[Translation] Ref. PDI.B.02.76/2000 15 August 2000 To : President The Stock Exchange of Thailand Re. : Clarifications on company's performances in the second quarter and first-half of 2000 Attached are a copy each of Thai and English version of the unaudited interim financial statements (both consolidated and on the company only) of Padaeng Industry Public Company Limited for the quarter and six-month period ended 30 June 2000 together with clarifications on the company's performances during the said periods for the SET's information as follows : For Half Year Performance 2000 From the statement of profit & loss, the Company's net profit for the period of six months ended June 30, 2000 was Bt108m compared to the net profit of Bt107.5m for the same period of last year, a slight increased. However, the net profit from operation before abnormal items for this period was Bt219.6m, increased from the same period of last year by Bt94.4 m or 132%. But with the marked to market exchange loss for this period was Bt61.27m and the Mutual Separation Program expense of Bt32.87m, together with the adjustment for depreciation of residual pond of Bt11.26m, resulted in a slight increase in the net profit for this period. Revenue total was Bt2,374.85m, increased from Bt2,109.52m or 12.5% from the same period of last year. Ingot sales was 35,491 tonnes and Zinc Alloy sales was 11,285 tonnes which is slightly lower than the same period of last year due to some maintenance program in production line. But with the weighted average LME price for zinc for this period is US$152 per tonne higher than this period in 1999 and the increase in domestic from 64% of sale in the same period of 1999 to 74% of this year, the net profit from operation was increased. . . . / 2 2 For the consolidated statement, the company's net profit before and abnormal items was Bt214.85m, increased from 1999 which was Bt106.83 m by 101%. However, after the deduction of minority interest and the abnormal items as million above, the net profit was Bt94.84m increased from Bt71.36m in 1999 by 32.9%. For the quarter performance For the statement of profit & loss, the net profit for the quarter was Bt37.3m compared to the net profit of Bt88m for the same quarter of 1999. Which was a 57% decreased. However, the net profit before the abnormal items was Bt98.8m compared to Bt70.97m in the same quarter of 1999, or a 39.2% increased. The main reason for the lower net profit are the marked to market exchange loss of Bt52.0m which in the same quarter of 1999, there was an exchange gain of Bt34.4m. Revenue total was Bt1,169.86m compared to Bt1,070.79m in 1999 or a 9.2% increased. The total Zinc Ingot sold was 17,104 tonnes, slightly decreased from the same period of 1999. The increased in revenue was due to the change of product mix to produce more alloy product which is a value added product together with increased in average LME zinc price and increase in domestic market. For the consolidated statement, the company's net profit before and abnormal items was Bt96.77m, increased from 1999 which was Bt72.754m or 33% increase. However, when deducted the minority interest and the abnormal items for example the exchange loss and the loss in the discontinued of subsidiaries company as mention above, the net profit was Bt25.16m, decreased by Bt51.46m from Bt76.62m of 1999. Yours truly, - Signature - (Pinit Vongmasa) Chief Executive Officer Board Secretary Division Tel. 661 9900 Ext. 1501, 1402