MANAGEMENT’S STATEMENT AND ANALYSIS

  Operating Results for 2001

  The Company’s net loss for 2001 was Baht 42 million as compared to the
  reported loss of Baht 658 million for 2000.

  The Company sold a total of 615K units of computer monitors in 2001,
  decreased by 60.62% from 1.56 million units in 2000. Sales value
  decreased by 54.60% from 2000. The reduction in sales was due to the
  following:

1.  The management’s strategy to concentrate on the production of
    Trinitron models and to stop production of non-profitable Shadow
    Mask models of computer monitors.

2.  Worldwide economic slowdown in particular the United States and
    Europe markets.

3.  Major customer, Sony Corporation, terminated the engagement with the
    Company in producing the monitors as consequence of their decision
    to discontinue with the production of small-middle size Trinitron
    monitors.

  Gross margin in 2001 was 5.55%, increased by 2.37% as compared to
  gross margin 3.18% in 2000. The improvement of gross margin was a
  result of the Company’s strategy to concentrate on more profitable
  Trinitron models and cost reduction programs.

  Fixed overhead costs and General and Administrative expenses in 2001
  decreased by Baht 149 million as compared to 2000 due mainly to the
  Company’s restructuring and cost reduction programs.

  As a result of the continuous reduction in orders as well as business
  termination by customer, the Company laid off a total of 1,224 workers
  and staff during the year at a cost of Baht 62 million. As at December
  31, 2001, the total workforce was 419.

  In 2001, the Company recorded legal fee and cost of damage amounting
  to Baht 100 million in relation to the breach of patent on certain
  products in the past years production.

  Warranty expense and Provision for stock obsolescence and usage in
  2001 was Baht 2 million and Baht 7 million respectively. The
  significant reduction as compared to 2000 was because the Company had
  enough provision in 2000.

  The loss of Baht 42 million in 2001 was mainly due to the reduction in
  sales and the gross margin was not enough to cover the minimum costs
  and expenses even though tremendous efforts were made to reduce costs
  and expenses.

  Analysis of Financial Position and Financial Ratio

  The company’s debt to equity ration was 7.3 times and 6.36 times in
  1999 and 2000 respectively.

  The company increased its share capital in significant amount during
  the year 2001. As a result, from the capital adequacy standpoint, the
  Company’s debt to equity ratio was at a better position in 2001 (3.08
  times) even though the Company had incurred loss during the year.

During the year 2001, the company still had no liquidity problems. The
current ratio was improved at the consistent level at 1.53, 1.74 and
3.19 times in 1999, 2000 and 2001 respectively, due to the company
received the revolving loan from related company in significant amount.

From operating cash flow perspective, the company was continuing to
improve the inventory management. Therefore the inventory turnover
period was reduced from year 2000 (52 days and 51 days in 2000 and 2001
respectively).

Considering the operation results and efficiency, due to the
management’s decision to slow down the non-profitable products and focus
to produce the trinitron product only in year 2000 continuing to year
2001. The return on Asset ratio was (0.83) in year 2001 was significant
continuing to improve from 1999 and 2000 ((11.46) and (21.94) in 1999
and 2000 respectively).