The change in theoperating results in excess of 20%

A/C 348/2003 27 November 2003 Director and Manager The Stock Exchange of Thailand Subject: Clarification of the change in the operating results according to the financial statements in excess of 20%of net profit for the year ended September 30,2003 The Company's operating results showed a net profit of Baht 155.02 million in the financial statements for the year ended 30 September 2003, being an increase in net profit of Baht 39.36 million or 34.03% 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.The Company's earnings from the rental income from operating lease and income from financial lease showed a figure of Baht 1,016.74 million, or an increase over of the preceding year of Baht 207.54 million or 25.65%, as a result of its continuation to expand the assets for new leases. In terms of direct cost and expenses, the depreciation cost represented the Company's main expenses. In 2003, The Company's total cost and expenses amounted to approximately Baht 874.90 million, being an increase from the previous year of Baht 152.54 million or 21.12%. This increased rate was in line with the rise in the Company's revenues. Expenses in 2003 decreased as a result of the 2002 revaluation of the value of the property foreclosed by independent professionals whereby an increase in the allowance for a decline in the value of the property foreclosed of Baht 11 million was made to comply with the accounting and conservative principles. In 2003,it was not necessary for the Company to bear the burden of such allowance as the previous allowance was adequate. 2.During the year, the Company issued debentures under the name of Phatra Leasing Public Company Limited, No.1/2003, with maturity redemption date in 2006 in the total amount of Baht 900 million, which were used to expand the lease assets as well as to repay the existing loans which became due, resulting in the Company's ability to reduce the interest cost. Accordingly, for your kind information. Yours sincerely, (Mr.Krirkchai Siribhakdi) President