Ref. WORK 007/2007 May 14, 2007 Re : Clarification of the operating result for the Quarter ended March 31, 2007 To : President of the Stock Exchange of Thailand Workpoint Entertainment Public Company Limited ("The Company") is pleased to submit herewith the consolidated and company financial statements for the Quarter ended March 31, 2007. The operating results compared to the Quarter ended March 31, 2006 are as follows: The operating performance of the company and its subsidiaries for the Quarter ended March 31, 2007 showed the net profit of 45.62 Million Baht which decreased by 14.88 Million Baht when compared to 60.51 Million Baht of the Quarter ended March 31, 2006, or decreased by 24.60%. The main reasons of such decrease are as follow: Revenue For the total revenues of the Quarter ended March 31, 2007 were 303.62 Million Baht that were generated from three types of business which were Television Business of 285.55 Million Baht, Publishing Business of 3.2 Million Baht and Animation/Computer Graphic Business of 3.84 Million Baht. The proportion of each business type's revenue to total revenue was 94.1%, 1.1% and1.3%, respectively. The total revenues were decreased by 0.77% from the same period of year 2006 which were 305.97 Million Baht. The performance summary of each business is as following: Television Business The revenue from Television Business of the Quarter ended March 31, 2007 was 285.55 Million Baht which was increased by 5.37% from the same period of last year which was 270.97 Million Baht. The TV advertising expenditure (TV Adex) has increased only 3.2% from the same period of last year because of political issue and economic instability. Those two factors were mainly affected to consumer confidentiality. Publishing Business The revenue from Publishing Business of the Quarter ended March 31, 2007 was 3.2 Million Baht which was decreased by 54.53% from the same period of year 2006 which was 7.03 Million Baht. The declining of revenue was the same direction as the magazine advertising expenditure (Magazine Adex) which dropped 8.2% from the same period of year 2006. Animation and Computer Graphic Business The Animation and Computer Graphic business revenue of Quarter ended March 31, 2007 was 3.84 Million Baht. It was dramatically increased by 161.22% from the same period of last year which was 1.47 Million Baht. The increasing of revenue was from the increasing of Computer Graphic Production fee from many movies, and the additional production fee from Advertising Agency for creating TV Commercial advertisements. Motion Picture Business The company is filming the second movie "Teng-Nong-Khon-Maha-Here". The program is expected to be shown at the end of May 2007. Cost of Productions The total cost of productions was 239.37 Million Baht which was increased by 8.40% from the same period of last year which was 220.82 Million Baht. The summary of cost in each business is as following: Television Business The cost of Television Business of the Quarter ended March 31, 2007 was 159.74 Million Baht which was increased by 25.01% from the same period of last year which was 127.78 Million Baht. The increasing of Cost was mainly from the increasing of recording expenses. Additionally, the company has been fully booked the depreciation of the new head office and studio, which has been completed at the end of year 2006. Publishing Business The cost of Publishing Business of the Quarter ended March 31, 2007 was 1.65 Million Baht which was decreased by 63.41% from the same period of last year which was 4.51 Million Baht. The decreasing of cost was the same direction as the revenue. Animation and Computer Graphic Business The cost of Animation and Computer Graphic business of the Quarter ended March 31, 2007 was 4.98 Million Baht which was increased by 4.55 Million Baht from the same period of last year which was 0.43 Million Baht. The increasing of cost was mainly from the increasing of production cost for the animation movie. Motion Picture Business The cost of Motion Picture Business of the Quarter ended March 31, 2007 was 0.32 Million Baht which was decreased 13.04 Million Baht from the same period of last year which was 13.36 Million Baht. The company is filming the second movie "Teng-Nong-Khon-Maha Here". The program was expected to be shown on 31 May 2007 so, the company has no any movie cost in Quarter 1/2007. The Selling and Administration Expense The selling and administration expense was 72.68 Million Baht, increased by 2.76% from the same period of last year which was 74.74 Million Baht. The decreasing of selling and administration expense was mainly from the decreasing of selling expense, which was the same direction as the revenue. Please be informed accordingly Best Regards, Workpoint Entertainment Public Company Limited (Mr. Kanchit Kawachat) Executive Vice President-Finance