Explanation on the Change of >20% of Business Performance

L.P.N./ IR/08/50

10 May 2007

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 2007 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 2007.

L.P.N. Development Public Co., Ltd. carries on the business of real estate (residential condominiums) development, having its plan for the year 2007 as follows; 1. maintaining the previous target group by developing new projects in new locations where there is low competition, 2. expanding target group to C+ group, and 3. placing an emphasis on creating vibrant communities as the differentiation of the products and services.

In Q1 of 2007 the company, its affiliates and joint companies had total revenues of Baht 1,067.28 Million, greater than those of Baht 425.12 Million in the same period of 2006, or 151.05 % more. This was the consequence of recognized revenues of the project Lumpini Place Narathiwat-Chaophraya according to the percentage of completion (ownership transfer started in Q2, 2007) and another 4 projects from 2006, including revenues from 3 pieces of land in front of the residential condominiums which should be developed as commercial buildings and townhouses for Pornsanti Co., Ltd. - the affiliate whose main objective is to develop real estates in Non-Condo group. However, the gross profit from the sales slightly increased from 36.49% to 36.88% in this quarter. The main reason was the efficient cost control. Therefore, the average net profit margin increased from 11.90% in Q1 of 2006 to 18.94% in Q1 of 2007. Nevertheless, when considering the actual net profit in Q1, the profit in 2007 increased from 2006 by 299.56% because of more recognized revenues coming from the projects that 10 times bigger than those in Q1 of the year 2006

When considering the statement of cash flow on 31st March, 2007, the cash remained Baht 262.83 Million, increasing from Baht 224.42 Million in the same period of the previous year or 17.11% more because the joint companies started to repay the loan to the company amounting Baht 40 Million.

The debt to equity ratio on 31st December, 2006 and 31st March, 2007 increased from 0.80:1 to 1.01:1 respectively. Moreover, interest-bearing debt also increased from 0.38:1 to 0.64:1 because there was continual investment and new project launching.

When considering total revenues and the consolidated and separate financial statement, those sums in Q1 would be different, since the company had changed its accounting policy from equity method to cost method, starting on 1st January, 2007 and there must be retrospective adjustment to 2006 as well to be comparable on the same basis. This conforms to the notice no. 26/ 2006 and 32/ 2006 of the federation of accounting profession, appointing the amendment of accounting standard no. 44 concerning financial statement and accounting for the affiliates' investment, and no. 45 concerning accounting for the joint companies' investment.

In Q2-4 of 2007, the company expects that there would be revenues recognition in succession and ownership transfer of 3 projects as follows; Lumpini Place Narathiwat-Chaophraya, Lumpini Place Phahon-Saphankhwai and Lumpini Place Pinklao with total value of approximately Baht 5,300 Million. Furthermore, there would be grand openings of 2 "Lumpini Condo Town projects, 1 "Lumpini Ville and 1" Lumpini Place project.

Summarized Table

Yours sincerely,

(Opas Sripayak)
Managing Director