November 16, 1998 The President The Stock Exchange of Thailand 62 Ratchadapisek Road Klong Toey, Bangkok 10110. Fax : 654-5649 Dear Sir, We are attaching herewith our Interim Financial Statement for the 3rd Quarter as at 30th September 1998 and that of 1997 as required by the Stock Exchange of Thailand. The operation results of the 3th quarter period have dropped more than 20 percent when compared to previous year's. The reasons are as follows:- 1. The depressed economy in general has deepened further as never before, especially the disposable income of those whose earnings depended on the price of rubber which, as is known, has decreased drastically. Our products were not as 'affordable' as before and were beyond 'affordability' by the rising unemployment populace. 2. In the 3rd Quarter of 1997 due to an oversight of the supplier of cocentrates, we were not charged the new, verbally agreed higher price. The new higher price of concentrates was charged by the supplier in December 1997, retroactive from the date when higher price was mutually agreed. In the 3rd Quarter of 1998, the new concentrate price was correctly recorded, resulting in significantly higher production cost when compared to the 3rd Quarter of 1997. ...2/ Haad Thip Public Company Limited - 2 - 3. Cost of goods bought from fellow bottler went up because of higher raw material costs, higher absolute amount of VAT and higher absolute amount of Excise Tax, all of which took place in 1997. These higher costs could no longer be borne by the fellow bottler so they passed on the incremental costs to us in the 3rd Quarter of 1998, resulting in higher cost of goods for us while we did not accordingly pass on the additional cost to consumers. 4. In the 3rd Quarter it was the beginning of heavy rainy season in the South. Many provinces, such as Chumporn, Suratthani and Nakorn Srithamaraj were flooded, hindering deliveries of our product to outlets in flooded areas. We trust the above explain clearly why our 3rd Quarter results were below that of the corresponding period in 1997. Yours faithfully, Sec.Lt. (Phairoch Rattakul) Managing Director PR/cu