Management s Discussion and Analysis on the Company s Operating Results Based on the Financial Statements for the Period between 1 January to 31 March 2005 Overview of the Company and its Subsidiary Result of Operations Unit Million Baht (Reviewed) Jan-Mar04 (1) Jan-Mar05 %Change Total Revenues 659 813 23 Total Expenses 358 477 33 Profit before tax 301 336 12 Net Profit 226 (2) 252 12 Notes: 1) MCOT Public Company Limited formerly known as the Mass Communication Organization of Thailand was registered as a public company limited on August 17, 2004. The Statements of Income for the period between 1 January to 31 March 2004 (Reviewed) which was during the operations of the Mass Communication Organization of Thailand was disclosed in the Offering Circular for Ordinary Shares of MCOT Public Company Limited. The effective date of the Offering Circular is 21 October 2004. 2) Net Profit for the period between 1 January to 31 March 2004 is 301 million Baht (no corporate income tax payment since not yet transformation into a public company). In order to compare the net profit ended March 04 with that of MCOT as a public limited company ended March 05 net profit amounting to 226 million Baht (ended March 04) was the net profit after the deduction by 25% corporate income tax. The 23% increase in total revenues was mainly a result of the increase in television revenues. Since the Company has increased the proportion of self-produced while reducing the programs under airtime rental arrangement the Company was able to increase its own advertising airtime space and its revenue. In addition The Company continuously gained the revenue from special projects such as Image for Bank for Agriculture and Agricultural Cooperatives A-Generation Bangkok Metropolis Oichi and etc. The 33% increase in total expenses was generated from the increase in the both television and radio expenses. The reasons for the increase in television expenses were from the self-produced expenses and the expenses in live programs such as report for Tsunami ( 26 December 2004 to 5 January 2005) and report for National Election ( 6 January to 6 February 2005). The increase in radio expenses attributes to the expense for the operation and management of 6 radio stations which have returned to MCOT Plc. namely FM 95 FM 96.5 FM 97.5 FM 99 FM 100.5 and FM 107 MHz.