bolivars		11		69
Sundry debtors		Chilean Peso		-18		15
Sundry debtors		Bolivars		7		0
Sundry debtors		Argentinean Peso		-11		-1
Sundry debtors		Mexican Peso		-17		-12
Sundry debtors		Other Currencies		36		-21
Sundry debtors		Brazilian Real		131		13
Inventories		Mexican Peso		0		-1
Inventories		Brazilian Real		0		-186
Inventories		Other Currencies		3		0
Recoverable taxes		Argentinean Peso		-25		-92
Recoverable taxes		Chilean Peso		-284		-377
Recoverable taxes		Mexican Peso		-26		-250
Recoverable taxes		Brazilian Real		316		604
Recoverable taxes		Bolivars		-3		0
Recoverable taxes		Other Currencies		52		-94
Prepaid expenses		Chilean Peso		18		-127
Prepaid expenses		Argentinean Peso		0		4
Prepaid expenses		Mexican Peso		-5		0
Prepaid expenses		Brazilian Real		36		43
Prepaid expenses		Other Currencies		7		1
Others current assets		Chilean Peso		6		-7
Others current assets		Mexican Peso		-19		-5
Others current assets		Brazilian Real		0		13
Others current assets		Other Currencies		0		0
Long term debtors		Chilean Peso		22		-6
Long term debtors		Brazilian Real		142		175
Intangible		Brazilian Real		0		0
Others assets		Mexican Peso		-101		0
Others assets		Argentinean Peso		2		1
Others assets		Chilean Peso		-51		-277
Others assets		Brazilian Real		44		177
Others assets		Other Currencies		-5		-11
Total (Debits) Credits				521		-5,777

48

			Amount
Account	Currency		31-03-2007		31-03-2006
LIABILITIES (DEBIT)/CREDIT
Short-term financial liabilities		Chilean Peso		-7		-6
Short-term financial liabilities		Other Currencies		0		0
Short-term financial liabilities		Bolivars		-1,487		-574
Long-term financial liabilities		Chilean Peso		-6		-339
Long-term financial liabilities		Bolivars		-152		0
Obligations with the public		U.F.		1,607		8,302
Accounts payable		Argentinean Peso		-39		-3
Accounts payable		Mexican Peso		-6		19
Accounts payable		Chilean Peso		103		145
Accounts payable		Brazilian Real		-290		-441
Accounts payable		Bolivars		-1		2
Accounts payable		Euro		0		-57
Accounts payable		Other Currencies		-52		62
Notes payable		Brazilian Real		0		-3
Notes payable		Bolivars		-27		0
Sundry creditors		Argentinean Peso		0		0
Sundry creditors		Brazilian Real		-31		-6
Sundry creditors		Bolivars		0		0
Sundry creditors		Other Currencies		6		4
Provisions		Chilean Peso		176		122
Provisions		Bolivars		-6		0
Provisions		Argentinean Peso		85		11
Provisions		Brazilian Real		-154		-329
Provisions		Mexican Peso		17		-47
Provisions		Other Currencies		-28		67
Withholdings		Bolivars		3		0
Withholdings		Mexican Peso		58		79
Withholdings		Argentinean Peso		59		0
Withholdings		Brazilian Real		-460		0
Income taxes (Income tax)		Chilean Peso		9		0
Income taxes (Income tax)		Brazilian Real		1		-17
Income taxes (Income tax)		Other Currencies		0		-2
Income taxes (Taxes to be paid)		Chilean Peso		0		46
Income taxes (Taxes to be paid)		Argentinean Peso		0		76
Income taxes (Taxes to be paid)		Mexican Peso		-112		48
Income taxes (Taxes to be paid)		Other Currencies		0		1
Other current liabilities		Chilean Peso		8		-210
Other current liabilities		Brazilian Real		2		-512
Other long-term liabilities		Other Currencies		-38		0
Other current liabilities		Mexican Peso		54		0
Other current liabilities		Argentinean Peso		-124		0
Obligations with the public		U.F.		-1,055		0
Other long-term liabilities		Dollars		0		64
Other long-term liabilities		Chilean Peso		4		85
Other long-term liabilities		Mexican Peso		0		17
Other long-term liabilities		Brazilian Real		-420		-1,329
Total (debit) / credit				-2,303		5,275
(Loss) Profits from exchange difference				-1,782		-502

49

NOTE 25 - DEBT AND EQUITY ISSUANCE AND PLACEMENT EXPENSES

Bonds placement

The costs incurred in bond issues are being amortized on a straight-line basis over the term of the obligation and consist of the following items:

	2007			2006
	ThUS$			ThUS$
Stamp taxes		7,485			7,477
Placement & auction commissions		591			867
Bond auction commission		283			283
Credit rating advice		229			229
Registration & inscription fees		42			42
Legal advice		28			28
Printing costs		20			20
Other costs		413			127
Total costs		9,091			9,073
Accumulated amortization		(2,657	)		(1,353	)
Balance to be amortized		6,434			7,720

These expenses are shown in Current assets as Prepaid expenses for the short-term portion of ThUS$897 (ThUS$1,156 in 2006) and in Long-term assets as Others for the long-term portion of ThUS$5,537 (ThUS$ 6,564 in 2006).

Share placement

The expenses incurred in the issue and placement of shares consist of the following items:

	2007		2006
	ThUS$		ThUS$
Financial advice		3,027		2,860
Placement commission		352		352
Publications		641		184
Legal advice		426		149
Printing & other costs		70		68
Total costs		4,516		3,613

This amount is shown deducted from Reserves in the Shareholders’ equity.

50

NOTE 26 - CASH FLOW STATEMENT

Fecu Code 50.50.30.55 Other charges to results that do not represent cash flow are:

Detail	Country		2007 THUS$		2006 THUS$
Depletion		Argentina		169		362
Depletion		Brazil		1,091		1,853
Depletion		Chile		1,981		3,137
Depletion		Venezuela		807		903
Others				-		770
TOTAL				4,048		7,025

51

NOTE 27 DERIVATIVE CONTRACTS

The company and it subsidiaries maintain the following Swap Agreements:

a) Currency Swap Agreements:

	Receivable							Payable
	Currency		Amount		Rate			Currency		Amount		Rate
Citibank N.A.		UF		561,295		4.940	%		THUS$		18,621		7.06	%
Morgan Stanley Capital Services		UF		1,122,589		4.939	%		THUS$		37,240		7.09	%
Citibank N.A.		UF		1,000,000		4.2058	%		THUS$		33,523		5.75	%
Santander Santiago		UF		1,000,000		4.2058	%		THUS$		33,523		5.60	%
J.P. Morgan		UF		441,612		4.6948	%		THUS$		15,000		6.59	%

b)  Investment Agreement:

Receivable

Payable

Currency

Amount

Rate

Currency

Amount

Rate

Morgan Stanley Capital Services

THU$

16,000

6.20

%

MXN

183,200

11.75

%

The Company utilizes its derivative contracts in order to reduce the effects of currency fluctuation and to fix interest rates.

52

Description of the contract

Protected Value

Affected Account

Assets / Liabilities

Effect On Income

Type

Contract

Value

Maturity

Class

Buy/Sale

Name

Amount

Name

Amount

Realized

Unrealized

S

CCPE

23,277

IV-2010

Currency exchange

C

U.F. Bonds

18,621

19,125

Other long-term assets

620

-93

698

S

CCPE

46,553

IV-2010

Currency exchange

C

U.F. Bonds

37,242

38,251

Other long-term assets

856

-189

180

S

CCPE

33,523

IV-2012

Currency exchange

C

U.F. Bonds

33,523

34,074

Other long-term assets

1,234

-127

1,533

S

CCPE

33,523

IV-2012

Currency exchange

C

U.F. Bonds

33,523

34,074

Other long-term assets

1,326

-114

1,650

S

CCPE

15,000

IV-2026

Currency exchange

C

U.F. Bonds

15,000

15,047

Other long-term assets

578

-72

409

S

CI

20,000

IV-2010

Currency exchange

C

Future Flows

16,000

16,593

Other long-term liabilities

1,756

-233

-

53

NOTE 28 CONTINGENCIES AND RESTRICTIONS

The following are the contingencies and commitments outstanding at the end of the period:

a) Covenants.

All the Company’s covenants are being met at the date of these financial statements.

Masisa S.A.

- Domestic issue and placement of bonds

The issue and placement indenture for the bonds made in December 2003 by the former Masisa S.A. on the domestic market, for ThUF 2,500 at 7 years with 2 year’s grace, and for ThUF 702 at 21 years with 7 year’s grace, sets out certain obligations (today assumed by Masisa S.A.) and/or its subsidiaries that are normal in this kind of transaction, These include the following:

- Maintenance of insurance cover over the principal assets in line with industry standards;

- Provide the Bond-Holders’ Representative with quarterly and annual unconsolidated and consolidated financial statements of the issuer and its subsidiaries, subject to the standards applicable to open corporations, and copies of credit-rating agency reports;

- Maintenance to date of the accounting books of the parent and its subsidiaries;

- Carry out transactions with subsidiaries on market conditions;

- Prohibition on providing financing to any entity in the business group that is neither the issuer nor any of its subsidiary or associate companies;

- Maintain in its quarterly financial statements, effective from December 31, 2003, a debt ratio (defined as total liabilities to shareholders’ equity) of no higher than 0.9:1, measured on the figures in its unconsolidated and consolidated financial statements, as established in the respective bond issue contract.

- On August 13, 2003, Masisa S.A. (formerly Terranova S.A.) placed

bonds for ThUS$ 30,000 for 5 years with a bullet repayment, This placement commits the company to:

- Maintain the inscription in the Securities Register of the SVS continuously and uninterruptedly. Maintain insurance cover that reasonably protects the operating assets in line with normal practices for companies of the Company’s nature and business.

- Carry out transactions between related parties on market conditions.

- Maintain minimum forest reserves of 60,000 hectares of radiata pine forest planted in Chile with an average age of over 8 years.

- Maintain a ratio of debt to shareholders’ equity also known as the leverage, at a consolidated and unconsolidated level of no more than 0.85.

- On January 12, 2006, Masisa S.A. placed bonds for ThUF 2,000 at 7 year’s term with 2 year’s grace, and ThUF 2,750 at 21 years with 1 year’s grace. This placement obliges the Company to comply with the following covenants:

- Maintain the inscription in the Securities Register of the SVS continuously and uninterruptedly, Maintain insurance cover that reasonably protects the operating assets in line with normal practices for companies of the Company’s nature and business.

- Carry out transactions between related parties on market conditions.

- Maintain minimum forest reserves of 30,000 hectares of radiata pine forest planted in Chile with an average age of over 8 years

- Maintain a ratio of debt to shareholders’ equity, also known as the leverage, at a consolidated and unconsolidated level of no more than:

54

i, 0.90 times between March 31, 2006 and the maturity of the bonds.

Masisa Overseas Ltd.

The Parent company and the subsidiaries Masisa Argentina S.A. and Masisa do Brazil Ltda. have guaranteed loans granted to the subsidiary Masisa Overseas Ltd. These include compliance with certain obligations that are normal for this kind of transaction, which are set out below. The financial ratios have to be calculated on the basis of the consolidated financial statements of Masisa S.A..

- Private Placement

Resulting from private loans obtained abroad through the subsidiary Masisa Overseas Ltd,, Masisa S.A. is subject to compliance with certain obligations that are normal for this kind of transaction, including the following, as set out in the respective loan agreements: compliance with current legislation; maintenance of insurance cover; maintenance of its properties; compliance with certain financial ratios, including a maximum debt ratio (leverage) of 1:1, a consolidated net tangible equity of no less than ThUS$193,236 and a financial expense ratio of no lower than 1.5:1 (income for the period before financial expenses and taxes to financial expenses); maintenance of a 100% holding in the capital of Masisa Overseas Ltd, and 66.6% holding in Masisa Argentina S.A.; prohibition on certain transactions with related parties; extend to the bond-holders any new collateral that Masisa S.A. and/or its subsidiaries grant in favor of third parties to cover new debts or debts existing at the date of the contract, with certain exceptions including those that have to be granted in the normal course of their business to cover the payment terms for new acquisitions and those related to letters of credits, among others.

- Rabobank Syndicated Loan

The syndicated loan agreement signed on December 20, 2005 with Rabobank Curacao N,V,, West LB AG, New York branch, The Bank of Nova Scotia, Citibank N,A,, Nassau, Bahamas branch and ABN Amro Bank N,V,, commits Masisa S.A., as the guarantor, to comply with certain covenants, mainly referring to compliance with legislation, maintenance of insurance cover, maintenance of its properties, and compliance with certain financial covenants based on its consolidated financial statements, like:

Minimum board installed production capacity: 1,200,000 annual cubic meters.

Interest cover greater than 3.0

Net shareholders’ equity greater than US$ 980 million.

Net debt to equity ratio no higher than 0.9:1

Masisa Argentina S.A.

The Parent company has guaranteed loans obtained by the subsidiary Masisa Argentina S.A. These contemplate compliance with certain obligations normal in this type of transaction, as per the terms and conditions of the respective loan agreements, Those related to financial ratios should be calculated on the basis of the consolidated financial statements.

- Rabobank Nederland

The loan granted by Cooperative Centrale Raiffeisen-Boerenleenbank B,A, (Rabobank Nederland) to Masisa Argentina S.A. states that the parent and/or its subsidiaries are subject to certain obligations that are normal for this kind of transaction, including the following, as per the terms and conditions of the respective loan agreement: maintain the company’s present business and legal existence; maintain the fixed assets necessary for the company’s ordinary business; comply with applicable laws and regulations; send financial information on the company without delay; contract and maintain insurance to suitably cover the risks common to the industry; maintain a debt level no higher than 0.9:1; maintain a financial expense coverage ratio of no less than 3:1; maintain a consolidated equity of no less than US$345 million; prohibition on charging assets, except on the terms set out in the agreement; carry out transactions with related parties at market prices; prohibition on providing financing to any entity in the business group that is neither the borrower nor any of its subsidiary or associate companies.

55

- Banco de Crédito e Inversiones

The loan granted by Banco de Crédito e Inversiones to Masisa Argentina S.A. states that the parent and/or its subsidiaries are subject to certain obligations that are normal for this kind of transaction, including the following, as per the terms and conditions of the respective loan agreement: maintain the company’s present business and legal existence; send financial information on the company without delay; contract and maintain insurance to suitably cover the risks common to the industry; maintain a debt level no higher than 0.9:1; maintain a financial expense coverage ratio of no less than 3:1; maintain a consolidated equity of no less than US$345 million; prohibition on charging assets, except on the terms set out in the agreement.

Inversiones Internacionales Terranova S.A.

- The loan agreements signed by Inversiones Internacionales Terranova S.A. with the German bank WestLB commit Masisa S.A., as guarantor, to comply with certain obligations referring mainly to not significantly changing its business, providing financial information periodically, maintaining current its obligation to third parties, obtaining the prior consent of those banks for disposing of, transferring or selling a substantial part of its assets or granting security over them.

Fibranova C.A., Andinos C.A. and Masisa Madeiras Ltda.

- The syndicated loan agreement signed on February 2, 2001 by the foreign subsidiaries Andinos C.A., Fibranova C.A. and Masisa Madeiras Ltda. (formerly Terranova Brazil Ltda.) with the Chilean banks Banco Santander-Chile, Banco del Estado and Banco BBVA, for a total sum of ThUS$ 85,000, provides that Masisa S.A., as guarantor, must comply with certain obligations referring mainly to not significantly changing its business, providing financial information periodically, maintaining current its obligation to third parties, obtaining the prior consent of those banks for disposing of, transferring or selling a substantial part of its assets or granting security over them, The loan agreement also commits the Company to compliance with certain financial ratios, on the basis of its consolidated financial statements:

Debt ratio, maximum: 0.85:1

Maximum financial debt to cash generation ratio: 5.5:1 (2004); 5.0:1 (2005); 4.5:1 (2006); 4.0:1 (2007),

Minimum cash generation to financial expense ratio: 2.5:1 (2004); 2.65:1 (2005); 3.0:1 (2006); 3.25:1 (2007)

Minimum tangible net equity: ThUS$ 700,000

Fibranova C.A. and Andinos C.A.

- The loan agreement signed on February 26, 2004 by the foreign subsidiaries Fibranova C.A. and Andinos C.A., of Venezuela, with the German bank KfW, commits Masisa S.A., as guarantor, to comply with certain obligations referring mainly to not significantly changing its business, maintaining indirect control over both debtors, providing financial information periodically, maintaining current its obligation to third parties, obtaining the prior consent of those banks for disposing of, transferring or selling a substantial part of its assets or granting security over them.

56

Fibranova C.A.

The syndicated loan agreement signed on April 15, 2002 by the foreign subsidiary Fibranova C.A., in Venezuela, with the Chilean banks Banco Santander-Chile, Banco de Crédito e Inversiones, Banco Corpbanca and Banco Security commits Masisa S.A., as guarantor, to comply with certain obligations referring mainly to not significantly changing its business, providing financial information periodically, maintaining current its obligation to third parties, obtaining the prior consent of those banks for disposing of, transferring or selling a substantial part of its assets or granting security over them, The loan agreement also commits the Company to comply with certain financial ratios, on the basis of its consolidated financial statements:

Debt ratio, maximum: 0.85:1

Maximum financial debt to cash generation ratio: 5.5:1 (2004); 5.0:1 (2005); 4.5:1 (2006); 4.0:1 (2007).

Minimum cash generation to financial expense ratio: 2.5:1 (2004); 2.65:1 (2005); 3.0:1 (2006); 3.25:1 (2007)

Minimum tangible net equity: ThUS$ 700,000

Forestal Argentina S.A.

- On September 2, 2005, Masisa S.A. became a joint and several guarantor in favor of Banco Cooperative Centrale Raiffeisen-Boerenleenbank B,A, (Rabobank Nederland) for the loan granted by that bank the same year to the subsidiary Forestal Argentina S.A. This loan was to be used to restructure its financial debt. The loan agreement states that Masisa S.A., as guarantor, should comply with certain obligations normal to this type of transaction, The loan agreement also obliges Masisa, S.A. to comply with the certain financial ratios, on the basis of its consolidated financial statements:

Minimum installed board production capacity: 1,200,000 annual cubic meters

Maximum debt level: 0.9:1

Minimum interest coverage: 3:1

Minimum forestry asset coverage: 1.5:1

Minimum net tangible equity: ThUS$ 700,000

Forestal Tornagaleones S.A.

- On October 15, 1998, Forestal Tornagaleones S.A. signed a loan agreement with Rabobank Investments Chile S.A. and granted security in the form of a mortgage over land and plantations for the term of the loan. The loan was renewed on August 9, 2005. The value of this goods by the close of this financial statements amounts to THUS$ 35,180 divided into Plantations, THUS$28,497 and Lands THUS$ 6,683.

b) Deferred customs duties

At March 31, 2007, the Company owed deferred customs duties of ThUS$11 (ThUS$60 in 2006),

Expiry	ThUS$
2007		11
Total		11

c) Insurance

As of March31, 2007, the main insurance taken out by the Parent Company and its subsidiaries is as follows:

57

- Insurance for plantations of local subsidiaries THUS$407,519

- Insurance on physical assets and inventories from local subsidiaries amount to approximately THUS$199,626 and THUS$ 130,974 for fixed costs in case of shutdown of the plants.

- Corporate civil liability insurance, including coverage for personal accidents and third-party damages for THUS$10,000.

- With regard to its subsidiaries in Brazil, insurance for plantations amount to THUS$102,289; for physical assets and inventories to THUS$188,000 and to THUS$83,566 for fixed costs in case of shutdown of plants.

- The companies in Venezuela have taken out insurance for physical assets and inventories amounting to THUS$235,204 and THUS$46,138 for fixed costs in case of shutdown of plants, There is no insurance for plantations, since there is no market for this kind of insurance in Venezuela.

- The subsidiaries in Mexico have taken out insurance for physical assets and inventories amounting to THUS$39,498 and THUS$19,362 for fixed costs in case of shutdown of plants.

- The companies in Argentina have taken out the following insurance: for forest plantations THUS$54,228, for physical assets and inventories THUS$180,677 and THUS$39,322 for fixed costs in case of shutdown of plants.

d)Other Contingencies

Through Resolution No,203, dated August 29^th, 2003, the Internal Revenue Service notified the company that it is not applicable to record in Chile (and for the purpose of establishing its first-category taxable income), the income of some of its foreign agencies. According to the background information that the company has, Resolution No, 203 would have an effect on the losses recorded by the company which amount to US$ 39.2 million as a result of deferred taxes, recoverable taxes and tax losses already used.

The Company refuted Resolution No, 203 pursuant to the procedure established in articles 123 and following of the Tax Code, Based on the background information that the company has, as well as the opinion of its legal advisors and the administrative law of the “Servicio de Impuestos Internos” (Internal Revenue Service) which has a bearing on the judgment of Resolution No, 203, it seems unlikely that the final judgment of the claim process will have an unfavorable effect on deferred taxes, recoverable taxes and tax losses for US$ 39.2 million recorded by the company.

e)Bargain and Sale of shares and Shareholders Agreement

-   By the incorporation of Oxinova C.A. an affiliate in the Republic of Venezuela, the affiliate Inversiones Internacionales Terranova S.A. signed a shareholders agreement with the company Oxiquim S.A., mainly for the purpose of restricting the sale of shares, in order not to establish a pledge, or levy any share that is of its property and to maintain the control of Fibranova C.A., whether through Masisa S.A. or directly.

-   Chilean affiliate Inversiones Internacionales Terranova S.A. signed on the 23rd of may, 2002, a shareholders agreement with Corporación Venezolana de Guayana (CVG) a self governing state owned organization in order to regulate the principles, the rights and obligations of the Parties in and Venezuelan corporation that they would incorporate for the construction, administration and operation of a fluvial port in the northern riverbank of Orinoco River, Macapaima, Venezuela.

58

To the closing date of these financial statements, due to diverse considerations, the previously mentioned corporation has not yet been incorporated.

f)Contract for Wood Purchasing.

As of the end of the period, the affiliate company Terranova de Venezuela S.A.(“TDVSA”) maintains a contract for the purchase of Caribbean Pine wood which was signed on May, 1997. The plantation that is the object of the contract covers a total of 59,000 hectares in the State of Monagas in Venezuela, which is made up of two sites of 30,000 and 29,000 hectares, The exploitation term for such man made plantations is 30 years and the resources that are not used shall be returned to CVG Proforca C.A.

The signed contract takes the following conditions into account:

1.   The land sites where the plantations are located are the property of the company CVG Proforca C.A., and they are not part of the sale.

2.   The processing of the documents and obtaining future permits that may be required and its costs, shall be on the account for TDVSSA.

3.   CVG,Proforca C.A. shall compensate TDVSA in the event that the latter should incur in expenses and costs due to the non compliance of CVG Proforca C.A. as owner, holder and operator of the mentioned goods.

4.   TDVSA is bound to comply with environmental protection regulations in order to prevent fires, industrial hygiene and safety, current lumbering and maintenance of feasibility and infrastructure, as well as how to carry out the risk analysis in order to prevent fires and the creation of an operational plan for fighting fires.

5.   TDVSA shall have the required insurance policies in order to cover third party expenditures, while the beneficiary shall be CVG Proforca C.A.

On March 20, 2006, Terranova Venezuela agreed to provide THUS$740 to CVG Proforca in order to promote efforts for preventing fires that could affect the plantations.

g) Rental contract of Sawmill Uverito

In May 1997, the affiliate company Terranova de Venezuela S.A.(“TDVSA”) signed a contract for the rental of a sawmill with CVG Proforca C.A., with the single payment of THUS$ 10,000 during a 15 year term as of 1997.

On March 20, 2006, Terranova Venezuela and CVG Proforca agreed the following:

-Terminate in advance the rent contract of Uverito sawmill, without having CVG Proforca to do any payment for the termination of the contract.

-Terranova Venezuela commits to do a series of tasks described in a chronogram which is part of the agreement, with the purpose of placing the sawmill in similar operational conditions to the valid ones at the moment of its reception in 1997.

-At the end the reconditioning, Terranova Venezuela will have to consign a guarantee for the functioning of the equipments for 4 months, which will not include the bad use nor out ware of the equipments, nor implicate the un fulfillment of the reconditioning tasks by Terranova de Venezuela.

59

h)Beneficial interest contract of 30,000 hectares

In May 1997, the affiliate company Terranova de Venezuela S.A.(“TDVSA”) signed a contract with CVG Proforca C.A. a contract whereby the latter company assigns the rights of use of a site of land of 30,000 hectares, which corresponds to one of the two sites that the contract for the purchase of wood mentions.

This contract shall be in force for 30 years, nevertheless, the rights of use shall cease after TDVSA has exploited all forestry resources as of the twentieth year, In consideration, TDVSA shall transfer to CVG Proforca C.A. the property over such forestry resources that have been planted on their account, which shall have less than 10 years, in a surface that is not less than 7,500 hectares and no less than 400 plants by hectare of Caribbean Pine.

TDVSA committed itself among other things, to the following:

-   To reforest on its account for its benefit (except for the previously mentioned consideration to CVG Proforca C.A.) the parts that have been planted by TDVSA during the first twenty years this contract is valid.

-   To establish a bond for the true compliance of obligations assumed under this contract in favor of CVG Proforca C.A. for the total amount of THUS$ 300.

60

	Debtor						Compromised Assets				Outstanding amount as of the end of the period				Liberation of guarantees
Institution	Name		Relation		Guaranty Type		Type		Account value		31-03-2007		31-03-2006		31-03-2007		Assets	31-03-2008		Assets	31-03-2009		Assets
BANCO BBVA		ANDINOS C.A.		Subsidiary		Suretyship		Net Worth		764		764		894		619			144			0
BANCO DEL ESTADO DE CHILE		ANDINOS C.A.		Subsidiary		Suretyship		Net Worth		1,469		1,469		1,719		1,191			278			0
BANCO SANTANDER		ANDINOS C.A.		Subsidiary		Suretyship		Net Worth		2,761		2,761		3,232		2,239			522			0
ABN AMRO BANK		ANDINOS C.A.		Subsidiary		Suretyship		Net Worth		0		0		1,396
BANQUE EUROPEENNE POUR AM		ANDINOS C.A.		Subsidiary		Suretyship		Net Worth						0
CITIBANK VENEZUELA		ANDINOS C.A.		Subsidiary		Suretyship		Net Worth		2,192		2,192		0		2,192			0			0
CORPBANCA VENEZUELA		ANDINOS C.A.		Subsidiary		Suretyship		Net Worth						1,427
WESTDEUTSCHE LANDESBANK		ANDINOS C.A.		Subsidiary		Suretyship		Net Worth		0		0		3,210		1,059
KREDITANSTALT FUR WIEDERAUFBAU		ANDINOS C.A.		Subsidiary		Suretyship		Net Worth		1,140		1,140		1,520		380			380			380
RABOBANK NEDERLAND		FORESTAL ARGENTINA S.A.		Subsidiary		Suretyship		Net Worth		5,220		5,220		5,514		360			540			360
ABN AMRO BANK		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth						5,659
BANCO PROVINCIAL		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		4,651		4,651				4,651
BANCO BBVA		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		2,546		2,546		2,980		2,064			482			0
BANCO CORPBANCA		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		24,340		24,340		28,309		17,343			6,997
BANCO DE CRÉDITO E INVERSIONES		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		7,931		7,931		9,207		5,431			2,500
BANCO DE VENEZUELA S.A.		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		18,884		18,884		24,294		18,884
BANCO DEL ESTADO DE CHILE		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		8,739		8,739		10,230		7,086			1,653			0
BANCO MERCANTIL		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		23,769		23,769		16,283		23,769
BANCO SANTANDER		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		3,754		3,754		4,358		2,570			1,183
BANQUE EUROPEENNE POUR AM		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth						0
SECURITY BANK		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth
BANCO SECURITY		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		3,701		3,701		4,297		2,534			1,167
CITIBANK VENEZUELA		FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		2,893		2,893				2,893			0			0

61

	Debtor					Compromised Assets				Outstanding amount as of the end of the period				Liberation of guarantees
Institution	Name	Relation		Guaranty Type		Type		Account value		31-03-2007		31-03-2006		31-03-2007		Assets	31-03-2008		Assets	31-03-2009		Assets
WESTDEUTSCHE LANDESBANK	FIBRANOVA C.A.	Subsidiary		Suretyship		Net Worth		15,385		15,385		19,403		12,308			3,077			0
BNP PARIBAS	FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		7,200		7,200		11,297		7,200
CORPBANCA VENEZUELA	FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		0		0		3,440
KREDITANSTALT FUR WIEDERAUFBAU	FIBRANOVA C.A.		Subsidiary		Suretyship		Net Worth		10,260		10,260		13,670		3,420			3,420			3,420
BANCO DE CRÉDITO E INVERSIONES	MASISA ARGENTINA S.A.		Subsidiary						9,722		9,722		12,765		2,778			2,778			2,778
RABOBANK NEDERLAND	MASISA ARGENTINA S.A.		Subsidiary		Suretyship		Net Worth		8,750		8,750		11,479		2,500			2,500			2,500
ABN AMRO BANK	MASISA OVERSEAS LIMITED		Subsidiary		Suretyship		Net Worth		11,000		11,000		11,107		0						2,200
CITIBANK N.A.	MASISA OVERSEAS LIMITED		Subsidiary		Suretyship		Net Worth		24,700		24,700		24,990								4,950
RABOBANK NEDERLAND	MASISA OVERSEAS LIMITED		Subsidiary		Suretyship		Net Worth		24,700		24,700		24,990								4,950
THE BANK OF NOVA SCOTIA	MASISA OVERSEAS LIMITED		Subsidiary		Suretyship		Net Worth		24,700		24,700		24,990								4,950
BANCO CHILE NEW YORK BRANK	MASISA OVERSEAS LIMITED		Subsidiary		Suretyship		Net Worth		0		0		0
WESTDEUTSCHE LANDESBANK	MASISA OVERSEAS LIMITED		Subsidiary		Suretyship		Net Worth		24,700		24,700		24,990								4,950
PRIVATE PLACEMENT	MASISA OVERSEAS LIMITED		Subsidiary		Suretyship		Net Worth		18,000		18,000		27,822		9,000			9,000			0
COMERICA BANK	MASISA OVERSEAS LIMITED		Subsidiary		Suretyship		Net Worth		0		0		0
BANCO BBVA	MASISA MADEIRAS LIMITADA		Subsidiary		Suretyship		Net Worth		289		289		483		193			96			0
BANCO DEL ESTADO DE CHILE	MASISA MADEIRAS LIMITADA		Subsidiary		Suretyship		Net Worth		555		555		930		370			185			0
BANCO ITAU BBA	MASISA MADEIRAS LIMITADA		Subsidiary								1,460		2,060		1,460

62

	Debtor						Compromised Assets				Outstanding amount as of the end of the period				Liberation of guarantees
Institution	Name		Relation		Guaranty Type		Type		Account value		31-03-2007		31-03-2006		31-03-2007		Assets	31-03-2008		Assets	31-03-2009		Assets
BANCO SANTANDER		MASISA MADEIRAS LIMITADA		Subsidiary		Suretyship		Net Worth		1,044		1,044		1,748		696			348			0
WESTDEUTSCHE LANDESBANK		INVERSIONES INTERNACIONALES TERRANOVA		Subsidiary		Suretyship		Net Worth		4,354		4,354		6,174		4,354
KREDITANSTALT FUR WIEDERAUFBAU		INVERSIONES INTERNACIONALES TERRANOVA		Subsidiary		Suretyship		Net Worth						16,903
BANCO BBVA		TERRANOVA VENEZUELA S.A.		Subsidiary		Suretyship		Net Worth						1,393
BANCO DEL DESARROLLO		TERRANOVA VENEZUELA S.A.		Subsidiary		Suretyship		Net Worth						0
CITIBANK VENEZUELA		TERRANOVA VENEZUELA S.A.		Subsidiary		Suretyship		Net Worth		3,702		3,702				3,702			0			0
WESTDEUTSCHE LANDESBANK		TERRANOVA VENEZUELA S.A.		Subsidiary		Suretyship		Net Worth		0		0		12,078		8,367			1,915			0
BANQUE EUROPEENNE POUR AM		TERRANOVA VENEZUELA S.A.		Subsidiary		Suretyship		Net Worth						0
CORPBANCA VENEZUELA		TERRANOVA VENEZUELA S.A.		Subsidiary		Suretyship		Net Worth						349
BANCO DE CHILE		OXINOVA C.A.		Joined		Suretyship		Net Worth		4,900		4,900		4,900		4,900						0
HSBC		MASISA USA INC		Subsidiary		Suretyship		Net Worth						2,519
-		-		-		-		-		308,715		310,175		385,009		156,513			39,165			31,438

63

NOTE 29: GUARANTEES RECEIVED FROM THIRD PARTIES

At the closing of these financial statements and to guarantee the payment and fulfillment of client obligations related to business operations, guarantees for THU$7,585 (THUS$3,185 in 2006) have been received, consisting of pledges, mortgages, endorsement of loan insurance policies, special commands, guarantees and joint debts.

64

NOTE 30 - NATIONAL AND FOREIGN CURRENCY

a)  Assets

The breakdown of all foreign currency accounts is as follows:

		Amount
Account	Currency	31-03-2007	31-03-2006
Cash	Chilean Peso	416	803
Cash	Dollars	2,642	3,523
Cash	Argentinean Peso	1,190	268
Cash	Brazilian Real	1,109	3,289
Cash	Mexican Peso	970	3,423
Cash	Bolivars	1,084	1,960
Cash	Other Currencies	306	639
Cash	Euro	7	22
Time deposit	Dollars	22,720	84,991
Time deposit	Euro	89
Time deposit	Bolivars	101	482
Time deposit	Brazilian Real
Time deposit	Other Currencies	7,958
Marketable securities	Chilean Peso	1,192
Marketable securities	Other Currencies	11,057	10,856
Accounts receivable	Chilean Peso	27,553	27,827
Accounts receivable	Euro	544	179
Accounts receivable	Dollars	43,173	39,412
Accounts receivable	Argentinean Peso	5,096	2,436
Accounts receivable	Brazilian Real	27,350	22,278
Accounts receivable	Bolivars	13,371	8,041
Accounts receivable	Other Currencies	3,583	4,073
Accounts receivable	Mexican Peso	15,861	16,996
Notes receivable	Chilean Peso	2,559	3,437
Notes receivable	Dollars	2,001	2,696
Notes receivable	Argentinean Peso	3,387	2,718
Notes receivable	Other Currencies	2	2
Notes receivable	Brazilian Real	0	1,376
Notes receivable	Mexican Peso	1,296	2,461
Sundry debtors	Chilean Peso	6,631	5,661
Sundry debtors	Dollars	4,922	5,430
Sundry debtors	Bolivars	7,352	2,471
Sundry debtors	Euro	51	172
Sundry debtors	Argentinean Peso	1,131	53
Sundry debtors	Brazilian Real	3,477	1,945
Sundry debtors	Mexican Peso	957	1,722
Sundry debtors	Other Currencies	2,133	1,494

65

		Amount
Account	Currency	31-03-2007	31-03-2006
Notes receivable from related companies	Dollars	6,964	6,096
Inventories	Dollars	198,637	207,189
Recoverable taxes	Chilean Peso	31,520	21,539
Recoverable taxes	Dollars	2,353	5,881
Recoverable taxes	Argentinean Peso	4,512	5,397
Recoverable taxes	Brazilian Real	6,671	11,310
Recoverable taxes	Mexican Peso	1,869	1,508
Recoverable taxes	Bolivars	11,581	13,479
Recoverable taxes	Other Currencies	3,197	1,579
Prepaid expenses	Chilean Peso	3,789	1,088
Prepaid expenses	Dollars	1,090	3,643
Prepaid expenses	Argentinean Peso	224	298
Prepaid expenses	Bolivars	2,136	1,010
Prepaid expenses	Brazilian Real	1,115	1,077
Prepaid expenses	Mexican Peso	206	145
Prepaid expenses	U.F.	0	1,976
Prepaid expenses	Other Currencies	482	604
Deferred taxes	Dollars	5,316	2,430
Others currents assets	Other Currencies
Others currents assets	Chilean Peso	2,259	4,923
Others currents assets	Dollars	26	1,226
Others currents assets	Argentinean Peso	11
Others currents assets	Mexican Peso	462	32
Others currents assets	U.F.	13	159
--------
Fixed Assets
Fixed Assets	Dollars	1,547,274	1,465,112

66

		Amount
Account	Currency	31-03-2007	31-03-2006
Others assets
Investments in related companies	Dollars	4,385	4,212
Investments in other companies	Chilean Peso	7	7
Investments in other companies	Dollars	154	158
Investments in other companies	Other Currencies	40	40
Goodwill	Dollars	1,144	1,228
Negative goodwill	Dollars	-57,102	-61,876
Long term receivables	Dollars	2,051	2,469
Long term receivables	Chilean Peso	0	976
Long term receivables	Other Currencies	194	100
Long term receivables	Brazilian Real	3,370	1,974
Notes and accounts receivable from related companies	Brazilian Real
Intangible	Dollars	1,126	121
Amortization	Dollars	-214	-21
Others	Chilean Peso	427	292
Others	U.F.	10,002	12,909
Others	Argentinean Peso	71	45
Others	Dollars	15,685	15,574
Others	Brazilian Real	1,221	1,056
Others	Bolivars	238	72
Others	Mexican Peso	126	75
Total Assets
	Chilean Peso	76,353	66,553
	Dollars	1,804,347	1,789,494
	Argentinean Peso	15,622	11,215
	Brazilian Real	44,313	44,305
	Mexican Peso	21,747	26,362
	Bolivars	35,863	27,515
	Other Currencies	28,965	19,546
	Euro	691	373
	U.F.	10,002	14,885

67

b)  Short Term Liabilities

			Until 90 days										90 days to 1 year
			31-03-2007					31-03-2006					31-03-2007					31-03-2006
Account	Currency		Amount		Annual Rate			Amount		Annual Rate			Amount		Annual Rate			Amount		Annual Rate
Obligations to banks and financial institutions short/term		Chilean peso
Obligations to banks and financial institutions short/term		Dollar												12,384		5.00	%		5,603		4.63	%
Obligations to banks and financial institutions short/term		Bolivars												59,185		10.0	%		45,809		14.50	%
Short/term portion of long/term liabilities to banks and financial institutions		U.F.
Short/term portion of long/term liabilities to banks and financial institutions		Dollar		5,103		5.00	%		1,985		3.83	%		58,394		10.7	%		49,133		3.83	%
Short/term portion of long/term liabilities to banks and financial institutions		Bolivars																	3,933		17.25	%
Obligations with the public short/term portion		U.F.		15,602		5.00	%							10,861		5.00	%
Obligations with the public short/term portion		Dollar		432		5.00	%							9,548		8.00	%		32,261		8.05	%
Long/term liabilities due within one year		Dollar
Dividends payable		Chilean peso							561
Dividends payable		Dollar		467
Accounts payable		U.F.		94
Accounts payable		Chilean peso		10,201					16,377
Accounts payable		Dollar		32,948					23,359
Accounts payable		Argentinean peso		3,020					2,492
Accounts payable		Brazilian Real		9,075					7,159
Accounts payable		Bolivars		457					1,930
Accounts payable		Mexican peso		1,490					3,866
Accounts payable		EURO		361
Accounts payable		Other Currencies		7,411					2,880
Notes payable		Chilean peso							5
Notes payable		Argentinean peso		831					817
Sundry creditors		Chilean peso		23					36
Sundry creditors		Dollar		2,169					1,822
Sundry creditors		Argentinean peso							75
Sundry creditors		Mexican peso		3					11
Sundry creditors		Bolivars		320					6
Sundry creditors		EURO		467
Sundry creditors		Other Currencies		50					188

68

			Until 90 days						90 days to 1 year
			31-03-2007			31-03-2006			31-03-2007			31-03-2006
Account	Currency		Amount		Annual Rate	Amount		Annual Rate	Amount		Annual Rate	Amount		Annual Rate
Notes and accounts payable to related companies		Dollar		9,524			3,566
Provisions		Chilean peso		4,334			3,418
Provisions		Dollar		8,473			4,652			1,068			1,068
Provisions		Argentinean peso		7,586			4,748
Provisions		Bolivars		4,054			2,018
Provisions		Brazilian Real		5,179			3,680
Provisions		Mexican peso		766			330
Provisions		Other Currencies		83			80
Withholdings		Chilean peso		1,482			622
Withholdings		Dollar		880			704			59			67
Withholdings		Bolivars		1,383			1,619
Withholdings		Argentinean peso		1,108			770
Withholdings		Brazilian Real		6,259			12,427
Withholdings		Mexican peso		2,721			1,768
Withholdings		Other Currencies		572			369
Income tax		Chilean peso		258			1,579
Income tax		Dollar		260			2,046						233
Income tax		Argentinean peso		5,495						1,594			3,656
Income tax		Bolivars		992			148
Income tax		Brazilian Real		390
Income tax		Mexican peso					1,526
Income tax		Other Currencies		1,967			1,070
Income received in advance		Chilean peso		18			16
Income received in advance		Dollar
Income received in advance		Bolivars		8			518
Income received in advance		Argentinean peso					203
Income received in advance		Mexican peso					22
Income received in advance		Other Currencies
Other current liabilities		Dollar		271
Other current liabilities		Argentinean peso					405
Other current liabilities		Mexican peso

69

			Until 90 days						90 days to 1 year
			31-03-2007			31-03-2006			31-03-2007			31-03-2006
Account	Currency		Amount		Annual Rate	Amount		Annual Rate	Amount		Annual Rate	Amount		Annual Rate
TOTAL CURRENT LIABILITIES
		Chilean peso		16,316			22,614			0			0
		Dollar		60,527			38,134			81,453			88,365
		Bolivars		7,214			6,239			59,185			49,742
		U.F.		15,696			0			10,861			0
		Argentinean peso		18,040			9,510			1,594			3,656
		Brazilian Real		20,903			23,266			0			0
		Mexican peso		4,211			7,160			0			0
		EURO		828			0			0			0
		Other Currencies		10,083			4,587			0			0
		Mexican peso		769			363			0			0

70

 Long-term Liabilities as of March 31, 2007

The breakdown of all foreign currency accounts is as follows:

Account	Currency		1 to 3 year					3 to 5 year					5 to 10 year					More of 10 year
			Amount		Rate			Amount		Rate			Amount		Rate			Amount		Rate
Obligations to banks and financial institutions		Dollar		68,102		8.2	%		93,607		5.8	%		0		0			0		0
Bonds		U.F.		107,166		4.68	%		39,795		4.54	%		32,042		5.15	%		54,250		5.08	%
Bonds		Dollar		39,000		5.71	%		0		0			0		0			0		0
Sundry creditors		Dollar		67		0			0		0			0		0			0		0
Provisions		Dollar		0		0			0		0			542		0			0		0
Provisions		Bolivar		0		0			0		0			0		0			1,119		0
Deferred taxes		Dollar		35,785		0			0		0			30,338		0			0		0
Deferred taxes		Argentinean peso		1,133		0			755		0			1,889		0			1,889		0
Deferred taxes		Mexican peso		402		0			0		0			0		0			0		0
Deferred taxes		Bolivar		1,542		0			0		0			0		0			0		0
Deferred taxes		Brazilian Real		3,754		0			0		0			0		0			0		0
Other long-term liabilities		Dollar		6,211		0			0		0			0		0			0		0
Other long-term liabilities		Brazilian Real		13,324		0			0		0			0		0			0		0
Total long-term liabilities
		Dollar		149,165					93,607					30,880					0
		U.F.		107,166					39,795					32,042					54,250
		Bolivars		1,542					0					0					1,119
		Argentinean peso		1,133					755					1,889					1,889
		Mexican peso		402					0					0					0
		Brazilian Real		17,078					0					0					0

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Past period 03-31-2006

The breakdown of all foreign currency accounts is as follows:

Account	Currency		1 to 3 year					3 to 5 year					5 to 10 year					More of 10 year
			Amount		Rate			Amount		Rate			Amount		Rate			Amount		Rate
Obligations to banks and financial institutions		Dollar		69,709		3.83	%		27,739		3.83	%		119,060		3.83	%		0
Obligations to banks and financial institutions		Bolivar		2,360		17.25	%		754		17.25	%		0		0			0		0
Bonds		U.F.		55,115		5.24	%		68,952		5.24	%		59,048		5.24	%		66,863		5.24	%
Bonds		Dollar		48,000		5.00	%		0		0			0		0			0		0
Sundry creditors		Chilean pesos		27					0					0					0
Sundry creditors		Dollar		200					0					0					0
Provisions		Chilean pesos		0					0					0					0
Provisions		Dollar		0					1,422					0					0
Provisions		Brazilian Real		0					0					0					0
Deferred taxes		Dollar		686					731					44,106					0
Other long-term liabilities		Chilean pesos		0					0					0					0
Other long-term liabilities		Brazilian Real		13,065					682					0					0
Other long-term liabilities		Dollar		8,478					0					0					0
Total long-term liabilities
		Dollar		127,073					29,892					163,166					0
		Bolivar		2,360					754					0					0
		U.F.		55,115					68,952					59,048					66,863
		Chilean pesos		27					0					0					0
		Brazilian Real		13,065					682					0					0

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NOTE 31: SANCTIONS

Neither the Company nor its directors or managers have received sanctions during the period covered by these financial statements from the Superintendence of Securities and Insurance or other administrative authorities.

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NOTE 32: SUBSEQUENT EVENTS

Between March 31 and the emission date of the current financial statements, we had no knowledge of any subsequent events.

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NOTE 33 - ENVIRONMENTAL

The company’s environmental management is focused on the following 2 aspects:

1. - Legal Aspect:

This aspect gathers all that relates to permit applications, authorizations, and environment related certifications, as well as the regularization of any pending aspects.

2. - Environmental management and Eco-efficiency:

Under the concept that each process can be improved through responsible and adequate environmental management, the company is concerned to evaluate and develop projects which will allow cost savings, reduction of losses in processes in order to achieve an efficient use of our resources, and finally, the implementation of the Environmental Management Certificate System under international standards.

The company is committed and has made investments in operative areas related to the environmental management system, the invested amounts expressed in THUS$, in the company and its subsidiaries are:

Company	Budget		Invested		Invested
	Aggregate 2007		Aggregate 2007		2007 Period
	THUS$		THUS$		THUS$
Masisa S.A. Chile		4,155		6,303		2,609
Masisa Argentina		1,776		1,688		831
Masisa Brazil		2,254		1,871		327
Maderas y Sintéticos
Masisa Mexico		996		1,033		47
Forestal Argentina		90		208		53
Forestal Tornagaleones		638		907		109
Masisa Madeiras		286		138		-
Terranova Venezuela		290		3,081		1,086
Consolidated Total		10,485		15,229		5,062

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REASONED ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH31ST, 2007

(In thousands of US$)

A.   Comparative analysis of the main observed trends:

	2007		2006		2006
	Jan-Mar		Jan-Mar		Jan-Dec
Liquidity Indexes
Regular Liquidity		1.65		2.19		1.78
Acid Ratio		0.03		0.05		0.06

The outstanding assets have decreased approximately in 8.64%, which is explained by the decrease in short term financial investments due to payments related to the construction of a new productive plant in Chile.

In addition, the outstanding liabilities increased in approximately 21.24%, which is mainly due to a restructuring of the financial debt from long term to short term.

	2007			2006			2006
	Jan-Mar			Jan-Mar			Jan-Dec
Indebtedness Indexes
Indebtedness Ratio (times)		0.68			0.72			0.65
Short Term Debt/Total Debt		36.61	%		30.18	%		33.04	%
Long Term Debt/Total Debt		63.39	%		69.82	%		66.94	%
Financial Expenses Coverage (times)		1.69			1.68			2.06

The observed variation in the composition of the debt is mainly due to a restructuring of the financial debt from long term to short term.

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	2007		2006		2006
	Jan-Mar		Jan-Mar		Jan-Dec
Activity Index
1. Total Assets		2,037,903		2,000,248		2,016,334
Investments of the period
- In Fixed asset		18,795		18,130		121,843
Dispositions:
- Fixed asset sales		-		1,615		1,565
2. Inventory Rotation		0.85		0.8		3.33
3. Inventory Permanence		106.09		117.01		108.23
4. Accounts Payable Rotation		2.78		2.99		12.97
5. Accounts Payable Permanence		32.38		30.10		27.76
6. Accounts Receivable Rotation		1 .33		1.48		6.16
7. Accounts Receivable Permanence		67.86		60.65		58.41

	2007			2006			2006
	Jan-Mar			Jan-Mar			Jan-Dec
Result Indexes
Operating Income		216,513			212,575			886,507
- Internal market		193,652			195,273			816,439
- External market		22,861			17,302			70,068
Operating Costs		(163,049	)		(165,232	)		(678,956	)
- Internal market		(149,252	)		(155,136	)		(625,292	)
- External market		( 13,797	)		( 10,096	)		( 53,664	)
Operating Result		22,657			19,271			83,579
Financial Expenses		( 8,500	)		( 10,558	)		( 35,371	)
Non-Operating Result		( 16,783	)		( 12,111	)		( 45,997	)
R,A,I,I,D,A,I,E,		26,725			30,491			124,040
Net Earnings (loss) after taxes		2,100			28			24,933

Operating income increased during the Jan-Mar 2007 period in 1.85% regarding the same last period and gross margin was 12.93%.

Depletion for the analyzed periods is detailed below:

	2007		2006		2006
	Jan-Mar		Jan-Mar		Jan-Dec
Argentina		169		362		1,288
Brazil		1,091		1,853		5,562
Chile		1,981		3,137		9,011
Venezuela		807		903		3,307
Total		4,048		6,255		19,168

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	2007			2006			2006
	Jan-Mar			Jan-Mar			Jan-Dec
Profitability Indexes
1. Net Worth Profitability		0.27	%		0.01	%		2.58	%
2. Asset Profitability		0.16	%		0.06	%		1.48	%
3. Operating Asset Performance		1.11	%		0.95	%		4.13	%
4. Net Income per Share (dollars)		0.00057			0.0002			0.0052
5. Dividend Return		N/A			N/A			1.01	%

Profitability Indexes reflect the said decrease of results.

B.- Description and analysis of the main components of net flows

	2007			2006			2006
	Jan-Mar			Jan-Mar			Jan-Dec
Positive net flow generated
by operating activities		30,584			3,013			132,035
- Debtor collection by sales		310,957			230,721			1,230,899
- Suppliers and Personnel Payment		( 274,716	)		( 202,366	)		( 1,053,794	)
- Others		(5,657	)		( 25,342	)		( 45,070	)
Net flow generated
by Financing Activities		(6,424	)		59,782			(32,963	)
- Share placement payment		-			44,011			44,012
- Loan granting		37,444			115,236			242,536
- Obligations to the public		-			172,720			162,965
- Dividend payment		-			-			(11,491	)
- Loan payment		( 43,388	)		( 116,582	)		( 291,108	)
- Obligations to the public payment		-			( 151,893	)		( 178,338	)
- Others		(480	)		(3,710	)		(1,539	)
Net flow generated
by Investment Activities		( 20,349	)		( 41,812	)		( 149,868	)
- Fixed assets sales		-			1,615			1,565
- Incorporation of fixed assets		( 18,795	)		( 18,130	)		( 121,843	)
- Others		( 1,554	)		(25,297	)		( 29,590	)
Total net flow for the period		3,811			20,983			(50,796	)
Inflation effect		( 19	)		( 6,212	)		(12	)
Initial cash balance
and cash equivalent		47,049			97,858			97,857
Final cash balance
and cash equivalent		50,841			112,629			47,049

When analyzing flows, we can observe the decrease in cash and in cash equivalent during the period due to the incorporation of new resources due to the capital increase completed in January 2006 and the liabilities restructuring completed with the placement of a UF Bond in January 2006.

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C. Book and economic value of assets and liabilities

The company’s main assets are its production plants located in Chile, and its investments abroad, in countries such as Argentina, Brazil, the United States, Venezuela, and Mexico, all which are assessed according to the generally accepted accounting principles. The studies that the company usually carries out to analyze the economic value of its productive plants show that such values exceed their respective book values and in those cases in which it is considered necessary, in light of evidence, provisions are made in order to adjust such values to market values.

D. Analysis of the most important variations occurred during the period

The company carries out its businesses in various markets, concentrated mainly in Chile, the United States, Brazil, Mexico, Argentina and Venezuela. Due to this fact, the company’s sales as well as its financial results are exposed to the individual conditions of each market. The following chart sets forth the distribution of sales, grouped by destination market.

	2007			2006			2006
	Jan-Mar			Jan-Mar			Jan-Dec
United States		18.9	%		27.0	%		26.0	%
Chile		15.8	%		17.7	%		16.3	%
Mexico		10.8	%		14.4	%		13.2	%
Brazil		19.3	%		16.3	%		16.4	%
Venezuela		13.6	%		8.0	%		10.4	%
Argentina		8.3	%		6.9	%		7.9	%
Others		13.3	%		9.7	%		9.8	%
Total		100.0	%		100.0	%		100.0	%

In the past years, Masisa S.A. has increased the diversification of its market risk expanding its productive and commercial operations to other countries. As such, currently it owns plants in Chile, Argentina, Brazil, the United States, Venezuela, and Mexico. The company also owns commercial operations in Colombia, Peru and Ecuador, and exports to numerous countries in America, Asia and Europe. This way, the company avoids exposition to the risk of any market in particular.

In its markets, the company also faces the risk of an eventual intensification of competition or the appearance of new actors in the wood boards, wood products, and forestry markets.

Masisa S.A. thinks it has solid positions in each of the markets in which it directly participates, which allows the company to maintain profitable operations in constant development. Nevertheless, the company can not assure that in the future these conditions will not change due to the incorporation of new participants or due to the intensification of competition in the markets in which it operates. To face these risks, the company concentrates its efforts in actions aiming to maintain its leadership in costs, to maintain a strong distribution chain, constantly improving its product mix, and to obtain brand recognition, among other things.

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The company is exposed, assets and liabilities wise, to the variations in foreign currency value other than the functional currency in which accounting is carried out (dollars). The existence of assets and liabilities in non-dollar currencies is mainly due to the company’s operations in the local market, national sales activities, investment activities in assets purchased in the local market, and obtaining internal financing. The non-dollar balances and/or denominated in a different currency other than the functional currency for the analyzed periods were the following:

Summary of asset and liabilities in non dollar currency

(expressed in thousands of US dollars)

	2007			2006			2006
	Jan-Mar			Jan-Mar			Jan-Dec
Assets		233,556			210,754			190,197
Liabilities		424,760			520,454			419,306
Asset Position (liability)		(191,204	)		(309,700	)		(229,109	)

The company uses derivative instruments to reduce currency fluctuation risk, as shown in the respective derivative instruments’ note.

Based in market conditions, the company’s management establishes policies to obtain credits, invest in deposits and marketable securities with resale agreements and the use of derivative instruments. Depending on the amounts, the Board of Directors also approves these transactions before their execution. New long term financing to finance new investments or refinance existing liabilities, must be approved by the Company’s Board of Directors. In the countries in which Masisa S.A. has operations, local management may obtain new short-term loans for its capital work needs in the normal operation of business.

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E.- Risk Analysis

Risk Factors Analysis

During the normal course of business, the company faces various market, financing, and operating risk factors, among others.

- Financing and exchange rate risk:

The company’s management establishes policies to manage the financial risk through the use of derivative instruments such as swaps, forwards, options or futures, to cover exchange risks as well as interest rate fluctuation.

The company does not use derivative instruments for speculation.

- Operating risk:

In the regular course of business, Masisa S.A. faces raw material supplying risks, especially in chemical resins and wood, which are essential elements for the production of its products. To minimize this risk, the company maintains long term agreements with chemical resin suppliers.

In addition to the forests and plantations that the company directly holds in Chile, it is also the principal shareholder of Forestal Tornagaleones S.A., who has plantations in Chile and Argentina. Additionally, it maintains a diversification policy for its wood residue supply, reducing dependence from individual suppliers.

As part of the regular course of business, the company may face hazardous risks in its plants, loss risk in its warehouses, third party damages, legal contingencies, commercial risks, and others. The company’s management intends to identify these risks to avoid its occurrence in any way possible; minimizing the potential adverse effects and/or covering through insurance policies the eventual losses if such events should occur.

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Relevant Events

A summary of Masisa S.A.’s relevant events for the period January - March 2007 is set forth below, and which the company’s management considers must be acknowledged by the Shareholders.

On March 292007, the Company informed the Superintendencia de Valores y Seguros (Chilean Securities and Insurance Superintendent’s Office), as well as the Security’s Exchanges, about the payment of a minimum an mandatory definite dividend and of an additional definitive dividend, with charge to net income for the period completed as of December 31, 2006. The total amount of the dividend to be shared was for US$ 12,466,914.79 or 50% of the net income distributable for the 2006 period which was US$ 24,933,829.57. This dividend of US$ 0.0021996229 per share will be paid on May 25th, 2007 in pesos, according to the exchange rate "dólar observado" (“observed dollar”) published in the Diario Oficial (Chilean Official Gazette) on May 18, 2007.

Aside from the information above, it is important to say that during the period January - March 2007 there were no other relevant events regarding the Company, which pursuant to the dispositions of Article 9 and paragraph 2 of Article 10 of Law 18.045, had considered being relevant to inform or to disclose.

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NOTE 34- Holdings

The remaining holdings as of March31^th, 2007 and 2006 are the following:

	2007		2006
	ThUS$		ThUS$
Tax Payable		9,704		15,533
Social Laws		2,731		1,474
Remuneration payable		1,939		1,287
Others		90		52
TOTAL		14,464		18,346

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NOTE 35- Recoverable taxes

At March31 2007 the detail of the recoverable taxes, is the

following:

	2007 THUS$			2006 THUS$
First category tax		(3,865	)		(1,345	)
Monthly provision payments		17,137			25,232
Provisional payment for absorbed utilities (1)		21,127			14,868
IVA to recover exportations		6,538			4,127
Fiscal Credit IVA		13,804			14,483
Qualifications expenses		1,398			539
Other credits		5,564			2,789
TOTAL Tax to recover		61,703			60,693

(1) During the year 2003, the merger was carried out in which the absorbed companies (Andinos S.A., Sociedad Forestal Millalemu S.A. and Forestal Terranova S.A.) registered tributary utilities of previous periods that had not been withdrawn, generating a right to recover in proportional form the paid tax over the referred utilities, that were absorbed by the accumulated tributary losses that existed in the subsequent Company.

During the year 2005 the Company received dividends of old Masisa S.A., which allowed it to increase the amount of recoverable taxes over the same concept.

During the second trimester of 2005, took place the merger between old Masisa S.A. into Terranova, being generated a right to recover in proportional form the paid tax over the tributary utilities not withdrawn, that were absorbed by the tributary losses that were not retired and that were absorbed by the accumulated tributary losses that existed in the subsequent Company.

During the second trimester of the 2006, Masisa S.A. absorbed, due to a full right dissolution, the Chilean companies Masisa Investments Ltda., Masisa

Concepción Ltda. and Investments Colonel Ltda., all of which registered tributary utilities that were not retired and that had paid tax in previous years. Due to this fact and to that Masisa S.A. had accumulated tributary losses, the right was generated, for the absorbent one, to recover the taxes paid by the absorbed companies.

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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: May 15th, 2007	By:	/s/ Patricio Reyes U,
		Patricio Reyes U,
		General Counsel

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