SET Announcements

Tor9/2547 2 July 2004 Re : Additional clarification on non-compliance with Accounting Standards To : President The Stock Exchange of Thailand References : (1) SEC's Letter No. Kor Lor Tor. Chor. 821/2547 dated 16 June 2004 (2) Loxley Public Company Limited (the "Company")'s letter dated 17 June 2004 (3) Loxley Public Company Limited (the "Company")'s letter dated 30 June 2004 Reference is made to the Company's letter to the Securities and Exchange Commission (the "SEC") giving clarification on non-compliance with the Accounting Standards, the details of which appeared in the referenced letter in (3). Today, the Company was granted kind consideration from the SEC to allow it meet and provide clarification in person with respect to the details of the referenced letter in (3). Further to the discussion and consultation with the SEC, conclusion could be drawn and questions clarified. The SEC well understood the Company's clarification on all issues raised in the SEC's letter referred in (1) instructing the Company to provide clarification, except the issue in Item 1 of the letter. It was agreed and understood that Loxley Information Services Co., Ltd. ("LoxServe") is not a financially troubled company which required to comply with Accounting Standards regarding the restructuring of troubled debts. However, the Company accepted the SEC's suggestions to have an independent financial advisor to estimate fair value of the acquired investment, namely, the investment in LoxServe and CS Loxinfo Public Company Limited (CS-LoxInfo), at the aggregate value of Baht 500 Million. Preliminarily, the Company recorded both investments at the acquiring costs, so as to be able to break down the fair value of each of the two companies. Please be clarified accordingly. We would appreciate if the SEC could consider and give relaxation to the Company for securing an independent financial advisor to estimate the fair value of both companies for your further consideration. Yours sincerely, Loxley Public Company Limited (Mr. Dhongchai Lamsam) President