The President The Stock Exchange of Thailand 62 Ratchadapisek Road Klong Toey, Bangkok 10110 Tel : 229-2000, 654-5656 Fax : 654-5649 August 16, 1999 Dear Sir, Haad Thip Plc. Clerification Operating Results for The Second Quarter of 1999 In accordance with the regulations of the Stock Exchange of Thailand, we hereby submit our interim report of the Financial Statements on the 2nd quarter for the period ending 30th June 1999 and that of 1998. We would like to point out that the causes for the decline in net profit of more than 20% for the 2nd quarter of 1999 compared to the same period of the previous year are as follows: 1.The continued deterioration of the economy, particularly in the Southern Region; prices of agricultural products, such as rubber, palm oil and fruits have been falling steadily due to the unpredictability of the weather and the price of rubber and palm oil have declined from 56 to 14 Baht for the former and 5 to 1.60 Baht for the latter. Besides, the two major crops price for coffee beans and all other fresh fruits also fell. All these have adversely affected Haad Thip's business, as the masses have less money to spend resulting from reduced income. Consumers are more selective in their spending pattern. Even though the tourism industry has enjoyed some growth in the South but that only encompassed 2 provinces i.e. Phuket and Samui. 2.The situation on the employment side has not improved, as most company in the South are adversely affected as stated above. There are no new job creation opportunities and in many cases, same companies have to cut down their sizes by reducing their work force or, worst still, laid off workers in large number. With the above mentioned reasons the sales volume of soft drinks and net profit from the business has dropped more than 20% even with the strict on-going expenditure control. Yours sincerely, Sec.Lt. (Phairoch Rattakul) Managing Director Office of the Managing Director Tel. : 392-9984-5 Ext.108