OPERATING RESULTS

A/C 3099/2541 November 27, 1998 Managing Director The Stock Exchange of Thailand Subject : Clarification of the operating result of year-ended financial report as of September 30, 1998 with more than 20 percent profit decline compared with prior year. PHATRA LEASING PUBLIC COMPANY LIMITED would like to clarify for 20% decline of profit in the year-ended financial report as of September 30, 1998 compared with prior year as follows: 1) The change of operating and finance lease contract rental income recognition method for lessees who had not paid rentals for more than 3 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 basis only for 3 months on the ground of conservatism of revenue recognition. 2) An increase in allowance for doubtful account, applied by prudent approach, for estimated loss incurred in the collection of all receivables. 3) An increase in provision for decline in value of assets held for lease under operating lease contracts for those lessees who had not paid rental for more than 3 months equal to the estimated recoverable amount of assets based on the average appraised value less estimated discount. Yours sincerely, ( Krirkchai Siribhakdi ) President