Dr. David Brand, Current Director of Program, To Purchase Entity In Management Buy-Out

BOSTON, (July 1, 2005 )-With opportunities in its core timberland investment management business growing rapidly, the Hancock Timber Resource Group has sold its Sydney, Australia-based New Forests Program.. The New Forests Program is an asset management and advisory business specializing in managing forests on a commercial basis for carbon sequestration and other environmental values.

Dan Christensen, HTRG's chief executive officer, said today that the business has been sold via a management buy-out to Dr. David Brand, who is currently the Director of the New Forests Program. The transaction is effective today and Dr. Brand and existing staff in the program will be transferring over to the new company.

The new company, called New Forests Pty Limited, will focus on specialized forestry asset management and advisory activities related to carbon trading and other emerging environmental markets.

"We have seen and continue to see substantial growth in our core timberland business. As a result, we believe the New Forests Program has not reached its potential," said Mr. Christensen. "At the same time, we recognize that the market for environmental credits is growing steadily, and the New Forests business needs additional capital to meet the demands of growth. We believe New Forests Pty Limited will prosper more as a stand-alone entity focused on growth in this area."

"I see this as a positive development for both parties," Dr. Brand said. "New Forests Pty Limited will be able to access additional capital from the market and expand in line with demand for our services. We also will be able to offer consulting services and advisory outside of the traditional timberland investment advisory and management business model."

The New Forests Program, established almost five years ago, was based on extending the traditional timberland investment model to encompass emerging environmental market opportunities related to carbon sequestration, land and water conservation and biodiversity.

"We believe the trend towards using market-based solutions to solving key environmental challenges of the 21st century provides a unique opportunity for business development in forestry asset management and advisory work," said Dr. Brand, who added that HTRG and New Forests Pty Limited intend to maintain a strong working relationship and seek synergies between the businesses going forward.

New Forests Pty Limited will be substantially dedicated in the near term to supporting the investment of financial commitments to the Australian Sustainable Investments Fund (ASIF), an investment operation established with fund manager James Fielding Funds Management, Ltd, a subsidiary of Sydney-based property company, Mirvac Group, The fund will be investing in the forestry and carbon sequestration potential of forests in Australia and New Zealand. New Forests Pty Limited will be supporting the management systems and investment strategies needed to successfully implement the objectives of ASIF.

New Forests will also offer consulting and advisory services to business and governments, project development work, and assistance with sourcing or selling environmental credits. The business will be based in Australia, but will operate both domestically and internationally.

HTRG, an operating company of MFC Global Investment Management, oversees 2.0 million acres of timberland, worth $2.5 billion, in the Pacific Northwest and the Southeast United States as well as Canada, New Zealand and Australia. Additional information about HTRG may be found at its website: www.hancocktimber.com.

MFC Global Investment Management is the institutional asset management arm of Manulife Financial. Based in North America with investment offices in Toronto, Boston, London, Tokyo, Hong Kong and Southeast Asia, the firm has more than 100 years of experience managing funds. Additional information about MFC Global Investment Management may be found at its website: http://www.mfcglobal.com.

Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$350 billion (US$290 billion) as at March 31, 2005.

Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.