[Translation] Ref. PDI/BK-02-045/2004 16 August, 2004 To : President The Stock Exchange of Thailand Re.: Clarifications on company's performances in the second quarter and first-half of 2004 Attached are a copy each of Thai and English version of the unaudited interim financial statements (both consolidated and on the company only) of Padaeng Industry Public Company Limited for the second quarter and six-month period ended 30 June 2004 together with clarifications on the company's performances during the said periods for the SET's information as follows: The company's total sales volume increased by 6.3% during the 6-month period, to 57,251 metric tons and the revenues from sales and services was Bt2,827.9m a 24.3% increase from the same period of 2003. The company earned a net profit of Bt130.34m which results mainly from the increase in LME zinc price and the increase in zinc silicate share from Mae Sot mine as a result of the full scale flotation which has been in operation since the beginning of 2004. However major operating expenses including imported raw material, electricity, fuel and freight costs, continued to rise from last year. With these factors in mind, the company reported as follows: From the company's statement of income on Equity Method, the company's sales revenues and services was Bt1,567.0m which increased from the same quarter of year 2003 by Bt432.2m or a 38.1% increase. There was the profit of Bt47.0m or a net profit per share of Bt0.21 compared to a loss per share of Bt0.17 in the same period of year 2003. From the company's consolidated statement of income, total sales from revenues and services was Bt1,569.6m which increased by Bt432.5m or a 38.0% increase from the same quarter of last year. There was net profit of Bt45.9m or a net profit per share of Bt0.20 compared to a loss per share of Bt0.17 in the same period of year 2003. From the statement of income (Equity Method) for the six-month period, the company's total sales from revenues and services was Bt2,823.4m which increased from the same period of year 2003 by Bt553.0m or a 24.4% increase. There was net profit of Bt132.2m or a net profit per share of Bt0.58 compared to a loss per share of Bt0.02 in the same period of year 2003. From the company's consolidated statement of income, total sales from revenues and services was Bt2,827.9m which increased from the same period of last year by Bt1552.6m or a 24.3% increase. There was net profit of Bt130.3m or a net profit per share of Bt0.58 compared to a loss per share of Bt0.03 in the same period of year 2003. Please be informed accordingly. Yours truly, - Signature - (Pinit Vongmasa) Chief Executive Officer Board Secretary Division Tel. 0 2661 9900 Ext. 1402, 1501 Fax. 0 2661 9946 Page 1 of 2