Company performance for the second quarter 2007 and the

10 สิงหาคม 2550
(Translation) August 10, 2007 Subject : Company performance for the second quarter 2007 and the effect of the change in accounting for investment in subsidiary Attention : Director and Manager of the Stock Exchange of Thailand Thanulux Public Company Limited would like to inform the performance of the company as stated in the second quarter and the first six months as of June 30, 2007 as below: - The Baht 468.2 million sale revenue of the company and its subsidiary of the second quarter 2007 decreased from the same period last year by Baht 119.38 million or 20.32%, net profit of Baht 37.31 million decreased from the same period last year by Baht 36.19 million or 49.24%. - The Baht 981.24 million sale revenue of the company and its subsidiary of the first six months 2007 decreased from the same period last year by Baht 186.93 million or 16%, net profit Baht 112.92 million decreased from the same period last year by Baht 53.47 million or 32.14%. 1. The second quarter 2007 local sale decreased from the same period last year, by Baht 110.78 million or 31.55% and the first six months 2007 decreased by Baht 194.90 million or 26.73%. 2. Effects from the Thai Baht strengthening, the company had more export than import, resulting in lesser profit to the company. 3. For the first six months 2007, Cost of goods sold, administrative and selling expenses decreased but relatively increased in term of percentage to sales. Moreover the quantity of the export increased by 6% whiles the export figures increased by only 2% caused by the Thai Baht strengthening. In compliance with TAS 44, the company changed its accounting policy in the separate financial statement from the equity method to the cost method in first quarter 2007 for investment in its subsidiary. Thus the company restated its financial statement by using historical cost as the cost of investment in its subsidiary as stated in the separate financial statement. This adjustment caused the net income on the separate financial statement to differ from that reported in the consolidated financial statement. Therefore the company would like to clarify with the additional information as follows: 1. The second quarter 2007 ended June 30,2007, net profit in the separate financial statement of Baht 36.29 million decreased by Baht 1.02 million (decreased by Baht 0.01 per share) from the net profit of Baht 37.31 million in consolidated financial statement. 2. The first six months ended June 30, 2007, net profit in the separate financial statement of Baht 110.06 million decreased by Baht 2.85 million (decreased by Baht 0.02 per share) from the net profit of Baht 112.92 million in consolidated financial statement. 3. The second quarter 2006 ended June 30, 2006, net profit in the separate financial statement of Baht 83.10 million increased by Baht 9.60 million (increased by Baht 0.08 per share) from the net profit of Baht 73.50 million in consolidated financial statement. 4. The first six months ended June 30, 2006, net profit in the separate financial statement of Baht 175.02 million increased by Baht 8.63 million (increased by Baht 0.07 per share) from the net profit of Baht 166.39 million in consolidated financial statement. 5. The effect from the restatement in the separate balance sheet caused the beginning retained earnings as of January 1, 2007 increase by Baht 1.51 million and decrease the beginning retained earnings as of January 1, 2006 by Baht 4.37 million. The cumulative effect of the change in accounting policy has been presented in the statement of changes in shareholders equity, of the separate financial statement. However, the change of accounting policy affects only the separate financial statement, not the consolidated financial statements or business fundamentals. Please kindly acknowledge accordingly and publicize as appropriate. Faithfully Yours, Varindr Leelanuwatana, Dusadee Soontrontumrong (Mrs. Varindr Leelanuwatana, Ms. Dusadee Soontrontumrong) Managing director, Deputy managing director