Explaination of The FS for Q2/2006

THIP-SET/037/2549 August 11th, 2006 Subject : Filing of Verified Financial Statements for the 2nd Quarter of 2006 Attention : Director and Manager, SET Enclosures : 1. Verified Financial Statements and the Report of C.P.A. for the 2nd Quarter of 2006 2. Business Performance Summary Form of Registered Company (Form F45-1) According to Thantawan Industry Public Co., Ltd. (THIP) had held a general shareholders' meeting, no.6/2006 on Friday, August 11, 2006. The meeting had approved the Balance Sheet, Statements of Income and Statements of Cash Flows for the second quarter ending June 30, 2006. The company would like to indicate the changes of business performances as follow. The company's net profit for the 2nd Quarter of 2006 was 8 million baht while at the same period in 2005 was 51.02 million baht, decreased 43.02 million baht or 84.32%, causes as follow: 1. Revenue for the 2nd Quarter of 2005 was higher than the same period in 2006 causes from the transferred of doubtful account by parent company in the amount of 40 million baht to the company. 2. A loss on foreign exchange was 0.47 million baht comparing to the same period in 2005 was 3.28 million baht which caused by the appreciation of baht to US dollar on the average from 39.97 baht/US$ to 37.83 baht/US$ during the 2nd Quarter of 2006. Please be informed accordingly. Very truly yours, (Mrs.Pojanard Phanaskhao)(Mr. Phietoon Trivijitkasem) Authorized Director