(Translation) Subject: Explanation of the change in Net Profit of Q1/2006 greater than 20% compared with the same quarter of the previous year To: President of the Stock Exchange of Thailand CC: Secretary-General of the Securities and Exchange Commission With reference to the Company's Q1/2006 Financial Statements ended March 31,2006 submitted to the SET on May 15,2006. The Company would like to inform the reasons why the operating results in Q1/2006 show the Net Loss of 978,675 Baht which decrease more than 20% compared with the same period in 2005. The main reasons of this consequence are as followed, 1. Total revenues were reduced from 332 million Baht to 280 million Baht (15.6% reduction) due to late delivery. Customer's locations were not ready to erect the transformers so the shipments of them had to be postponed. Also, for some export sales orders, the schedule of the ocean shipments were delayed. All of them will be delivered within Q2 in 2006. 2. Percentage of gross profit margin was decreased from 21.6% to 18.6%. It was derived from the increase of revenues in foreign market from 11.5 million Baht to 128.1million Baht. The profit margin of transformers in foreign market was low since the Company has implemented the marketing strategy as (market-penetration pricing) in this market. 3. Selling and Administrative expenses were increased from 36.6 million Baht to 45.8 million Baht (25.1% increment) due to the increase of the expenses for export shipments and the increase of personnel expenditures. The expenses for export shipment were increased from 0.64 million Baht to 7.42 million Baht as a result of the increment of revenues in foreign market. The Expenditures in personnel were also increased to support the growth of Company. 4. 2.4 million Baht was realized as loss in foreign exchanges rate compared with the gain of 1.7 million Baht in the same quarter last year. Please be informed accordingly. Yours Faithfully, (Mr. Upakrom Thaweephoke) Deputy Managing Director (Finance and Marketing)