PREMIER ENTERPRISE PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
REPORT AND INTERIM FINANCIAL STATEMENTS
FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED 30 JUNE 2004 

Review Report of Independent Auditor
To the Board of Directors and Shareholders of
Premier Enterprise Public Company Limited
I have reviewed the accompanying consolidated balance sheet of Premier Enterprise Public Company Limited and its subsidiaries as at 30 June 2004, the related consolidated statements of earnings for the three-month and six-month periods ended 30 June 2004 and 2003, the related consolidated statements of changes in shareholders’ equity and cash flows for the six-month periods ended 30 June 2004 and 2003, and the separate financial statements of Premier Enterprise Public Company Limited for the same periods. These financial statements are the responsibility of the Company’s and its subsidiaries’ management as to their correctness and the completeness of the presentation. My responsibility is to issue a 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 and its subsidiaries’ 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.
As described in Note 1 to the interim financial statements, on 2 August 2002 the Supreme Court handed down a verdict approving the Company’s rehabilitation plan. However, after recording gains from debt restructuring in 2002, as at 30 June 2004 the Company and its subsidiaries still have a combined capital deficit of Baht 1,997 million. In addition, under the rehabilitation plan the Company is obliged to repay debt and interest totaling Baht 2,284 million, due for repayment during 2004 to 2012. These factors raise doubts  as to the the ability of the Company and its subsidiaries to continue their businesses as going concerns with such continuity depending upon their future operating results and their ability to obtain sources of funds. However, the accompanying financial statements have been prepared under the going-concern basis assuming that the Company and the subsidiaries will be able to continue their business operations as going concerns and that their assets will be realised and their liabilities discharged in the ordinary course of business without any compulsory actions, and without making the adjustments that might be required to present assets at their saleable value, and liabilities in accordance with the amounts that would have to be repaid, and to reclassify accounts, in the event the Company and its subsidiaries were unable to continue their businesses as going concerns.
Because the going concern issue described in the above paragraph might have a material adverse effect on the financial position and operating results of Premier Enterprise Public Company Limited and its subsidiaries, and the separate financial statements of Premier Enterprise Public Company Limited, I was unable to reach any conclusion as a result of my reviews.
I have previously audited the consolidated financial statements of Premier Enterprise Public Company Limited and its subsidiaries and the separate financial statements of Premier Enterprise Public Company Limited for the year ended 31 December 2003, in accordance with generally accepted auditing standards and issued a disclaimer of opinion on those statements under my report dated 16 February 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  : 3 August 2004