[Translation] Ref. PDI.B.02.42/2000 15 May, 2000 To : President The Stock Exchange of Thailand Re. : Clarification on the companys performance in the first quarter of 2000 Attached please find a copy each of Thai and English version of the unaudited equity method and consolidated interim financial statements of Padaeng Industry Public Company Limited for the quarter ended 31 March, 2000 for the SETs information. From the statement of profit & loss, the companys net profit for the quarter ended 31 March 2000 was Baht 72.4 million compared to a net profit of Baht 196.0 million for the quartered ended 31 December 1999, a decrease of 63 %. This decline can be attributed to an exchange rate loss of Baht 9.2 million in Q1, 2000 compared to an exchange rate gain in Q4, 1999 of Baht 171.3 million. Also in Quarter 1, 2000 the company incurred a cost of Baht 32.8 million for a mutual separation plan for staff. In addition higher than expected shutdown expenses were incurred at plant. However the average cost of production was 3% lower than the previous quarter due to an increase in the silicate share of raw materials. Ingot sales for the first quarter were 18,387 Mt, 1,375 tons lower than the 4th quarter of 1999. Alloy sales were 5,342 Mt, 136 mt higher than in the 4th quarter of 1999. The lower sales volume and an appreciation of the Baht of 1.16 Baht /US $ resulted in reduced revenue for the quarter of Baht 1,203.7 million compared to Baht 1,285.6 million in the 4th quarter of 1999. This was despite an increase in the LME price for zinc of US $14 per ton over the quarter. During the quarter, the domestic share of sales increased from 68% in the 4th quarter 1999 to 75% in the first quarter of 2000. . . . / 2 2 The consolidated net profit before minority interests and extraordinary items was Baht 69.9 million compared to Baht 206.3 for the 4th Quarter, 1999. After deducting minority interest for the quarter (Baht 0.446 million) and adding the net income of a subsidiary that had ceased operations (Baht 1.987 million), consolidated net profit for the first quarter 2000 amounted to Baht 71.424 million, compared to a net profit of Baht 210.6 million in the fourth quarter of 1999. Please be notified accrodingly. Yours truly, - Signature - (Mr. Arsa Sarasin) Chairman