SET Announcements

Tor. 10/2548 August 11, 2005 Subject:Submission Loxley Public Company Limited's audited Interim Financial Statements for the period ended June 30, 2005 To: President The Stock Exchange of Thailand Attachment: The Company's audited interim financial statement and consolidated financial statement for the period ended June 30, 2005 Loxley Public Company Limited ("the Company") would like to submit its audited interim financial statement and consolidated financial statement for the six-month periods ended June 30, 2005. The Company has an operating result changed more than 20% in consolidated financial statement of first half year period. The significant details are as following: (1) Gross profit decreases in the amount of Baht 157 million mainly caused by drop in gross profit 4.3% for the first half year compared to the same period at previous year. Income recognition from portion of projects in Information Technology group is less than Trading group which is high competition, but low gross profit margin. However, the Company expects increasing in recognize income for the second half year period from contracts on hands. Moreover, the Company has extra expenses from re-organization in order to enhance its flexibility of businesses. (2) Set up allowance for doubtful trade account receivables of the Company and subsidiaries in the amount of Baht 81 million and Baht 20 million, respectively. These allowances are set up due to debt pursued and legal action taken with trade accounts receivable which is time consuming. The Company has to set up these allowances with intention to maintain conservative policy. However, the management continues a stiff effort to follow up these debts for the Company's utmost benefit. (3) Set up allowance for impairment in value of foreign investment and others of the Company and subsidiaries in the amount of Baht 84 million and Baht 70 million, respectively. These allowances are set up due to the long-term investment projects; however, the return of net present value is not as much of the investment. The Company acknowledges setting up the allowance for impairment in value of this investment. Nevertheless, this business is suitable to invest onward. The Company believes to obtain the return in the near future. Provisione for doubtful accounts and provision for impairment in value of (2) and (3) are complied with GAAP which are not affected to operating cash flow. Furthermore, the Company has many major projects such as Service of Lottery-Game System project with the Government Lottery Office and other projects on hands approximately Baht 6,000 million, including sufficient working capital and investment in marketable securities. Thus, the Company confidents that its business operating liquidity is sufficiency to furthering Company and shareholder's growth and prosperity. Please be informed accordingly. Yours sincerely, Loxley Public Company Limited (Mr.Pichai Mooputtarak) Secretary of Board of Director