Resons for over 20,hange in company's operations

Translation H.T. 056/2004 Date: November 12, 2004 Re: Reasons for over 20% change in company's operations To: President The Stock Exchange of Thailand As shown in the third quarter Consolidated Financial Statements as of September 30, 2004,the Company has a net profit after tax amounting to Baht 39.8 million against Baht 50.3 million for the same period of the prior year representing a decrease of 20.8% The major reasons for the decrease are as follows:- 1. A decrease of Total Revenue by 5.9 % compared with the same period of the prior year due to the product quality concern of TV 21" and one specific model of motorcycle which were called back and returned to the Suppliers who agreed to take their responsibilities on the damage to the Company. The problems of this concern have now been rectified. 2. Interest Income from Installment increased by 35.6% compared with the same period of the prior year due to an increase of motorcycle installment sales with longer contract duration up to 36 months. 3. An increase of selling and administration expenses by 2.7% from the same period last year was mainly from an increase of provisions for bad debt and obsolete inventory to reflect the current situation. 4. An increase of interest expenses by Thb.3.2 million from the same period last year was caused by higher midium-term borrowing to finance higher installment receivables growth especially for motorcycle sales. 5. Corporate Income Tax was higher than the same period of last year by Thb.5.2 million mainly due to an increase of the provisions for bad debt and obsolete inventory. Yours sincerely, (Mr. Prateep Saenghiranwathana) Controller and Finance Director