CLARIFIES ITS Q3/1996 FINANCIAL STATEMENT

Padaeng Industry Plc (PDI) reported on summary of its reviewed quarterly financial statements as follows: (In Thousands) Ending September 30 3rd Quarter For 9 Months 1996 1995 1996 1995 PDI/PDI and its subsidiaries Net profit (loss) (95,345) (195,799) (374,029)(312,923) EPS (Bt) (0.79) (1.88) (3.41) (3.01) Padaeng Industry Plc (PDI)clarified its Q3/1996 financial statement which had a loss before gain/loss in subsidiaries of Bt63.29 million. And after realization of net profit(loss) in subsidiaries and affiliates, the company posted a net loss of Bt95.35 million compared to Q2/1996 which showed a net loss of Bt105.62 million and Bt130.68 million respectively or a decline rate of 40.07% and 27.04% respectively. Its 9-month operating performance in 1996 had a net loss before gain (loss) in subsidiaries and affiliated of Bt283.93 million. And after realizing gain(loss) in net profit(loss) subsidiaries and affiliates, it posted a net loss of Bt374.03 million. Its Q3/1996 operating performance showed a lower net profit by 40% compared to Q2/1996 due to it smelt 20% of zinc silicate with zinc sulphite resulting in a lower production cost and a continuous management and reduced much of its loss. However, the company still had to pay high electricity cost from the adjustment in FT figure of Electricity Generating Authority of Thailand (Egat) and also had to realize a loss in its holdings. Anyway, in Q3/1996, the company was able to sell zinc and sulphite products causing a higher 9-month sales of Bt1,933.50 million compared to Bt1,498.79 million or a 29% rise in Q3/1995.