Ref. WORK 003/2005 February 28, 2006 Re: Clarification of the operating result for the year ended December 31, 2005 To: President of the Stock Exchange of Thailand Workpoint Entertainment Public Company Limited ("The Company) are pleased to submit herewith the consolidated and company financial statements for the year ended December 31, 2005. The operating results compared to the year ended December 31, 2004 are as follow: The operating performance of the company and its subsidiaries for the year ended December 31, 2005 has show the net profit of 302.38 Million Baht, which increased by 96.74 Million Baht when compared to the 205.63 Million Baht of the year ended December 31, 2004 or increased 47.05% that represented the operating potential and profitability ability of the company. The main reasons of such increase are as follow: Revenue For the year ended December 31, 2005 the company had the total revenue for the total amount of 1,132.76 Million baht from three main business, which were TV Program production for 1,073.28 Million baht, Publishing for 33.4 Million baht and Animation 11.16 Million Baht, which increased 29.27% when compared to the 876.2 Million Baht of the year ended December 31, 2004. The main reasons of such increase are as follow: 1) TV Program production Business The company has ability to created and produced the quality and popularity TV program of the company. During the year 2005, the company had additional fours TV Programs when compared to the same period of the prior year. The programs were Black Box, Fright For Mom, Mum Show and Sixth Senses which were made the revenue increased by 26% from the year 2004. 2) Publishing Business The company had success in selling the Magazines and Pocket Books in Year 2005. The company had additional 4 pocket books which increased to 28 pocket books when compared to the same period of last year. The revenue had increased from 20 million baht from year 2004 to 33.4 million baht year 2005,which increased 66.9%. 3) Animation Business In year 2005 was the first year that the company had invested into Animation Business that made the company increased the revenue from the new business. Cost of Production TV Program production Business The company can control production cost better that last year. For the year 2005, the company had the cost of production for the total amount of 462.6 Million Baht which increased by 16.3 Million Baht when compared to the 397.7 Million Baht of the year ended December 31, 2004 or increased 16.3% or equal cost of production: total revenue of TV Program Production Business at 43.1 % which was lower portion than the same period of last year that had cost of production: total revenue of TV Program Production Business at 46.9%. Publishing Business For the Year 2005, the company had the cost of selling and advertising in Publishing Business for the total amount of 15.5 million baht which increased by 4.3 million baht when compared to the 11.19 Million Baht of the year ended December 31, 2004 or increases 38.8% or equal cost of selling and advertising in Publishing Business : Total Revenue from Publishing Business at 46.5% which was lower portion than the same period of last year that had at 56.0% cost of selling nd advertising in Publishing Business : Total Revenue from Publishing Business. Animation Business In year 2005 was the first year that the company had invested into Animation Business that made the company had additional cost of good sold 5.4 Million Baht. - Selling and Administration Expenses. For the year end 2005, the company had total selling and administration expensed for the total amount of 242.96 Million Baht or equal Selling nd Administration Expenses: total revenue at 21.73% which higher portion than last year that had selling and administration expenses for the total amount of 172.92 Million Baht or equal Selling and Administration Expenses: total revenue at 19.91%. The main reason were 1) Increase of Sale Commission and Sale Promotion expense where were along according to increase of revenue. 2) Increase of employees for support additional TV program and new business in year 2005. - Dividend Payment The company had allocated the net profit by paying the dividend in the amount of 130 Million Baht or equal 0.65 Baht/Share according to the company performance last six months of Year 2005. The total dividend payment through the year 2005 will be 240 Million Baht or equal 1.20 Baht per Share or equal 79.3% of Net Profit. Beside, the company had made the first dividend payment for the first six months of the years 2005 in the amount of 110 million baht or equal 0.55 Baht per share. Please be informed accordingly Best Regards, Workpoint Entertainment Public Company Limited ________________________________________ (Mr. Kanchit Kawachat) Executive Vice President- Finance