PART 1

EXECUTIVE SUMMARY

NSM was established in 1994 under the name “Nakornthai Strip Mill Co.,
Ltd.” (hereinafter called the “Company”) with the objective to operate a
thin-slab, flat-rolled steel mini-mill in Thailand. The Company
commenced the construction of a mill in Chonburi Province in November
1995. The production line includes a steel melting and hot-rolled coil
production line. The Company converted to a Public Company and was
subsequently granted listing status on the SET on 2 July 1996 at an IPO
price of Baht 16 per share at Baht 10 par value.

NSM carried out the first test run in January 1998 with a designed
annual production capacity of approximately 1.5 million tons per annum
(“tpa”). As a result of the economic crisis encountered over the
following 11 months, the Company’s production volume was at a rate much
lower than the rate required by the production capacity plan and was
eventually halted in December 1998 when damage to certain electrical
equipment was sustained from a lightning strike. Repairs were completed
around the end of February 1999.

The Company however suspended production until October 2003, due to the
Company’s financial difficulties resulting from the effects of Baht
devaluation and weakness in the domestic and international steel
markets. Apart from such suspension, the Company also suspended
construction in respect of the pickling, cold-rolling, and galvanizing
production lines and a direct iron reduction plant, all of which were
considered necessary elements in the original design.

The events referred to above resulted in the Company’s failure to make
debt repayment. Since 1998, the Company had been in default on repayment
of due debt and had its senior executives resign.

In 2000, NSM entered into the debt restructuring process as instructed
by CDRAC and, in the same year of April, entered into the business
rehabilitation process administered by the Central Bankruptcy Court (the
“Court”). In this regard, the SET had posted an SP (suspension) sign to
prohibit the securities of NSM from being traded since 8 May 2000.

On 11 December 2002 the Court approved the Business Reorganization Plan
and appointed Maharaj Planner Co., Ltd. as the Plan Administrator. On 31
October, 2003 the Company achieved the Effective date of the Plan. The
major condition precedent were Public Offering 1,800 million shares,
selling price Baht 2.2 per share at Baht 8.25 per value and Debt
Restructuring by converting debt to equity, extend the payment term of
the Restructured Term Loan in the amount of US$ 200 million. As a
result, the Shareholders’ Equity became positive. On 18 November 2003,
SET allowed Company’s Securities to resume trading under REHABCO sector.

Following the achievement of Effective Date of the Rehabilitation plan
by completion the Public Offering during October 2003 the Company
started the Hot Commissioning of the Core Facility on 13 December 2003.
On 18 December 2003 the Company successfully completed the combined
phase hot commissioning of the Core Facility starting from melting to
rolling of hot rolled coils. The Company commenced production during
January 2004 and produced 502,115 tons of hot rolled coils during 2004.

The Company’s Operational Results as of December 31, 2005 and 2004

(Unit : Million Baht)

  -------------------------------------- ---------------- ---------------
  Description                            2005             2004

  Total Revenues                         15,856.08        9,976.06

  Net Profit/(Loss)                      (720.94)         583.38

  Total Assets                           32,586.44        32,889.84

  Total Liabilities                      14,766.88        14,807.84

  Shareholders’ Equity                   17,819.56        18,081.99

  Basic earnings per share*              (0.08)           0.06

  Net Book Value per Basic shares*       1.93             2.01
  -------------------------------------- ---------------- ---------------

Note : (*) In 2005 and 2004, the number of basic shares are
9,216,649,877 shares and
8,986,398,641 shares respectively.

In year 2005 the company produced 773,033 tonnes of hot rolled steel
coil, higher 54% comparing to 2004, but still under the initial
production target at 900,000 tons causing from the oversupply of
imported cheap price hot rolled coil from China. The increasing rate of
production represents the achievement of almost full production capacity
of the machinery. Moreover, the company can increasing substantially the
proportion of production of thin gauges less than 1.5 mm without having
a major impact on overall throughput.

To expand the new value added product, the company have developed and
tested new products such as hot rolled coil for cold rolling purposes
and gas cylinder grade steels. The company have also successfully
utilized the newly commission temper mill to expand our product range
and add to our product knowledge.

For the Quality management, the company received in November the ISO
9001:2000 Certificate. The company plan to continue the quality
development to achieve other necessary accreditation for international
export and niche market.

The Company is in the process of implementing the Rehabilitation Plan
approved by Central Bankruptcy Court.