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 18 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. During 2005-06, the Company has also set
up capacity for Metallized PET film which is a forward integration
project for improving the product mix. 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
value added films and is evaluating several products / projects
including Extrusion coated films and thick Pet films.

During the year 2005-06, the company’s subsidiary company in Turkey,
Polyplex Europa Polyester Film Sanayi ve Ticaret A.S. (PE) has started
commercial operations from its thin film line with a production capacity
of 24,000 tons per year also from the forward integration metallizer
project with a production capacity of 5,000 tons per year. 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 also acquired a distribution company in the USA (Polyplex
(Americas) 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 sales
accounted for Bt. 1,645.47 million in 2003/04, rising to Bt. 3,262.97
million in the year 2004/05 and Bt. 3299.99 million in the year 2005/06,
an increase of 100.55% over 2 years. Around 85% of PTL’s revenue comes
from exports. The key financial indicators for the Company are given
below:

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

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

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

  Operating Profit   Bt. Mn. 321           655             463

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

  Net Profit         Bt. Mn. 367           721             561

  Net Profit Margin  (%)     21.37%        21.49%          16.48%

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

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

  Return on Equity   (%)     57.86%        34.67%          16.77%

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

* Par value Bt. 10 per share

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

In the year 2005/06, the Company and its subsidiaries has recorded
marginally higher revenues of Bt. 3,427 million with net profit margins
of 16.48%, and an EPS of 0.70 (with par value of Bt. 1 per share). The
return on assets has declined to 11.98% due to significant addition to
asset base in its fully owned Turkish subsidiary where commercial
operations have begun only towards the last quarter of the fiscal year.
Further, with decline in profits and addition to accumulated profits,
return on equity has been lower at 16.77% during the year 2005/06.

As of March 31, 2006, PTL’s and its subsidiaries’ assets account for Bt.
5,602 million, total liabilities Bt. 2,119 million, and shareholders’
equity Bt. 3,483 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 risk from expansion projects is much reduced now
with completion of almost all projects except the Turkey pet resin
project. 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.)