Notification of Operating Result for Q2/2010

THIP-SET / 028(1) /2010 August 13th, 2010 Subject : Filing of Reviewed Financial Statements for the 2nd Quarter of 2010 and 2009 Attention : The President The Stock Exchange of Thailand. Enclosures : Reviewed Financial Statements and the Auditor's Review Report for the 2nd Quarter of 2010 and 2009 The Board of Directors Meeting No.4/2010 of Thantawan Industry Public Company Limited which was held on August 13th, 2010 had approved the Reviewed Financial Statements for three-month and six-month period ended June 30, 2010. The Company's net profit for the 2nd Quarter was reported at Baht 3.62 million decreased by Baht 8.62 million or 70.42% from the same period last year which was recognized profit of Baht 12.24 million. As the difference was more than 20%, the Company, therefore, would like to clarify as below - 1. Sales revenue increased by Baht 38.79 million or 16.33% resulting from increase in quantity 7.63% and also upper from selling price 7.47%. 2. Cost of Goods sold was sharply rising from 77.02% to 80.41% of sales revenue due to 1.) Resin cost, a major material, was rapidly jumping by 18% comparing to last year and 2.) Pulp and paper, a major material of packaging, increased by 15% 3. Increase in Administrative expenses of Baht 8.52 million or 35.41%. The significant was clarified below 3.1) Employees expenses were risen from the same period last year by Baht 3.25 million or 17.64% due to more employees hired and payment for employees'retirement 3.2) Retroactive tax paid for the materials imported previously amounting to Baht 4.05 million 3.3) Allowance for doubtful account for this period of Baht 0.80 million 3.4) Increase in Bank charge and consulting fee of Baht 0.81 million Please be informed accordingly. Very truly yours, (Mrs.Pojanard Prinyapatpakorn) (Mr.Huang Kuan-Chiun) Authorized Director