REPORTS ON FURTHER UTILISATION OF CAPITAL INCREASE

Thantawan Industry Plc. (THIP), referring to its previous report no. THIP/AC/-002/97 dated January 27, 1997 concerning uses of proceeds from capital increase, reported on plan for further uses of its remaining Bt19.30 million increased capital as follows: (In Million Baht) Plans to Improve & Boost Production Approximately Percentage 1. Gloves Products - Machines (about 20 units) 7.00 3.00 - Factory building improvement 36.27 15.54 Sub Total 10.00 51.81 2. P.P. Zipper Bag Products - Machines (about 5 units) 4.50 23.32 - Factory building improvement 1.50 7.97 Sub Total 26.00 31.09 3. Straw Products - Factory building improvement 3.30 17.10 Sub Total 3.30 17.10 Grand Total 19.30 100.00 Expectedly, the outlay according to the above mentioned plans will be completed in the second quarter of 1997. Concerning the project to produce T-Straw, the study conducted on the project possibility suggested that high investment would be needed while the rate of returns was considerably low, so the company has already stopped the plan.