INTER FAR EAST ENGINEERING PUBLIC COMPANY LIMITED 
REPORT AND FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2004

Review report of Independent Auditor
To the Shareholders of
Inter Far East Engineering Public Company Limited
I have reviewed the balance sheet of Inter Far East Engineering Public Company Limited as at 30 June 2004, and the related statements of earnings, changes in shareholders’ equity and cash flows for the six-month periods ended 30 June 2004 and 2003. These financial statements are the responsibility of the Company’s management as to their correctness and the completeness of the presentation. My responsibility is to report on these financial statements based on my reviews.  
I conducted my reviews in accordance with the auditing standard applicable to review engagements.  This standard requires that I plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement.  A review is limited primarily to inquiries of the Company’s personnel and analytical procedures applied to financial data and thus provides less assurance than an audit.  I have not performed an audit and, accordingly, I do not express an audit opinion.
Based on my reviews, nothing has come to my attention that causes me to believe that the accompanying financial statements are not presented fairly, in all material respects, in accordance with generally accepted accounting principles.
Under my report dated 13 August 2003, I reported that I was unable to reach a conclusion as a result of my review on the financial statements for the six-month period ended 30 June 2003, as presented herein for comparative purposes, because of the uncertainty related to the going concern of the Company’s business. However, as discussed in Note 2 to the financial statements, the Company has completed compliance with most of the conditions of the rehabilitation plan. Although in late 2003, it was unable to comply with certain conditions, in 2004, the Company has repaid most of the principal and related interest, leaving Baht 20 million which is to be settled by the transfer of collateral. The Company will next petition the Central Bankruptcy Court to cancel the Company’s rehabilitation. The Company is confident that it will be successful in all of the above. My present review report on the aforementioned financial statements is therefore different from that previously reported.

I have previously audited the financial statements of Inter Far East Engineering Public Company Limited for the year ended 31 December 2003 in accordance with generally accepted auditing standards and expressed an unqualified opinion on those statements under my report dated 15 March 2004.  The balance sheet as at 31 December 2003, as presented herein for comparative purposes, formed an integral part of the financial statements which I audited and reported on. I have not performed any other audit procedures subsequent to the date of that report.

		Narong Puntawong
		Certified Public Accountant (Thailand) No. 3315
Ernst & Young Office Limited
Bangkok : 11 August 2004