SET Announcements

SET05/2008

Date : February 26, 2008

Subject: Management s discussion and analysis of Financial Results of Operations changed excess 20%

Attn : President The Stock Exchange of Thailand

According to the Board of Director Meeting of Major Cineplex Group Plc. (The Company) no. 1/2551 held on February 26, 2008 has resulted to approve the Balance Sheet, Profit and Loss Statement and Statement of Cash Flow of the year 2007 as of December 31, 2007, by this letter, the Company would like to submit the copy of financial statement and the auditor's report for the year 2007.

In addition, the Company would like to Clarification of the operating result of the year 2007 as of December 31, 2007 as follow :-

In the year 2007, the consolidated statement has the total net profit baht 1,226.96 million baht, increased by 531.78 Million Baht or 76% as compared to year 2006 which in the amount of 695.18 million baht. The diluted earning per share 1.41 baht per share (year 2006 = 0.90 Baht per share), The Return on shareholders equity ratio is 22 % (2006 = 20%)

The total revenues in the amount of 6,593.68 million baht for the 2007 year ended compared to at the amount of 5,246.65 Million Baht for 2006 year ended increased by 1,347.03 Million Baht or 26 % as compared to the same period of last year. The increasing of revenue above has been resulting from the revenue recognized from expanding new branches and recognized the Esplanade Branch which has open at the end of year 2006 which is lead to the revenue from cinema business composed increasing of advertising services business. Moreover, in Q2nd, 2007, the Company has disposal the asset of Ratchayothin branch and Rangsit branch to the Major Cineplex Life Style Property Fund (MJLF)

The cost of goods sold and services in the amount of 3,767.77 million Baht increased by 524.82 million Baht or 16 % as compared to the same period of last year (year 2006 = 3,242.95 Million Baht) which resulting from the increasing of cost of VCD/ DVD and film rights. The Company has brought more copyright of the movie and home VDO. Because of acquired film rights and home video increasingly that amortization of rights of those movies.

The selling and administrative expenses is 1,388.52 million Baht or 279.24 million Baht increased compared to 2006 (year 2006 = 1,109.28 million baht) which is equal to 25% related to expanding branch and the rental fee paid to MJLF.

Please be informed accordingly.

Yours Faithfully,

(Mr. Chattaphum Khantiviriya)
Chief Financial Officer