CLARIFIES ITS Q3/1996 FINANCIAL STATEMENT WITH DETAILS

THIP reported on its reviewed quarterly financial statements as follows: (In Thousands) Ending September 30 3rd Quarter For 9 Months 1996 1995 1996 1995 THIP Net profit 917 4,602 8,866 17,815 EPS (Bt) 0.21 0.58 1.11 2.23 Thantawan Industry Plc (THIP)clarified its Q3/1996 operating performance which had a total revenue of Bt124.59 million and a net profit of Bt0.92 million, more than 20% lower than the figure of Bt171.58 million of total revenue and Bt4.60 million of net profit in 1995. The reasons were as follows: 1. Both domestic and overseas economy were in a slowdown affected from Q2 of the same year. This caused total revenues to drop to Bt124.59 million in Q3/1996 from Bt171.58 million in Q3/1995 or dropped 27.39% 2. The company had to pay import tariffs and fines to the Custom Department for Bt2.25 million or 1.81% of total revenues due to unable to use all raw materials needed in straw production within 1 year. This was affected from reason no 1. and caused the net profit to drop to Bt0.92 million or 0.74% of total revenues. However, if not consider import tariffs and fines, the company will retain its Q3/1996 net profit margin to the level close to the figure of last year. The figure dropped 1.81% plus 2.55% which makes 2.68% drop.