OPERATING RESULTS

TP-MT-112/99 (FC169/99) November 12, 1999 Subject: 1. Report on Comparative Operating Performance Between the 3rd Quarter of 1999 and 1998 2. Filing of Verified Financial Statements for the 3rd Quarter of 1999 and 1998 Attention: Director and Manager, SET Enclosures: Verified Financial Statements and the Report of C.P.A. for the 3rd Quarter of 1998 - 1999, 2 copies (1 Thai and 1 English versions) Pursuant to SET regulations concerning Criteria, Conditions and Methods of Preparation, Filing, and Reporting on Financial Status and Business Performance of Listed Companies dated May 19, 1993 required for the company's clarification on causes contributing to changes over 20 percent of business performances from the previous operating period accordingly. Thantawan Industry Public Co.,Ltd (THIP) therefore clarifies the major causes for significant changes of business performances in the 3rd Quarter of 1999 as compared with the same quarter in 1998 as followings: 1. Sales revenues had total decreasing amount of Bt. 36.46 million or taken as 17.71% due to following causes: 1.1 Sales revenues in U.S. dollars had decreased from amounting USD 4.91 million in the 3rd Quarter of 1998 to amounting USD 4.16 million in the 3rd Quarter of 1999 or decreasing at 15.41%. 1.2 The average exchange rate of Baht to U.S. Dollar in the 3rd Quarter of 1999 was Bt.38.30 per dollar and when compared with the same previous period was at Bt.40.91 per dollar had resulted in stronger value of Baht at rate of 6.38%. This had impact as the decreased revenues in Baht and contributed to weakening competitiveness in terms of product pricing when compared with competitors. 2. In consideration of comparative financial statements using Financial Common Size Statement had shown that: 2.1 Cost of Goods Sold had increased to 68.94% in the 3rd Quarter in 1999 from the same previous year quarter at 60.15% due to major cost items were fixed costs which did not vary in according to the decreased revenue amount. 2.2 Selling and Administrative Expenses had increased to 21.58% in 1999 from the same previous year 3rd Quarter in 1998 at 17.94%. 3. With the impact of such above cited causes, therefore, had resulted to decreasing Net Profit at only Bt.11.60 million in the 3rd Quarter of 1999 in which decreasing from the same period at Net Profit amounting Bt.31.42 million or taken as 63.08%. Please be informed accordingly. Very truly yours, (Mr. Phietoon Trivijitkasem)(Mr. Pichai Tangwithetchit) Director Director