[Translation] Ref. B.02.46/99 27 April 1999 To : President The Stock Exchange of Thailand Re. : Press release on the companys production and sales in the first quarter of 1999 The companys production and sales in the first quarter of 1999 as appeared in a press release for media on 27 April 1999 is attached herewith for the SETs information. Yours truly, - Signature - (Chitchai Thaveepanich) Assistant Vice President (Human Resources & Corporate Administration) Press Release For further information Padaeng Industry Public Company Limited Chitchai Thaveepanich April 27, 1999 Tel. 661-9900 ext. 211 Padaeng Industry reports an improving trend for the domestic zinc market. First quarter domestic sales up 47 %. Padaeng Industry revealed that the trend of the domestic zinc market has begun to improve. The volume of domestic sales in the first quarter rose by 47 % compared to the same period last year. In terms of production, the increasing usage of low cost zinc silicate ore has helped cut production cost. Mr.Brett Lambert, President and CEO of Padaeng Industry Public Company Limited, said that in the first quarter of 1999, the company achieved total metal sales of 24,809 tonnes, which comprised of 19,669 tonnes of zinc ingots and 5,140 tonnes of zinc alloy. Domestic sales amounted of 16,228 tonnes or 65 % of the total while 35 % or 8,581 tonnes was exported to overseas market. The domestic sales increased from the same period last year by 5,161 tonnes, a growth of 47 percent. The main factors contributing to the increase in domestic sales were the improving situation in the domestic zinc market and the easing liquidity problem in the financial sector. At the same time, the company was able to generate new clients from consumers who had previously used imported zinc. Production for the first quarter of this year from Mae Sod mine was 55,164 tonnes of ore with average zinc grade of 15.6 %, a zinc metal content of 8,631 tonnes. The zinc refinery was able to increase the proportion of zinc silicate ore in the feed plan from 24.6 % to 31.2 %, reducing the usage of imported zinc sulphide concentrates, resulting in a decline in the cost of production. The outputs of zinc cathode was 25,182 tonnes, from which 18,193 tonnes of zinc ingots and 5,314 tonnes of zinc alloy were produced. The alloy output was 108 % above the same period last year, in line with the companys policy of increasing the production of value added product. ************************* Bangkok Office : 26th-27th Floor, CTI Tower, 191/18-25 Rachadaphisek Road, Klongtoey District, Bangkok 10110, Thailand. Telex : 82682 PADAENG TH. Telefax : 2611108