An Update Report of Debt Repayment by Parent Company

THIP-SET/001/2548 February 3rd, 2005 Subject : An Update Report of Debt Repayment by Parent Company. Attention : Director and Manager, SET Regarding Sunflower Enterprise Co.,Ltd.had issued paper of debt acknowledgement amounting 50,000,000 baht,(fifty million baht) which had partially repaid 10,000,000 baht (ten million baht) to Thantawan Industry Public Co.,Ltd.,therefore the remaining debt is 40,000,000 baht (forty million baht).The remaining repayment schedules are as following:- 3rd repayment 10,000,000 baht (ten million baht) will be due on January 31,2005. 4th repayment 10,000,000 baht (ten million baht) will be due on February 28,2005. 5th repayment 20,000,000 baht (twenty million baht) will be due on March 31,2005. Sunflower Enterprise Co., Ltd. had notified Thantawan Industry Public Co., Ltd.that it was unable to increase more capital or sell its asset therefore it was unable to pay the 3rd repayment which had been due on January 31, 2005. Sunflower Enterprise Co.,Ltd. then proposed to transfer a plot of land which is a group of company's asset as repayment for the unpaid amount. This plot of land is in process of appraisal by the independent appraiser in order to have a fair value to cope with such payment. Board of Directors held a meeting and reached following resolutions:- 1) Assigning the managing director to consult with Thantawan Industry Public Co., Ltd.'s legal adviser , by which Thantawan Industry Public Co.,Ltd. has not yet accepted the proposal of Sunflower Enterprise Co., Ltd. The board had agreed to carry out this matter by abiding with the related laws, and assigned the legal adviser to analyze pros and cons of the proposal, then suggesting alternatives for resolving he issue to the board for its considering further within February 10, 2005. 2) Assigning the managing director to coordinate with Sunflower Enterprise Co.,Ltd. in appraising price of the land using as debt repayment by appointing at least 2 independent appraisal companies,including requesting all information about the said land. 3) The Management Board will consider the information presented by legal adviser and the independent appraisers, and study the impacts involved under related laws, then forward its opinion of the matter for the Board of Directors'further consideration. Please be informed accordingly. Very truly yours, (Mrs.Pojanard Phanaskhao)(Mr.Phietoon Trivijitkasem) Authorized Director