Part 1

Executive Summary

Polyplex (Thailand) Plc. (“PTL” or “the Company”), which was
incorporated on March 26, 2002 under the promotional privileges of the
Board of Investment (BoI), is in the business of manufacturing and
distributing Thin Polyester (“PET”) film. PTL is currently 70%-owned
subsidiary, through direct and indirect shareholding, of the India-based
Polyplex Corporation Limited (“PCL”), which is in the same business as
the Company’s for the last 19 years.

PET film is a high performance film produced from PET resin (also known
as PET chips). It is a versatile product catering to a broad range of
packaging, industrial, electrical, magnetic media and imaging
applications. Another broad classification made by the Industry is Thin
(including Magnetic media) and Thick PET films. The Company produces
only thin films and operates in the packaging, industrial and electrical
segments.

PTL’s plant, which is located at Siam Eastern Industrial Park, Rayong
Province, accommodates two PET film production lines each with a
production capacity of 19,500 tons per year, aggregating to a total
production capacity of 39,000 tons per year. However, the company has
obtained BOI approval for availing benefits & incentives upto a capacity
of 48000 tons per year. The company also has a captive facility to
manufacture Pet resin with a production capacity of 52,500 tons per year
and has utilized part of the surplus available for export to its
subsidiary company in Turkey. In 2005-06, the Company had also set up
capacity for Metallized PET film which is a forward integration project
for improving the product mix. The company is currently in the process
of implementing a project for manufacturing Extrusion Coated films.
Size, an integrated operation, cost efficiency and high productivity
have been the key competitive factors for the company. The company plans
to continue its focus on growth and value added films and is evaluating
several products / projects including OPP/CPP films and thick Pet films.

During the year 2006-07, the company’s subsidiary company in Turkey,
Polyplex Europa Polyester Film Sanayi ve Ticaret A.S. (PE) has started
commercial operations from its captive PET resin plant in December 2006.
PE is a 100% subsidiary of Polyplex (Singapore) Pte Ltd (PSPL), an
investment holding company in Singapore which in turn is 100% held by
the company. The company had also acquired a distribution company in the
USA (Polyplex (Americas) Inc – formerly Spectrum Marketing Inc)
effective from January 1, 2006 in order to improve its market
penetration in the North American markets.

PTL began commercial operations from its first PET film line in April
2003 with the second line commissioned in November 2003. Its
consolidated sales accounted for Bt. 1,645.47 million in 2003/04, rising
to Bt. 3,262.97 million in the year 2004/05, Bt. 3,299.99 million in the
year 2005/06 and Bt 4,718.57 million in the year 2006-07, an increase of
186.76% over 3 years. Around 80-85% of PTL’s revenue comes from exports.
The key financial indicators for the Company (consolidated) are given
below:

  -------------------- -------- --------- ----------- ----------- -----------
                       Unit     2003-04   2004-05     2005-06     2006-07

                                Apr 03 -  Apr 04 -    Apr 05 –    Apr 06-Mar
                                Mar 04    Mar 05      Mar 06      07

  Revenues             Bt. Mn.  1,718     3,355       3,427       4,809

  Operating Profit     Bt. Mn.  321       655         463         339

  Operating Profit     (%)      19.52%    20.08%      14.02%      7.02%
  Margin                                                          

  Net Profit           Bt. Mn.  367       721         561         342

  Net Profit Margin    (%)      21.37%    21.49%      16.37%      7.11%

  Earning Per Share    Bt. Mn.  35.94*    1.58**      0.70**      0.43**

  Return on Assets     (%)      23.20%    24.30%      11.98%      5.98%

  Return on Equity     (%)      57.86%    34.67%      16.74%      9.76%

  Debt to Equity Ratio Times    1.31      0.17        0.61        0.66
  -------------------- -------- --------- ----------- ----------- -----------

* Par value Bt. 10 per share

** Par value Bt. 1 per share, on weighted average number of shares (for
2004-05)

In the year 2006/07, the Company and its subsidiaries has recorded
marginally higher revenues of Bt. 4,809 million with net profit margins
of 7.11%, and an EPS of 0.43 (with par value of Bt. 1 per share). The
decline in Net profit margin is on account of cyclical downtrend in PET
film prices and sudden increase in raw material prices in the first half
of 2006-07. The return on assets has declined to 5.98% due to decline in
profitability. The return on equity has also been lower at 9.76% during
the year 2006/07 due to the same reason.

As of March 31, 2007, PTL’s and its subsidiaries’ assets account for Bt.
5,838 million, total liabilities Bt. 2,316 million, and shareholders’
equity Bt. 3,522 million. It’s paid up registered capital is Bt. 800
million, divided into 800 million ordinary shares of par value of Bt. 1
each. On Nov’ 30 /Dec’ 1, 2004, the company had made an Initial Public
Offer for common shares aggregating 240 million shares of par value of 1
Baht each at an IPO price of Baht 6.90 per share.

The key risk factors in the company’s operations relate to cyclical
nature of the industry usually caused by over supply leading to
volatility in the margins besides foreign exchange risk given that most
of its earnings are from exports. Competition from existing/new
producers, volatility in raw material prices, threat of trade barrier
measures are the other risks which the company tries to mitigate through
various measures.. The company has effective policies in place to
mitigate the risk of dependence on the parent company and risk from
overlap of products and markets within the group production companies.
(Details in Part-2)

(The investors should study the details in Part 2 before making
investment decision.)