15th November, 2004 The President The Stock Exchange of Thailand Dear Sir, Clarification on Operating Result for the Third Quarter of 2004 The Company's operating result for the third quarter of 2004 which has been reviewed by the external auditor has shown a net profit of THB2.77 m, an decrease of THB3.95 m or 58.8% from the same period last year. The significant reduction in the net profit could be attributed to the followings: 1. Net Sales Revenue increased by as much as 13.4%. 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. Moreover,the expansion of the Modern Trade in the South is a significant factor in the incremental sales volume. 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 28.8% of sales revenue, compared unfavourably to 30.2% of the same quarter in 2003. Nevertheless, in term of absolute amount, the gross profit for the quarter of THB113.0 m showed an increase of THB8.3 m or increase by 8.0% from quarter 3 in 2003. 3. The sales and administration expenses for the quarter increased by THB39.0 m or 33.8% from the same period in 2003. This increase was largely in the area of marketing expenses and sales promotions concluded with Modern Trade customers who have high bargaining power, and finally, higher costs of transportation. The above key reasons have resulted in the 58.8% decline in our net profit compared to the same quarter last year. It is worth noting that for the nine months of 2004, the Company's net profit of THB49.5m, or THB0.30 per share, is higher than that of the same period last year by 7.1 percent. Yours sincerely, Sec.Lt. (Phairoch Rattakul) Managing Director Securities Division Tel.0-2391-0108 ext. 108