COMPARATIVE PERFORMANCE OF Q3 BETWEEN 97 AND 98

Ref. TP-MT-101/98 (AC004) 13 November 1998 Subject: 1. Notification of Comparative Operational Performance of 3rd Quarter Between 1997 and 1998 2. Forwarding of Audited Financial Statements and Reports of Financial Status and Operational Performance as of 3rd Quarter of 1997 & 1998. Attn. : Managing Director, Stock Exchange of Thailand Enclosures: 1. Audited Financial Statements and Audit Report of CPA as of 3rd Quarter of 1997 and 1998 (2 copies) 2. Summary of Financial Status and Operational Performance as of 3rd Quarter of 1998 Referring to the regulation of SET on Criteria, Conditions, and Methodology of Preparation and Submission of Financial Statements and Reports on Financial Status and Operational Performance of Registered Companies, dated 19 May 1993, requiring for notification of causes-effects relationship for significant changes of operational performance from previous year period of more than 20 percent. THIP would like to clarify the main causations which had changed business performance materially in 3rd quarter, 1998 from 3rd quarter in 1997 as followings: 1. The total revenues of THIP had increased from Baht 165.86 million in 3rd quarter of 1997 to be Baht 213.58 million in 3rd quarter of 1998, computed as increasing rate of 28.77%, which was due to: 1.1 Sales revenue, as computed in Baht, had increased from previous year in the same quarter amounting 28.40% but when computed in USD had increased from previous year amount as only 2.10% 1.2 The exchange rate of Baht against USD had by average increased from 32.62 Baht per a dollar to be 40.90 Baht per a dollar, computed as increasing rate of 25.38% 2. The net profit in the 3rd quarter of 1998 was Baht 31.42 million which had increased from the same quarter of previous year, amounting Baht 12.56 million, that was increasing of Baht 18.86 million or as 150.08% The main cause of impressive change in business performance above was due to major revenues of THIP were exporting more than 96% of total revenues. As the value of Baht against dollar was still in volatility in the 3rd quarter of this year as compared with previous year, therefore resulted in the company having earned revenues in Baht value increasingly. In addition, in the 3rd quarter of this year, THIP has still received purchasing orders consistently and could reduce its interest expense, therefore, had resulted in maintaining administrative expenses, inclusive of interest expense but not income tax, in the same amount level closing to the previous year which had affected better performance in total of this year when compared with the same quarter of 1997. Please be informed accordingly. Best Regards, Mr. Phietoon Trivijitkasem Mr. Pichai Tangwithetchit Director Director Thantawan Industry Public Company Limited Summary of Financial Status and Operational Performance as of 3rd Quarter of 1997 - 1998 Unaudited (Unit : Thousand) Balance Sheets as of September 30 1998 1997 Current Asset 340,961 229,835 Total Asset 500,723 377,776 Current Liabilities 145,402 135,493 Total Shareholders' Equity 355,321 242,283 Statement of Income Three Months Ended Nine Months Ended (Jul. - Sep.) (Jan. - Sep.) 1998 1997 1998 1997 Sales 205,857 160,348 668,003 392,991 Total Revenues 213,578 165,863 692,520 408,089 Cost of Sales 126,299 109,211 426,553 302,669 Selling & admin.exp. 41,382 40,332 117,335 88,627 Net income 31,420 12,564 103,407 12,998 Earnings per share (Baht) 3.93 1.57 12.93 1.62 Remark : Selling and administrative expense is including interest expense but excluding income tax expense. ................ ................... Mr. Phietoon Trivijitkasem Mr. Pichai Tangwithetchit Director Director Thantawan Industry Public Company Limited Statement of Income (Unit : Thousand) Unaudited Unaudited Increased (Decreased) 3rd Quarter of 1998 3rd Quarter of 1997 Amount % Amount % Amount % Revenues Sales 205,857 96.38 160,348 96.67 45,509 28.38 Other income Income from subsidy- 417 0.20 583 0.35 (166) (28.47) for export tax Sales of scrap 4,317 2.02 3,755 2.26 562 14.97 others 2,987 1.40 1,177 0.72 1,810 153.78 Total Revenues 213,578 100.0 165,863 100.0 47,715 28.77 Expenses Cost of Sales 126,299 59.13 109,211 65.84 17,088 15.65 Selling & admin. 41,278 19.33 38,942 23.48 2,336 6.00 expenses Interest expense 104 0.50 1,390 0.84 (1,286) (92.52) Income tax exp. 14,477 6.78 3,756 2.26 10,721 285.44 Total Expenses 182,158 85.29 153,299 92.42 28,859 18.83 Net income 31,420 14.71 12,564 7.58 18,856 150.08 ................ ................... Mr. Phietoon Trivijitkasem Mr. Pichai Tangwithetchit Director Director