Clarification of the change in excess of 208f net profit

A/C 0246/2003 13 August 2003 Director and Manager The Stock Exchange of Thailand Subject: Clarification of the change in the operating results according to the interim financial statements in excess of 20%of net profit for the third quarter ended June 30,2003 The Company's operating results showed a net profit of Baht 41.96 million in the interim financial statements for the period ended 30 June 2003, being an increase in net profit of Baht 11.39 million or 37.27% against the same period for the previous year, or an excess of 20%. The Company would accordingly like to clarify the reasons for the said change as follows: 1.Total revenue increased from the same period of the previous year in the amount of Baht 70.28 million or 31.90% being the same direction as an increase in the cost and expenses of Baht 55.20 million or 30.78%, due to the Company's ability to expand the lease assets and to acquire new client. Such an increase was correlated to the growth in total sales of the automobile industry, the trend of which appears to be continuing 2.The issuance of debentures by The Company under the name of Phatra Leasing Public Company Limited No.1/2003 with the maturity redemption date in 2006 in the total amount of Baht 900 million which were used in the expansion of the lease assets as well as the repayment of existing loans which became due, resulting in the Company's ability to reduce its interest cost. Accordingly, for your kind information. Yours sincerely, (Mr.Krirkchai Siribhakdi) President