1st March, 2006. The President The Stock Exchange of Thailand Dear Sir, Clarification on Operating Result for the Year 2005 The Company's operating results for the year 2005, which has been certified by external auditors, showed a net profit of THB 12.49 m,a decrease of THB 41.13 m from the same period of last year. The reduction in net profit in excess of 20% from the same period last year was due to the following reasons; 1.The ongoing corporate restructuring and the installment of new equipments had reduced the need for a number of job positions. As a result, the Company had initiated the Voluntary Retirement Program which had resulted in an additional expense of THB 18.2 m. 2.Price competition in the carbonated soft-drinks market,especially through modern trade channels,continues to erode operating margins.But at the same time key PET products sold to the channels, most notably the 1.25 litre and 2 litre, had experienced a significant cost increase. 3.The increase in the price of fuel and bunker oil had adversely affected the costs of raw materials such as plastic resins and pre-forms. This also had a direct impact on our production costs,in particular the PET products, ie.the 1.25 and 2 litre packages and transportation costs. The overall cost increase totaled THB 28 m. While the costs were spiraling the selling prices of all products were frozen to comply with the request of the Internal Trade Department, Ministry of Commerce. 4.Selling and administrative expenses for the year had also increased substantially from 2004. This was partly due to marketing and sales promotions expenses conducted with our customers and to higher salary expenses as the Company has been recruiting a number of key executives to cope with rapidly changing environments. 5.The Tsunami, which took place at the end of 2004, along the Andaman Coast that covered 6 provinces in the South had caused severe widespread damages to the Company's customers. The ongoing unrest in the three southernmost provinces has been causing disruption to the Company's sales operation. Major floods, that swept over many provinces in the South for a longer period than normal destroyed properties and left many homeless. The on-again, off-again Bird Flu caused some panic,especially among foreigners. All the afore mentioned reasons drove away local and foreign tourists from holiday resorts that they intended or were planing to visit,resulting in a significant drop in the flow of tourists to the South. The above are the main reasons for the decline in the Company's net profit Year 2005. Yours faithfully, For Haad Thip Public Company Limited (Mrs.Pariya Chirabandhu) (Ms.Lilly Manabhongse) Director Director Office of the Managing Director Tel.0-2391-4488 Ext. 108