Ref. WORK 1 / 2004 November 10, 2004 Subject : Clarification of the operating result for the three-month and nine-month period ended September 30, 2004 To : The President The Stock Exchange of Thailand Attachment : Form 45-3 and Financial statements for the three-month and nine-month period ended September 30, 2004 (Thai and English version) Workpoint Entertainment Public Company Limited ("the company") would like to submit the financial statement for the three-month and nine-month period ended September 30, 2004 and the clarification of the operating result to the Stock Exchange of Thailand. The management would like to clarify the company's and subsidiary's performance for the three-month and nine-month period ended September 30, 2004 as follow: For the nine-month period ended September 30, 2004 compared to the same period of the prior year The company has main business in TV program production. For the nine-month period of Year 2004, the company had additional 4 TV programs when compared to the same period of the prior year. Due to the additional TV program, the increasing of advertising rate and the popularity in TV program lead the company to have the total revenues for the total amount of 633.98 million Baht increasing from the same period last year that had total revenues for the amount of 457.88 million Baht or equal to the growth rate of 38%. For the nine-month period of Year 2004, the company had the net profit for the total amount of 153.31 million Baht increasing from the same period last year that had net profit for the amount of 70.60 million Baht or equal to the growth rate of 117%. For the above reasons, the total revenues and net profit for the nine-months period ended September 30, 2004 has been increased from the same period of last year. For the third quarter of Year 2004 compared to the second quarter of Year 2004 (Due to the company did not have quarterly financial statement in Year 2003) For the third quarter of Year 2004, the company had total revenues for the total amount of 219.07 million Baht from two main businesses, which were TV program production for 213.53 million Baht and Publishing for 5.24 million Baht. Which was slightly decreasing from the second quarter of Year 2004 that had total revenues of 232.68 million baht because of the declining of the number of tapes of TV program on air in the third quarter compared to the second quarter due to the broadcasting of Olympic game 2004. And also the low season effect in the third quarter of the industry. The company's gross profit margin had increasing from 46% in the second quarter of Year 2004 to 55% in the third quarter of Year 2004 due to the declining of the prize money expense compared to the second quarter in Year 2004. Which had the winner of the "Todsagun game" who won the prize money for the total amount of 10 million Baht and also the efficiency of the cost control in production process. For the third quarter of Year 2004, the company had net profit for the total amount of 58.16 million baht or equal the net profit margin of 27% which was increasing when compared to the second quarter of Year 2004 that had net profit for the total amount of 47.77 million Baht or equal the net profit margin of 20.53%. The growth of net profit equals to 22% that represented the operating potential and the profitability ability of the company. The earning per share had increased from 0.30 Baht per share in second quarter of Year 2004 to 0.36 Baht per share in the third quarter of Year 2004. Please be informed accordingly. Your Faithfully, (Mr. Pongkarn Juntranggur) General Manager Workpoint Entertainment Public Company Limited