THE OPERATING RESULT OF SECOND QUARTER (AS OF MARCH 31,1998)

A/C. 1160/2541 May 15, 1998 Managing Director The Stock Exchange of Thailand Subject: Clarification of the operating result of second quarter-ended financial report as of March 31, 1998. PHATRA LEASING PUBLIC COMPANY LIMITED would like to clarify for 20% decline of profit in the second quarter-ended financial report as of March 31, 1998 compared with prior year as follows: 1) Slowingdown asset growth due to conservative lease policy. 2) The change of rental income recognition method for lessees who had not paid rentals for more than 6 months,which was previously recognized as income on the accrual basis over the term of the leases, to the recognition of such income on the accrual 3) An increase in provision for doubtful account. 4) The decline of finance lease contract income. For your acknowledgement. Yours sincerely, (Krirkchai Siribhakdi) President