[Translation] Ref. PDI/BK-BS-044/2006 15 May 2006 To : President The Stock Exchange of Thailand Re: Clarification on the company's performance in the first quarter of 2006 Attached please find a copy each of Thai and English version of the reviewed company only interim financial statements and consolidated interim financial statements of Padaeng Industry Public Company limited for the quarter ended 31 March 2006 for the SET's information. For the first quarter of 2006, total sales of metal totaled 25,262 tons, a 2.3% decrease from 25,855 tons of the same quarter last year. The slight decrease can be attributed to lower export sales which were almost fully compensated by a 13% increase in domestic sales. Despite the repeated signals of slowdown of the domestic activity, the market consumption of zinc metal actually increased by 2.6% compared to the same period last year, in particular in auto parts and the continuous galvanizing sector, although part of the increase might be due to stock replenishment. The extent of the company's improved performance is largely due to the rise of the LME zinc price, which has increased since last year from an average of USD1,317 per ton in the first quarter of 2005 to average of USD2,242 per ton in the first quarter of 2006, a growth of 70%. From the company's statement of income on Equity Method, the company's total revenues from sales and services was Bt2,129m which increased from the same quarter of year 2005 by Bt665m or 45% increase. There was a net profit of Bt455m or a net gain per share of Bt2.01 compared to a net gain per share of Bt0.61 in the same period of year 2005. From the company's consolidated statement of income, total revenues from sales and services was Bt2,133m which increased by Bt665m or a 45% increase from the same quarter of last year. There was a net profit of Bt456m or a net gain per share of Bt2.02 compared to a net gain per share of Bt0.60 in the same quarter of year 2005. Please be informed accordingly. Yours truly - Signature - (Bernard Tonnon) Managing Director Board Secretary Division Tel. 0 2661 9900 Ext. 1402 Fax. 0 2661 9946