Translation
Ref.AIT/07- 272
June 5, 2007
Subject: Disposal of Assets to the Thai Industrial Fund 1
To: The President The Stock Exchange of Thailand
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 Thai Industrial Fund 1 (TIF1) on June 5, 2007, detail as follows:
| 1. Transaction Date : | June 5, 2007 | |
| 2. The parties involved : | TIF1 | |
| - Fund size : | Bt 395 Million (Capital Increased from existing fund Bt 505 Million) | |
| 3. General characteristics of the transaction | ||
| - Transaction class : | Sales of Land and Factories | |
| - Transaction volume : | 30.17% of total assets | |
| - The basis used to consider the volume : | Sales value per total assets with appear in the Company's balance sheets as at March 31, 2007 (391,000,000 / 1,295,785,480) | |
| 4. Details of the assets : | 14 units of land and factories, land area total 23.42 rai and building area total 18,690 m2, located in Amata Nakorn Industrial Estate, Hi-tech Industrial Estate, and Bangkradi Industrial Park | |
| 5. The total value of the consideration : | Bt 391 Million | |
| 6. The value of the assets disposed of : | Bt 220,802,105.- (Company's balance sheets as at March 31, 2007) | |
| 7. The basis used to determine the value of consideration : | Sales value | |
| 8. Independent Appraiser : | Appraisal value from Independent appraisers on January 23, 2007 | |
| N & A Appraisal Co., Ltd. | Bt 421,790,000.- (Income Approach) | |
| Sallmanns (Far East) Limited Bt | 394,500,000.- (Income Approach) | |
| 9. Benefits from assets disposition : |
1. Loan repayment to reduce the interest expenses 2. Benefit to be received from investment on property fund (TIF1) 3. Capital gain is realized when the assets is sold 4. The property management fee will be received as the extra income after disposal of assets. | |
| 10. The proposed utilization of the : |
1. Loan repayment proceeds received 2. Invest in the Investment Unit TIF1 3. Use as revolving fund | |
| 11. The approval of transaction : | Approved by the Board of Directors' Meeting No. 3/2007 held on May 15, 2007. | |
| 12. Board of Directors' opinion : | The disposal of assets to the property fund is the advantageous way to increase the business efficiency and increase in return of assets (ROA) for the company. Consequently, the company working capital will increase. The amount received will split to invest in TIF1, repay loan, and expand in to the company's projects under the operation plan 2007. | |
Please be informed accordingly
Faithfully yours,
(Ms. Siriporn Pinprayong)
Assistant Managing Director
Administration Information Technology