2. Nature of business

2.1 Background

The Company commenced its business in the production of Pre-Stressed
Concrete Wire and Tyre Bead Wire in 1988, was listed in the Stock
Exchange of Thailand in 1991 and converted into a public company in
1993. In 1994, the Jalaprathan Cement (Public) Company Limited became
the major shareholder by holding 62.42 per cent of the shares in the
Company. In 1995, the Company invested 99.99 per cent in the Rayong Wire
Industries Company Limited, its affiliated company. The major
shareholding structure was changed in 1998 when the Egga Holding Company
Limited replaced the Jalaprathan Cement (Public) Company Limited.
Currently, the affiliated company already executed a debt restructuring
agreement with the creditors. The Company is in the process of preparing
a business rehabilitation plan as ordered by the Central Bankruptcy
Court. The plan is being prepared by Mr Phiraphan Phalusuk.

2.2 Overview of the business operation of the Company and its subsidiary

The Company and its subsidiary, the Rayong Wire Industries Company
Limited, operate the business mainly in the production of Pre-Stressed
Concrete Wire (PC-Wire) used in the fabrication of piles, electric
poles, pre-fabricated floor slabs; Pre-Stressed Concrete Strand
(PC-Strand) used in major construction such as bridge beams, large
piles; Tyre Bead Wire used in the motor-vehicle industry; Welding Wire
used in the metal welding industry; and Galvanized Wire used in the
telecommunications and electrical systems (production of Galvanized Wire
was paused since 1998). The Eastern Wire (Public) Company Limited ceased
producing all products at its Bangpakong Plant since mid-1998 to
present.

2.3 Income structure

As the Company ceased producing all products at its Bangpakong Plant
since mid-1998, the subsidiary company is therefore manufacturing
products for distribution directly to the customers and exclusively to
the Company, the income derived from the business of the Company and the
its subsidiary is as follows:

+---------------------+--------+------+--------+------+------+------+
| ITEM                | 2000   | %    | 1999   | %    | 1998 | %    |
+---------------------+--------+------+--------+------+------+------+
| Domestic Sale Value |        |      |        |      |      |      |
+---------------------+--------+------+--------+------+------+------+
| 1. Prestressed      | 192.20 | 6    | 218.93 | 6    | 42   | 6    |
| Concrete            |        | 6.97 |        | 3.57 | 9.82 | 7.85 |
+---------------------+--------+------+--------+------+------+------+
| 2. Tyre Bead Wire   | 67.19  | 2    | 119.27 | 3    | 14   | 2    |
|                     |        | 3.41 |        | 4.63 | 1.60 | 2.35 |
+---------------------+--------+------+--------+------+------+------+
| 3. Welding Wire     | 17.43  | 6.09 | -      | -    | 4.61 | 0.73 |
+---------------------+--------+------+--------+------+------+------+
| 4. Galvanized Wire  | .14    | 0.05 | 0.96   | 0.28 | 7.49 | 1.18 |
+---------------------+--------+------+--------+------+------+------+
| Total Domestic      | 279.96 | 9    | 339.16 | 9    | 58   | 9    |
| Sales Value         |        | 6.50 |        | 8.48 | 3.52 | 2.11 |
+---------------------+--------+------+--------+------+------+------+
| Export Sale Value   |        |      |        |      |      |      |
+---------------------+--------+------+--------+------+------+------+
| 1. Prestressed      | 10.04  | 3.50 | 5.23   | 1.52 | 5    | 7.89 |
| Concrete            |        |      |        |      | 0.01 |      |
+---------------------+--------+------+--------+------+------+------+
| 2. Tyre Bead Wire   | -      | -    | -      | -    | -    | -    |
+---------------------+--------+------+--------+------+------+------+
| 3. Welding Wire     | -      | -    | -      | -    | -    | -    |
+---------------------+--------+------+--------+------+------+------+
| 4. Galvanized Wire  | -      | -    | -      | -    | -    | -    |
+---------------------+--------+------+--------+------+------+------+
| Total Export Sale   | 10.04  | 3.50 | 5.23   | 1.32 | 5    | 7.89 |
| Value               |        |      |        |      | 0.01 |      |
+---------------------+--------+------+--------+------+------+------+
| Gross Sales Value   |        |      |        |      |      |      |
+---------------------+--------+------+--------+------+------+------+
| 1. Prestressed      | 202.24 | 7    | 224.16 | 6    | 47   | 7    |
| Concrete            |        | 0.47 |        | 5.09 | 9.83 | 5.74 |
+---------------------+--------+------+--------+------+------+------+
| 2. Tyre Bead Wire   | 67.19  | 2    | 119.27 | 3    | 14   | 2    |
|                     |        | 3.41 |        | 4.63 | 1.60 | 2.35 |
+---------------------+--------+------+--------+------+------+------+
| 3. Welding Wire     | 17.43  | 6.07 | -      | -    | 4.61 | 0.73 |
+---------------------+--------+------+--------+------+------+------+
| 4. Galvanized Wire  | .14    | 0.05 | 0.96   | 0.28 | 7.49 | 1.18 |
+---------------------+--------+------+--------+------+------+------+
| Total Gross Sales   | 287.00 | 100  | 344.39 | 10   | 63   | 10   |
| Value               |        |      |        | 0.00 | 3.53 | 0.00 |
+---------------------+--------+------+--------+------+------+------+
| % of Change         | (      |      | (      |      | (47  |      |
|                     | 16.66) |      | 45.64) |      | .31) |      |
+---------------------+--------+------+--------+------+------+------+

2.3 Business operation objectives

At present, the Company is being in rehabilitation plan, which 61.18% of
its creditors have agreed upon the Company’s plan and such plan is being
submitted to the Court for the approval. As the plan is approved, the
Company is expected to be release out of rehabilitation within the Year
2002.