[Translation] Ref. PDI.B.02.35/2002 15 May, 2002 To : President The Stock Exchange of Thailand Re. : Clarification on the company's performance in the first quarter of 2002 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 2002 for the SET's information. From the company's statement of income on Equity Method, the company's total revenue was Bt1,123.69m which decreased from the same quarter of year 2001 by Bt262.9m or 18.9% decreased. There was net loss of Bt5.39m or a net loss per share of Bt0.02 compared to an earning per share of Bt0.52 in the same period of year 2001. From the company's consolidated statement of income, total revenue was Bt1,124.74m which decreased by Bt262.72m or 18.94% from the same quarter of last year. There was net loss of Bt5.98m or a net loss per share of Bt0.03 compared to an earning per share of Bt1.19 in the same quarter of year 2001. The main reason for the reduction in revenue in this year is due to the LME zinc price which decreased from the average of 1,020USD/ton in the first quarter of year 2001 to only 794 USD/ton of this year, down by 22.16%. The production in the first quarter of year 2002 was 25,491 tons, increased from the same quarter of last year by 588 tons and the sale volume was 26,059 tons similar to the year 2001. Apart from zinc price, the net loss this year was due to the annual plant shutdown which was Bt55.8m while it was only Bt7.5m in the same quarter of last year. In addition, there was also an adjustment of Bt20.25m on residual pond provision that will extend the life of pond. Please be informed accordingly. Yours truly, - Signature - (Pinit Vongmasa) Chief Executive Officer Board Secretary Division Tel. 0 2661 9900 Ext. 1402, 1501 (Translated by Dr. Surin Tanticharoenkiat) Page 1 of 1