FILES AUDITED ANNUAL FINANCIAL STATEMENT WITH EXPLAINAT

Thantawan Industry Plc (THIP) reported audited annual financial statement as follows: (In thousand) Ending December 31, For 1 year 1996 1995 THIP Net profit (loss) 7,472 15,383 EPS (baht) 0.93 1.92 Thantawan Industry Plc (THIP) would like to explain for the change of business performance exceeding 20% year-on-year, as follow: 1.The overall indolent economy in 1996 was the main factor causing company to make only minimal revenues to Bt534.63 million compared with 658.95 million in 1995, subciding 18.87%. 2.As imported raw materials for producing and exporting tubes have not utilised within 1 year, company must pay import duty and charge to The Customs Department at Bt3.46 million or 0.65% of total revenues. 3.Auditor determined to reserve Bt6.10 million for allawance for debtful account and for inventory devaluation or 1.14% of total revenues, based auditing standard. These 3 reasons caused company to make net profit dropping to Bt7.47 million or 1.40% of total revenues. If it had not paid for import duty and charge 0.65% of total revenues, net profit margin in 1996 would have been sustained as the same as in 1995, that is, 1.40 plus 0.65 is equal to 2.05 compared with 2.33 as of previous year.