REVIEW REPORT OF CERTIFIED PUBLIC ACCOUNTANT

To the Board of Directors and Shareholders of 
Sahamitr Pressure Container Public Company Limited

I have reviewed the balance sheet of Sahamitr Pressure Container Public Company Limited as at June 30, 2004, and the related statements of income for the three - month and six - month periods ended June 30, 2004 and 2003, and changes in shareholders’equity and cash flows for the six – month periods ended June 30, 2004 and 2003. These financial statements are the responsibility of the Company’s management as to their correctness and completeness of the presentation. My responsibility is to issue a report on these financial statements based on my review. 

I conducted my review in accordance with auditing standard applicable to review engagement. That 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 Company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit in accordance with generally accepted auditing standards. Accordingly, I do not express such an opinion on the reviewed financial statements.

Based on my review, nothing has come to my attention  that causes me to believe that the  accompanying financial statements do not present fairly in all material respect in conformity with generally accepted accounting principles.
 
As discussed in Note 1.3 to the interim financial statements, the operations of the Company has been affected by the economic crisis that caused it to default the payments of debts in the year 2000. In addition, during the years 1998 to 2000, the creditor of a related company filed court cases against the related company demanding for loan repayments totalling approximately Baht 1,797 million. Such liabilities are guaranteed by the Company and two Company’s directors. The Company,  therefore, was named as a joint defendant in the lawsuit as a guarantor of the related company’s loan of approximately Baht 1,350 million for which The Office of the Securities and Exchange Commission (SEC) ordered the Company , under the letter dated April 23, 2004, to take up the possible damage (including the possible loss on non – collection of the portion jointly guaranteed by the Company ‘s directors)  for such obligation in the accounts. The Company  therefore, took up such obligation by adjusting its financial statements for the year ended December 31, 2003. As a result of such adjustment, the Company has deficit of Baht 1,461.3 million and Baht 1,477.8 million as at June 30, 2004 and December 31, 2003, respectively, with capital deficiency of Baht 1,170.1 million and Baht 1,186.6 million, respectively. Eventhough, the Company and its related company were successful in the negotiation for debts restructuring as discussed in Note 10 to the interim financial statements, the Company going concern is still significantly uncertain which is subject to a) the ability of the related company to operate successfully in the future, to change its capital structure and to find new strategic partners, including its ability to comply with the conditions throughout the terms of its debt restructuring agreement to relieve the Company’s guarantee obligation, and b) the Company ability to operate successfully in the future and to comply with the conditions throughout the terms of the debt restructuring agreement. The accompanying interim financial statements do not include any adjustments relating to the recoverability of the carrying value and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

I have previously audited the financial statements of Sahamitr Pressure Container Public Company Limited, for the year ended December 31, 2003, in accordance with generally accepted auditing standards and, because of the significant uncertainties on the Company’s going concern, issued a disclaimer of opinion on those statements in my report dated April 30, 2004. The balance sheet of Sahamitr Pressure Container Public Company Limited as at December 31, 2003, which is presented herein for comparative purpose, is a component of those financial statements which I have audited and reported thereon. I have not performed any audit procedures subsequent to the date of that report. 

Mrs. Sumalee Chokdeeanant
Certified Public Accountant
Registration No. 3322

Bangkok, Thailand
July 30, 2004