SET Announcements

Tor. 3/2549 February 28, 2006 Subject:Submission the Financial Statements and Explanation of Operating Results for the year ended December 31, 2005 To: President The Stock Exchange of Thailand Attachment: Copy of the Company Financial Statement and Consolidated Financial Statement for the year ended December 31, 2005 Loxley Public Company Limited and Subsidiaries (the "Company") would like to submit its financial statements for the year ended December 31, 2005. The explanations of operating results are as follows: 1. Operating results 1.1 In 2005 Sales of products and services was equivalent to Baht 10,249 million compared to the previous year at Baht 10,011 million and the gross profit was Baht 1,211 million decreased from the last year at Baht 401 million mainly resulting from decreasing in gross profit of both consumer trading group and IT group which was effected by increasing in cost of goods sold caused from rising in oil price. Besides the operating results of cellular phones unit was also facing loss due to the restructured business plan and sell low turnover in inventory within a year. 1.2 Selling and administrative expenses increased in the amount of Baht 313 million, mainly from set up provision for both declining in value of inventories and doubtful accounts in the amount of Baht 137 million. Furthermore, the Company set up provision for declining in value of investments at Baht 154 million, mostly from foreign long-term investment. 1.3 The Company reported decrease in share of profits from investments in associated companies using the equity in the amount of Baht 152 million due to dropped in the profit of lubricant products which was impacted from the raw material oil price boost up and the Company is unable to increase such price promptly by reason of goods and services price control policy from government. 1.4 As the aforementioned above, the Company has net operating loss in the amount of Baht 653 million or 0.33 Baht per share compared to operating profit from the previous year in the amount of Baht 202 million or 0.1 Baht per share. 2. Financial Status The Company's total assets was equivalent to Baht 10,463 million the total liabilities was Baht 6,338 million and total shareholders' equity was Baht 4,125 million. The total assets and total liabilities decreased from the last year in the amount of Baht 1,511 million and Baht 1,714 million, respectively as a result of drop in retained earnings from operating results in 2005 and decreased in unrealized gain and loss from revaluation of available-for-sale securities in the amount of Baht 776 million. Please be informed accordingly. Yours sincerely, Loxley Public Company Limited (Mr.Pichai Mooputtarak) Secretary of Board of Director