Bangkok--Jun 23--Kim Eng Securities M.C.S. Steel Public Company Limited was founded in 1992 with experienced management in steel and construction industry with start up registered capital of Baht 15 Million. Currently, the company’s registered capital and paid up capital are Baht 500 and 400 Million respectively. Dr. Naiyuan Chi is the Chief Executive Officer and Mr. Sompong Metasatidsuk is the Managing Director. MCS is the leading steel fabricating company in Thailand in Beam and Column-Box. This kind of steel is tolerance to vibration and used in building construction in earthquake area. MCS currently has production capacity of approximately 40,000 tons per year. In 2003, MCS expanded its business into agricultural business by production and distribution of biofertilizer which is currently under research and development phase. Business Objective MCS plans to increase its production capacity to 50,000 tons per year in 2006 in order to serve the increasing demand from its customers and gain cost competitive advantage. In addition, MCS has its policy to maintain its standard and continuously improve its production quality. Strength 1. Stable market in Japan which is approximately 6-7 million tons per year for the last 3 years — MCS is one of the large foreign fabricators that export structure steel to Japan. Its production capacity is in top 20 among structure steel producers in Japan. 2. Long-term relationship — MCS has orders approximately 6 months to 1 year in advance with its customers. 3. MCS production meets international standards, e.g. “H” Class fabricator, JASS 6, ISO9001:2000, and Thai Industrial Standard Institute (TISI). 4. Continuously development — MCS has its policy to invest in developing the production technology and support employees training and development. 5. Strong financial status — MCS has conservative financial policy with low debt commitment. At the end of 2004, MCS has Debt to Equity ratio of 1.1 times and Net Debt to Equity ratio equivalent to cash. 6. MCS Village — MCS provides accommodation to its employees in MCS village. This facilitates employees and enhances production capacity of employees. Revenue Structure Unit: Million Baht 2002 2003 2004 Amount % Amount % Amount % 1. Structure Steel 1.1 Domestic 6.33 0.84 15.24 1.48 63.74 4.12 1.2 Export 735.58 97.74 996.56 96.45 1,441.70 93.17 2. Sale of scrap iron 1.96 0.26 2.31 0.22 9.64 0.62 3. Other revenue 2.32 0.31 19.15 1.85 5.52 0.36 4. Gain on exchange rate* 6.39 0.85 - - 26.78 1.73 Total 752.58 100 1,033.28 100 1,547.38 100 Note: in 2003, the company obtained loss from exchange of Baht 4.07 million. End.