Clarifications on company's performances in the Q2/2005

[Translation] Ref. PDI/BK-BS-053/2005 11 August, 2005 To : President The Stock Exchange of Thailand Re.: Clarifications on company's performances in the second quarter and first-half of 2005 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 second quarter and six-month period ended 30 June 2005 together with clarifications on the company's performances during the said periods for the SET's information as follows: From the company's consolidated statement of income for the 2nd quarter of 2005, total sales from revenues and services was Bt1,653.5m which increased by Bt83.9m or a 5.3% increase from the same quarter of last year. There was a net profit of Bt198.3m or a net profit per share of Bt0.88 compared to net profit of Bt45.9m or a net profit per share of Bt0.20 in the same period of year 2004, a 331.5% increase. From the company's consolidated statement of income for the first six months of 2005, total sales from revenues and services was Bt3,152.9m which increased from the same period of last year by Bt325.0m or a 11.49% increase. There was a net profit of Bt333.0m or a net profit per share of Bt1.47 compared to net profit of Bt130.3m or a net profit per share of Bt0.58 in the same period of year 2004, a 155.5% increase. The company's total sales volume for the first half of the year decreased by 7.4% to 53,043 metric tons as compared to the same period of 2004 in line with the lower market demand. The main factors for the increase in net profit despite the lower sales volume are the higher LME zinc price in 2005 and the increased input of silicate ore from Mae Sot mine. Please be informed accordingly. Yours truly, - Signature - (Pinit Vongmasa) Chief Executive Officer Board Secretary Division Tel. 0 2661 9900 Ext. 1402, 1501 Fax. 0 2661 9946 Page 1 of 1