Reasons over 20% change in company's financial performance

Translation H.T. 004/2548 Date: February 25, 2005 Re: Reasons for over 20% change in company's financial performance. To: President The Stock Exchange of Thailand As shown in the twelve months Consolidated Financial Statements as of December 31, 2004, the Company has a net profit after tax amounting to Baht 184.1 million, a decrease of 23.3%, against Baht 240.0 million for the same period of the prior year. The major contributed factors are:- 1. A change in interest recognition of overdue installment accounts from 5 periods to 3 periods per SEC's new regulations imposed on Consumer Finance business. This change in recognition had an adverse impact of Baht 12 million to net profit for the year 2004. 2. An increase of higher provision for bad debts per receivable aging has impacted the net profit by Baht 29 million. An incremental portion of longer-term motorcycle installment accounts from 7% to 17% of the total installment accounts as well as a slightly decrease in percentage of collection contributed to higher provision. Furthermore, the Company also had additional Baht 5 million of bad debts reserve for Tsunami's disaster. 3. A decrease of total revenue by 6.6% from prior year due to a significant decrease in sales of electrical home appliances and sewing machines under the fierce competition. In spite of the dramatic increase of installment accounts of motorcycles, it could not cover electrical appliance and sewing machines shortfall. All of the above have impacted net profit by Baht 11 million. 4. An increase of interest expense by Baht 12 million due to the growth of motorcycle installment accounts with longer installment period than electrical appliance. In order to support this growth, the Company have increased the medium-term borrowing with the higher interest rate by 1.5 %-2.0% per annum. 5. An increase of the corporate income tax by Baht 3.7 million due to higher provision of bad debts and obsolete inventories. Yours sincerely, Singer Thailand Public Co.,Ltd. (Mr.Prateep Saenghiranwathana) Controllerand Finance Director