Disposition Of Assets To TIF1

Translation


Ref.AIT/05-302                  
                                    June 16, 2005


Subject :  Disposition of Assets to the Thai Industrial Fund 1
To        :  The President

The Stock Exchange of Thailand

According to the Thai Industrial Fund 1 (TIF1) had approved the registration from the Securities and Exchange Commission on June 9, 2005, which ING Funds (Thailand) Co., Ltd., as the Assets Manager of the fund.   
The Thai Factory Development Public Company Limited would like to announce that the Company had sold and transferred the ownership of land and factories to the TIF1 on June 16, 2005, detail as follows:

1.  Transaction Date:  June 16, 2005
2.  The parties involved:  Thai Industrial Fund 1 (TIF1)
          - Fund size:  Bt 505 Million
3.  General characteristics of the transaction           
         - Transaction class:  Sales of Land and Factories
         - Transaction volume:  28.09% of total amount of assets
         - The basis used to consider the volume:  Sales value per total amount of assets with appear in the Company's balance sheets as at March 31, 2005 (441,333,013 / 1,571,301,342)

4.  Details of the assets:  10 units of land and factories, land area total 29.85 rai and building area total 22,161 m?, located in Industrial Estate, Industrial Park and Industrial Zone at 4 locations, detail as follows:

1. Bang Pa-In Industrial Estate
2. Banwha Industrial Estate (Hi-Tech)
3. Nava  Nakorn  Industrial  Promotional  Zone
4. Bangkadi Industrial Park
5. The total value of the consideration:  Bt 441,333,013.-
6. The value of the assets disposed of:  Bt 253,746,000.- (Company's balance sheets as at March 31, 2005)
7. The basis used to determine the value of consideration:  Sales value
8. Independent Appraiser:  Appraisal value from Independent appraisers (April 5, 2005)N & A Appraisal Co., Ltd. Bt 468,000,000.- (Income Approach) Sallmanns (Far East) Limited  Bt 422,810,369.- (Income Approach) The average Bt 445,405,185.-
9. Benefits from assets disposition:  To raise fund through this channel is to increase company's working capital,and reduce the interest expenses.
10. The proposed utilization of the proceeds received:  To develop and invest into the new projects
11. The approval of transaction:  Approved by the Board of Director' Meeting No. 2/2005 held on February 24, 2005.
12. Board of Directors'opinion
    The board of directors believes that it is the advantageous to invest through the Property Fund(Type I).  The assets management and investment project will increase the efficiency of company business and return of assets. Working capital will increase and reduce cost of fund which lead the company more sufficiency when launching the new project.          
                                                
    
    Please be informed accordingly.
    
    
    Faithfully yours,
    
    
    (Ms. Siriphon  Pinprayong)
    Assistant Managing Director
    Administration Information Technology