16th August, 2004 The President The Stock Exchange of Thailand Dear Sir, Clarification on Operating Result for the Second Quarter of 2004 The Company's operating result for the second quarter of 2004 which has been reviewed by the external auditor has shown a net profit of THB26.13 m, an increase of THB8.19 m or 45.7% from the same period last year. The significant improvement in the net profit could be attributed to the followings: 1. Net Sales Revenue increased by as much as 43.2%. This is partly a result of the efficient run of our new PET blow moulder and filling machines which gave us more flexibility in producing products required by the market than in the past when we had to source PET packages from external supplier. 2. However, the various sales promotions, especially with the Modern Trade customers, had inevitably reduced the gross margin ratio. This quarter's gross margin was recorded at 29.4% of sales revenue, compared unfavourably to 31.4% of the same quarter in 2003. Nevertheless, in term of absolute amount, the gross profit for the quarter of THB161.8 m showed an increase of THB40.9 m or increase by 33.8% from quarter 2 in 2003. 3. The sales and administration expenses for the quarter increased by THB46.4 m or 40.9% from the same period in 2003. This increase was largely in the area of marketing expenses and sales promotions done with Modern Trade customers who have very high bargaining power. The above key reasons have resulted in the 45.7% growth in our net profit compared to the same quarter last year. For the first six months of 2004, the Company's net profit of THB46.8 m, or THB0.28 per share, was higher than the same period last year by 18.6%. Yours sincerely, Sec.Lt. (Phairoch Rattakul) Managing Director Securities Division Tel. 0-2391-0169 ext.108