Clarification for the difference greater than 20% in P/L

-Translation-

11 June 2007

Subject: Clarification for the difference greater than 20% in comparative income statements

To : President The Stock Exchange of Thailand

We, Pico (Thailand) Public Co., Ltd. wish to offer our clarification for the difference greater than 20% in the operating performance for the first quarter 2007 relative to the corresponding period of the previous year.

Consolidated financial Statements
Consolidated revenue of the group ending 30 April 2007 amounted to Baht 523 million representing a Baht 15 million decrease over the same period of the previous year. This decline dued mainly from the political uncertainty reflecting customer decision. Gross profit was Baht 114 million, a comparative decline of Baht 13 million due primarily from higher cost of services. 1/4 of the revenue for this period come from Museum exhibit which contributed low gross margin. In addition, we have invested in some stands in "Bangkok International Motor Show' 07" and to be amortized in the future. The selling and general administrative expenses came to Baht 85 million, a comparative increase of Baht 9 million due from our restructuring in human resource and building renovation. The consolidated net income therefore declined from Baht 39 million to Baht 23 million or 42% lower than the performance of the same period of the previous year.

Financial statements for the separate company
Net income for the separated company financial performance increased from Baht 39 million to Baht 50 million a relative increase of 29% over the same period of last year. This was due to the dividend income received from the subsidiaries in accordance with the revision of accounting policy notification That Accounting Standard (TAS) No. 44. The company's revenue for the 6 month ending 30 April 2007 including the Baht 485 million dividend received from subsidiaries, amounted to Baht 29 million with gross profit margin of Baht 97 million and the selling and general administrative expenses of Baht 71 million resulting in a net income of Baht 50 million. Incidentally, without the said accounting policy change, the net income would be at Baht 21.3 million.

Please be informed accordingly.

 

Yours faithfully,

(Signed) -Signature-

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Mr. Silchai Kiatpapan
Chief Executive Officer