Ref. WORK 011/2007 August 14, 2007 Re: Clarification of the operating result for the Quarter ended June 30, 2007 To: President of the Stock Exchange of Thailand Attachment: Business Performance Report (Form F45-3) and the consolidated and company financial statement for quarter ended June 30, 2007 Workpoint Entertainment Public Company Limited ("The Company") is pleased to submit herewith the consolidated and company financial statements for the quarter ended June 30, 2007. The operating results compared to the quarter ended June 30, 2006 are as follow: The operating performance of the company and its subsidiaries for the quarter ended June 30, 2007 has showed the net profit of 80.07 Million Baht which decreased by 3.42 Million Baht when compared to the 83.49 Million Baht of the quarter ended June 30, 2006 or decreased by 4.0%. The main reasons of such decrease are as follow: Revenue For the total revenues of the quarter ended June 30, 2007 were 373.54 Million Baht that were generated from four main business which were TV business for 327.37 Million Baht, Publishing business 6.55 Million Baht, Animation business 1.29 Million Baht, Movie business 36.56 Million Baht and other revenues 1.77 Million Baht, increased by 8.0% when compared to the 345.86 Million Baht of the quarter ended June 30, 2006. The main reasons of such increased are as follow: 1) Television Business The revenue was 327.37 Million Baht which was increased by 12.91% from 289.91 Million Baht in quarter ended June 30, 2006. The main reason was the increasing of broadcasting time by 37 hours when compared to the 278 hours of the quarter ended June 30, 2006. The additional of revenue was also generated from the fee-based TV program production for Channel 7 which was drama and sitcom series. 2) Publishing Business The revenue was 6.55 Million Baht which was increased by 18.44% from 5.54 Million Baht in quarter ended June 30, 2006. The increasing of revenue mainly was generated from publishing work for corporate/government clients. 3) Animation business The revenue was 1.29 Million Baht which was decreased by 87.23% from 10.02 Million Baht in quarter ended June 30, 2006. Due to the company commit to complete the cartoon animation project by next year so, the company slightly decreased other regular jobs from the advertising agency. 4) Movie business The revenue was 36.56 Million Baht from the movie: "Teng nong kon ma ha heer" which was increased by 11.29% from 32.85 Million Baht in quarter ended June 30, 2006. Cost of Production 1. Television Business For the quarter ended June 30, 2007, the company had cost of production for the total amount of 157.53 Million Baht which increased by 22.35% from 128.76 Million Baht in quarter ended June 30,2006 mainly due to increasing of depreciation expense from new studio and air time rental expenses. The additional expenses were the cost for creating the drama and sitcom programs for Channel 7. 2. Publishing business For the quarter ended June 30, 2007, the company had cost of production for the total amount of 3.32 Million Baht which increased by 16.49% from 2.85 Million Baht in quarter ended June 30,2006 which were the same direction as revenue. 3. Animation business For the quarter ended June 30, 2007, the company had cost of production for the total amount of 1.84 Million Baht which decreased by 60.47% from 4.64 Million Baht in quarter ended June 30,2006 which were the same direction as revenue. 4. Movie business For the quarter ended June 30, 2007, the company had cost of production for the total amount of 16.44 Million Baht which increased by 18.19% from 13.91 Million Baht in quarter ended June 30,2006 which were the same direction as revenue. 5. Selling and administration expenses For the quarter ended June 30, 2007, the company had total selling and administration expenses for the total amount of 73.59 Million Baht which decreased by 7.05%. The selling and administration expenses potion to the total revenue was at 19.69% which was strongly improved when compared to the same period of last year which is 22.89%. Please be informed accordingly Best Regards, Workpoint Entertainment Public Company Limited (Mr.Kanchit Kawachat) Executive Vice President-Finance