SET Announcements

March 2, 1999 Manager The Stock Exchange of Thailand Dear sir: According to the performance of Noble Development Public Company Limited and its subsidiaries for the year ended December 31, 1998 reported net loss Bt580.51m decreased more than 20% from the same period of the previous year which reported net loss Bt431.85m The company would like to clarify that the increase of the net loss mainly due to 1. The economic recession crisis resulted in suspension of development in some projects of the company. According to the accounting standard about capitalization of the borrowing cost, the company recorded 1998 loan interest of said projects amount of Bt201.45m as interest expenses in profit and loss. Besides, promotion expenses and pre-operating expenses of the suspense projects totaling Bt86.80m and Bt84.16m, respectively, which ever been recorded as part of development cost in balance sheet, are written off as expenses in income statement. 2. Although the decrease of interest rate during the forth quarter seem to be a good sign of the economic improvement, the loan restriction, both for project development and housing loans, does not appear decline which mainly affected the transfer of sold units. Revenue from sales was reduced to 28% compared to the previous year. Since the severe price competition, the companys gross profit margin decreased from 21% to 26% gross loss. 3. Because of the Bahts stabilization, the company recorded gain on exchange rate amount Bt100.12m in 1998. The company realized that could not avoid the economic crisis, then the company considers its capital management as vital by 3% decreasing in selling and administrative expenses compared to 1997. Sincerely, Sitti Leelakasamelerk Director