Explanation Change More than 20% of Performance

Subject:
1. The 1st Quarter Consolidated Financial Statements of L.P.N. Development Public Co., Ltd.
2. Explanation on the Change of More Than 20% of the Business Performance.

Attention: The Director and Manager The Stock Exchange of Thailand Attachment: 1 set of Financial Statements (Thai and English Edition) as at the 1st Quarter Year 2006 of L.P.N. Development Public Co., Ltd. its subsidiaries and joint company

According to the Act of Legislation of The Stock Exchange of Thailand Section 56 on disclosing information that the Company had to submit its financial statements within 45 days after the last day of the 1st Quarter, we herewith submit to you 1 set of L.P.N. Development Public Co., Ltd., its subsidiaries and joint company's audited financial statements of 1st Quarter Year 2006.

L.P.N. Development Public Co., Ltd., carries on the business of real estate development with an emphasis an residential condominiums. After the economic crisis, the company developed small projects whose buildings are 8-9 storeys, with the objective to call back the market's confidence, from which the company gained great success and became the market leader possessing highest market share in number of registered units. Moreover, in 2004 the company adjusted the strategy by starting the development of high-rise buildings in order to enhance the efficiency of the land utilization in the aspect of"Economy of Scale" The whole process of the project, such as land purchase, design, sale, construction, units' handing over and transfer, is appointed to be complete in one year (Economy of Speed) All projects' development of L.P.N. Development Public Co.,Ltd.Including projects' opening and recognized revenue are proceeded according to the annual business plan approved by the Board of Directors.

Regarding business profits of Q1, 2006, the company, its affiliated and joint companies had the total revenues of Baht 425.12 million, sinking from Baht 708.91 million in the same quarter of 2005, or 40.03% less. This was the result from smaller amount of the units' transfer of Lumpini Center Nawamin Project which was 2.5 times smaller than Lumpini Center Sukhumvit 77 Project whose units were transferred last year. However, this result still followed the business plan of the year 2006. The net profit amounting Baht 50.60 Million decreased from Baht 108.94 Million in the first quarter of 2005, or 53.54% less. This was due to the smaller size of the project as mentioned before and increasing expenses of sale's and management's work. Most expenses are fixed charges. In addition, the company opened the new project "Lumpini Place Phahol - Saphankhwai" in the first quarter of the year 2006 which caused more expenses for selling's and marketing's work.

The gross profit of the sale rose from 35.98% to 36.49% due to the use of Cost Leadership and Speed Strategy. When considering the statement of cash flow, cash status equals Baht 224.42 Million, sinking from Baht 525.43 Million in the same period of the year or 57.29% less, since the company made and investment in the units of Grand Parkview Asoke amounting Baht 253.28 Million for rental purpose managed as Recurring Asset and purchase two more pieces of land for development in 2006. Total Value Baht 486.50 million " Lumpini Place Phahol - Saphankhwai" and " Lumpini Place Ratchada - Thapra".

Ratio of debt to equity on 31st March, 2005 and 2006 increased from 0.77 :1 to 0.88:1 However, when considering only the interest-bearing debt, the ratio decreased from 0.55:1 to 0.49:1

Nevertheless, the company is proceeding the revenue recognition for the second to forth quarters of another 3 projects: Lumpini Ville Sukhumvit 77, Lumpini Place Pinklao and Lumpini Ville Cultural Center, with total amount of 2,891 units, approximately Baht 4,600 million.

Yours sincerely,

(Opas Sripayak)
Managing Director
Director Office: Tel 02-285-5011 ext.133 Miss Kachit