REASONS FOR OVER 20% CHANGE COMPANY OPERATIONS

( Translation ) No. 039/2541 26 August 1998 Re : Reasons for over 20% change in company's operations To : Director of Listed Companies Department Stock Exchange of Thailand As shown in year-end consolidated financial statements, the company has suffered a loss after tax including an exchange loss amounting to Baht 246 million, representing a sharp decrease of 150 % vs the after-tax profit of Baht 737 million achieved for the same period of prior year. In this connection, the company wish to provide reasons for the unfavorable result of its operations as follows : - 1. The exchange loss with the amount of Baht 76 million for twelve months ended 30 June 1998 was reported as extraordinary item in accordance with the announcement of the Institute of Certified Accountants and Auditors of Thailand No. 002/2540-2542 dated 19 September 1997. This exchange loss has not yet been realised as such three-year loan will be due for repayment in July 1999, January 2000 and July 2000, respectively by three consecutive equal installments. 2. Loss from operations for the period of twelve months covering July 1997 to June 1998 amounting to Baht 169 million was due to :- 2.1 Decrease in sales of 38.6 % or Baht 3,242 million from the same period of prior year. The country's worsening economic slowdown, rising unemployment and the continuous company's responsive strict measures on hire purchase financing scheme, all attributed to the company's weakening sales. 2.2 Under poor economic situation, the company have to make reserved expenses for bad debts, product loss, and employees shortage increased by Baht 103.7 million from prior year in order to run business in a conservative way. 2.3 As a result of liquidity crunch, the company had to bear higher interest rates from 11-12% per annum in 1997 to 15-17 % per annum in 1998. With the above reasons, the company have to report the operation loss for the period of twelve months as of June 30, 1998. Yours sincerely, Singer Thailand Public Company Limited ( Mr. Sophon Pholvilai ) Director