15th August, 2005. The President The Stock Exchange of Thailand Dear Sir, Clarification on Operating Result for the Second Quarter of 2005 The Company's operating results for the second quarter of 2005, which has been certified by external auditors, showed a net profit of THB 6.05 m, a decrease of THB 20.08 m or 76.85% from the same period of last year. The reduction in net profit was due to the following reasons; 1. Net sales revenue significantly fell by 6.82% from THB 551 m in Q2 of 2004 to THB 513.4 m in the second quarter of this year. This is a direct result of the present unrest that is not occurring only in the 3 southernmost provinces of Yala, Pattani, and Narathiwas, but also spreading into other areas of the Southern Peninsular. Even in HatYai,a commercial town in the province of Songkhla, the airport and other commercial properties were attacked by terrorist bombings in April which resulted in the loss of consumer confidence. Tourists, both foreign and Thai, have disappeared in great numbers due to concerns over the safety of life and property. 2. The aftermath of the tsunami has left a great negative impact among the 6 affected areas,namely,Phuket,Phang-Nga,Krabi,Trang,Satun,and Ranong. Reconstruction is taking place but in many areas progress is still slow. A large number of our customer outlets were destroyed and many stopped doing business altogether. Spending power declined leading to lower consumption of non-essential goods,softdrinks included. According to AC Neilssen,carbonated soft-drinks consumption in Q2 of 2005 has a negative growth of -2.6% compared to the same period of last year. The problem is further exacerbated by the fear of more earthquake,and possible tsunami which prevent consumers from visiting the Andaman coastal areas. 3. The increase in fuel prices since the end of last year had resulted in the increase in the costs of raw materials such as plastic resins and pre-forms. Fuel and bunker oil cost increase also had a direct impact on our production and transportation costs. 4. Price competition in the carbonated soft-drinks market,especially through modern trade channels,continues to erode operating margins. If the Company does not participate in these heavy discounts, there will be massive transshipment of the products from other areas in the north outside our franchise territory. 5. Selling and administrative expenses for the quarter increased by THB 15.85 m or 9.90% from the same period in 2004. This was largely due to marketing and sales promotions expenses conducted with our customers. The above are the main reasons for the decline in the Company's net profit in the second quarter of this year. Yours faithfully, For Haad Thip Public Company Limited Sec.Lt. (Phairoch Rattakul) Managing Director Office of the Managing Director Tel.0-2391-4488 Ext.108