12. Management’s Analysis

Clarification of the Company’s operating results for 2003

The results are summarized below:

(Unit : Million Baht)

+----------------------------------------+--------------+--------------+
|                                        | 2003         | 2002         |
+----------------------------------------+--------------+--------------+
| Sales                                  | 80 (100%)    | 159 (100%)   |
+----------------------------------------+--------------+--------------+
| Others Income                          | 38 (48%)     | 17 (11%)     |
+----------------------------------------+--------------+--------------+
| Exchange Gain/ (Loss)                  | 10(12%)      | (59)(-37%)   |
+----------------------------------------+--------------+--------------+
| Material Costs                         | 119%         | 87%          |
+----------------------------------------+--------------+--------------+
| Direct Labor                           | 8%           | 9%           |
+----------------------------------------+--------------+--------------+
| Variable Overhead                      | 11%          | 8%           |
+----------------------------------------+--------------+--------------+
| Fixed OH, R&D                          | 90 (113%)    | 129 (81%)    |
+----------------------------------------+--------------+--------------+
| General & Administrative & Others      | 114 (143%)   | 139 (87%)    |
| expenses                               |              |              |
+----------------------------------------+--------------+--------------+
| Others expenses                        |              |              |
+----------------------------------------+--------------+--------------+
| Operating Income/ (Loss)               | (187)        | (307)        |
|                                        | (-235%)      | (-193%)      |
+----------------------------------------+--------------+--------------+
| Interest expenses                      | 0(0%)        | 82 (52%)     |
+----------------------------------------+--------------+--------------+
| Extraordinary income: Reversal of      | 26 (33%)     | 164 (103%)   |
| reserves                               |              |              |
+----------------------------------------+--------------+--------------+
| Share of Profit (Loss) from Subsidiary | (0)          | (544)        |
| and Associated Co. and restructuring   |              |              |
| of related parties                     |              |              |
+----------------------------------------+--------------+--------------+
| Net Profit (Loss)                      | (161)        | (770)        |
+----------------------------------------+--------------+--------------+

Note : There were reclassifications in the profit and loss statement for
2002 to conform with the presentation for 2003.

The company’s net loss for 2003 was Baht 161 million as compared to the
reported loss of Baht 770 million for 2002.

The Company reported a loss of Baht 187 million in 2003. Other than the
extraordinary loss, the loss was mainly due to the reduction in sales
and the gross margin attained was not enough to cover the minimum costs
and expenses even though a lot of efforts were made to reduce costs and
expenses.

Under the severe competitive environment in the industry, the Company’s
operating result for 2003 was not satisfactory. However, there were good
improvements in many other areas in comparison with 2001 and 2002.
Positive changes carried out in 2003 includes cost reduction in fixed
and variable elements, effective material disposals, inclusion of
existing stocks in new product designs, simplifying production processes
in TFT LCD monitors, and enhancing local engineering skills by the
support from other related companies from Taiwan and Singapore.

The directors are of the opinion that in 2004, the Company shall
continue to face a competitive environment. More and more manufacturing
bases have been relocated to Mainland China which has a cost advantage
over Thailand.

The market demands for CRT based monitors continues to decline and
probably will be phased out gradually with replacement of TFT LCD
displays. For the near / long term, the Company shall concentrate on its
expansion of its customer base in LCD monitors and LCD multi-media/LCD
TV in order to be competitive and at the same time earning a reasonable
margin to the Company.

The financial statements have been prepared on going concern basis. The
consolidated financial statements and separate financial statements of
the company for year 2003 reflected a loss before and after
extraordinary items of approximately Baht 187 million and Baht 161
million respectively. In year 2003, due to insufficient market demand,
the Company wound down its operations. It made significant staff
reductions and changed the status of all remaining staff to that of
contract workers. The Company, itself, paid total severance pay of Baht
40.67 million.

In November 2003 the Stock Exchange of Thailand placed the Company into
rehabilitation. The Company needs to present its detailed rehabilitation
plan for review and this rehabilitation plan is currently under
preparation by the Company.

The financial statements of the Company for 2003 and 2002 show that net
cash used in operations during those yeas was Baht 126 million and Baht
557 million, respectively, and that as the end of the year 2003, current
liabilities exceeded current assets by Baht 16 million. The company’s
ability to continue as a going concern is dependent on the receipt of
continuing financial support from the parent company group. The
assumption is premised on future events, the outcome of which is
inherently uncertain. The financial statements do not therefore include
adjustments that might result should the Company not be able to continue
as a going concern.