Ref. WORK 010 / 2005 May 13, 2005 Re : Clarification of the financial performance for 1st quarter of fiscal year 2005 ended March 31,2005. To : President of the Stock Exchange of Thailand. Workpoint Entertainment Public Company Limited ("the company) are pleased to submit herewith the consolidated and company financial statements for 1st quarter of fiscal year 2005 ended March 31,2005 . The operating results compared to the year ended March 31,2004 are as follow : The operating performance of the company and its subsidiaries for 1st quarter of fiscal year ended March 31,2005 has shown the net profit of 61.15 Million Baht , which increased by 13.77 Million Baht when compared to the 47.38 Million Baht for the 1st quarter of fiscal year 2004 or increased 29.07% that represented the operating potential and profitability ability of the company. The main reasons of such increase are as follow : - Revenue For the 1st quarter of fiscal year 2005 ,the company had total revenue for the total amount of 243.61 Million Baht , which increased by 61.38 Million Baht when compared to the total revenue of 182.23 Million Baht as the same period of previous year or increased 29.07% . The source of revenue came from 1. TV program production business , it had total revenue of amount 233.02 Million Baht which increased by 58.94 Million Baht when compared to the 174.08 Million Baht for the 1st quarter of fiscal year 2004 or increased 33.91% due to the increasing of broadcasting times from 745 min / week for the 1st quarter of fiscal year 2005 to 1,205 Min / week for the same period of fiscal year 2004 or increased 61.74% . 2. Publishing business , it had total revenue of amount 5.71 Million Baht for the 1st quarter of fiscal year 2005 compared with 2.76 Million Baht for the same period of fiscal year 2004 or increased 106.88%. 3. In the 1stquarter of this year, the company established the two new companies, Campordee Co.,Ltd and Ittirit House Co.,Ltd., of which the company holds 60% in each company. It had made more total revenue of amount 0.64 Million Baht to the company. - Cost of production Because of the increasing of broadcasting times and launching to produced products of the subsidiaries company , it made higher cost of production for the 1st quarter of fiscal year 2005 of total amount 112.80 Million Baht which increased by 31.79 Million Baht when compared to the cost of production of 81.01 Million Baht as the same period of last year or increased 39.24%. - Selling and Administration Expenses For the 1st quarter of fiscal year 2005, the company had total selling and administration expenses for the total amount of 49.29 Million Baht which increased by 16.30 Million Baht when compared to 32.99 Million Baht as the same period of last year or increased 49.39%. - Corporate Income Tax For the 1st quarter of fiscal year 2005 , the company paid corporate income tax of total amount 21.76 Million Bath which increased by 0.92 Million Bath when compared to 20.84 Million Bath as the same period of previous year or increased 4.4%. Because of the company had received the privilege for listed company ,then it had reduced corporate income tax rate from 30% per annum to 25% per annum. Please be informed accordingly. Best Regards, Workpoint Entertainment Public Company Limited ............................................................ ( Mr.Kanchit Kawachat) Executive Vice President - Finance