CLARIFICATION OF THE OPERATING RESULT OF FINANCIAL STATEMENT

A/C. 2172/2541 August 14, 1998 Managing Director The Stock Exchange of Thailand Subject: Clarification of the operating result of financial statements for the nine-month periods ended June 30, 1998. PHATRA LEASING PUBLIC COMPANY LIMITED would like to clarify for 20% decline of profit in the financial statements for the nine-month periods ended June 30, 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 basis only for 6 months on the ground of conservatism of revenue recognition. 3) An increase in provision for doubtful account. 4) The decline of finance lease contract income. For your acknowledgement. Yours sincerely, (Krirkchai Siribhakdi) President