Clarification of change operation results in excess of 20%

30th October, 2006

Subject: Clarification of change in the operating results in excess of 20% in financial statement

To: Managing Director The Stock Exchange of Thailand

The company's consolidated operating results showed a net profit of Baht 75.39 million in the reviewed financial statements for 3 months period ended 30 September 2006, being a decrease in net profit of Baht 103.46 million or 57.85% compared to the same period of the preceding year, or a change in excess of 20%.

The company will accordingly like to clarify the reasons for this change as follows:

The company recorded total consolidated revenues of Baht 1,192.16 million, being an increase over the same period of the preceding year by Baht 426.84 million or 55.77% mainly due to sales revenue generated from its subsidiaries in Turkey and USA as also other income on account of gain on foreign currency fluctuation. Despite the increase in total sales revenues, average sales realization declined due to over supply situation of company's product in the market. The company recorded total consolidated expenses (cost of sales and selling and administrative expenses) of Baht 1,097.70 million being an increase over the same period of the preceding year by Baht 514.14 million or 88.10% mainly due to higher raw material prices (arising due to global increase in crude oil prices) and which was further contributed by higher utility costs (power & fuel). The net consolidated financial charges during the quarter were Bt 14.63 million, an increase of Bt. 11.73 million mainly due to interest on long term borrowings drawn by the company and its subsidiary for investment in the production line in Turkey.

The combined net result of decline in per unit sales realization, sharp increase in cost of sales along with increase in financial charges, etc explains the decrease in consolidated profitability by Bt. 103.46 million.

Please be informed accordingly.

Yours sincerely,

Mr. Manish Gupta
        Director