SET Announcements

February 15, 2006 To: President, Stock Exchange of Thailand. Re: Submission of Financial Statements for the Year 2005. Enclosures: Financial Statements for the Year 2005 and the relevant management discussion and analysis. We are sending you herewith the enclosed financial statements of the company and the consolidated statement of the group for the year 2005 ended December 31, 2005, which were audited by the Auditor and our Audit Committee has already reviewed them. For the year 2005, our advertising revenue we had dropped a lot from previous year level, especially in the first half of the year. This reflects the problems within the advertising industry that ad-spending was affected from natural catastrophe, fuel price adjustments and other issues which had bad impact on purchasing power and consumers' confidence. Even though, situation improved in the later part of the year, helping us were able to improve our operating results to be better than the prior year during the last quarter of the year, but the improvement is not big enough to cover the shortfall during the earlier part of the year. Further more, because of us expanding the primetime and redeveloping certain time slots outside the primetime, since the middle of prior year, and our reluctant to discontinue those to protect the previous investments, in the hope of the improvement, our costs and operating expenses had increased thus had further lowered our operating margin and reduced our net profit to only Baht 881 millions, as discussed further in the attached management discussion and analysis. Please be informed accordingly. Sincerely Yours, (Chathai Thiamtong) Vice President - Finance BEC World Plc. Consolidated Financial Statements for the year 2005 Management Discussion and Analysis: Structure Changes: In 2005, the BEC World group had some small changes in the structure. In July, we had invested 49.99 percent in Thai Audiotex Services Ltd. as our new subsidiary, at Bath 6.22 million; and in December had sold 11 percent in ThemeStar Ltd. changing its status from a subsidiary to be just an associated company. Operating Results: BEC World group made Baht881 millions as its net profit for the year 2005, a decrease of Baht 721 millions - 45 percent lower than that of the prior year as the result of the decrease of advertising income while our costs and operating expenses had increased, as the industry was not growing (as expected) in line with our expansions, thus pushed our operating margin substantially lower especially during the first half of the year. However, our operating results had improved a lot during the later part of the year, especially in the last quarter as we had higher advertising revenue (an increase of 9 percent) and higher net profit (an increase of 23 percent) when compared with the same period of last year. Revenue: Revenue from Sales YEAR YoY (Baht:Million) 4Q05 3Q05 QoQ 4Q04 YoY 2005 2004 B:m % Advertising Income 1,404 1,183 221 18.6% 1,293 111 8.6% 4,963 5,493 -530 -9.6% Copyright & Other Services 115 79 36 44.8% 110 5 4.4% 312 220 92 41.9% Concerts and Shows 162 201 -39-19.3% 217 -55-25.3% 1,033 607 426 70.3% Total Sales Revenues 1,681 1,463 218 14.9% 1,620 61 3.8% 6,308 6,320 -12 -0.2% Advertising income in the last quarter of the year at Baht 1,404 million, is 18.6% higher than that of the previous quarter and 8.6% higher than that of the same period of last year as the results of higher utilization rates achieved during the quarter, especially during the primetime, thus helped reduce lower the big gap from prior year incurred during the earlier part of the year. The revenue from "concerts and shows" was lower down somewhat in the 4th quarter as the number of event had reduced, but for the whole year had increased a lot as ThemeStar's activities were included during the year. Costs and Operating Expenses: Costs and operating expenses in 2005 were increased a lot from prior year level. Apart from the inclusion of ThemeStar, the increases are also caused by our expansion efforts both within the primetime and outside of the primetime which started since the middle of 2004. They still increased during the 4th quarter, mainly because of the seasonal pattern and the investments in the new UHF stations, in the provinces, to upgrade the quality of reception. However, the growth rate had already reduced. Financial positions: Our assets and liabilities, in general, are lower than the balance at the end the prior year, whereas the deduction of cash and cash equivalent, is the biggest difference as a result of the lower profit. Our "fixed assets" and our "right to use property" had increased from our investments within the year, for the future benefits.