Extrusion Coating Project (Additional Information)

16th  June , 2006

Subject: Extrusion Coating Project (Additional Information)

To: President
    The Stock Exchange of Thailand

With reference to our report sent to the SET regarding the proposal to set
up a Extrusion Coating project  dated 30 May 2006, the Company would like to
provide the additional information of this project as follows :

Project Details

In order to improve its product mix towards more value added products, the
company proposes to set up an extrusion coating project. This project would
be implemented by partially using a new plot of land (35-2-54.80 rais) being
acquired from Siam Eastern Industrial Park Limited at an agreed cost of Baht
1.6 million per rai aggregating to Baht 57.02 million Baht. This plot of land
is opposite the existing plant location in Siam Eastern Industrial Park. This
is a not a connected transaction as per SET/SEC regulations.

It is proposed to put up two separate extrusion coating lines in phases. The
likely width of the line would be approx. 1970 mm with a trimmed width of
1905 mm. This will give an annual capacity of about 150-200 million sq mtrs.

The estimated capital cost of the project is USD 5 million per line i.e.
USD 10 million for both the lines.  Bulk of this cost for each line would be
incurred on the main extrusion coating machine ($ 3.0 Mn) and the balance on
auxiliary equipment ($ 0.5 Mn), Land ($ 0.3 Mn) utilities ($ 0.1 Mn), civil
construction costs ($ 0.5 Mn) and preoperative expenditures/contingencies
($ 0.6 Mn). The company is in the process of tying up the financing of this
project.

Product & Usage

A typical extrusion coated product would be a combination of base pet film of
between 12-50 micron thickness and EVA / PE coating of between 20 -100 GSM.
The end uses of this product are largely in developed countries / regions
like US and EU in schools used for book / documents lamination as also a
large trade segment for similar uses besides some packaging applications also.


Project Rationale

a) The project would help improve the product mix of the company away from
   plain films (commodity products in nature and high degree of competition)
   to value added films (Coated, Metallized and Extrusion coated) where the
   margins would be higher and competition levels limited.
b) As the major markets for this product are in US and EU, most of the existing
   players are also located there. Thus, by locating this facility in Thailand,
   there would be significant gains on cost effectiveness due to:
      -      Low operating costs in Thailand
      -   Captive integration with Plain film unit
      -   Integration with existing manufacturing operations with resultant
          optimization in capital / operating costs
c) The existing sales & distribution network in US and EU can be leveraged to
   market and promote this product effectively.
d) Some of the big customers of extrusion coated products are long standing
   buyers of plain films from Polyplex group and discussions are at an advanced
   stage to enter in sales tie-ups.



Please be informed accordingly.
Yours sincerely,



Mr. Manish Gupta
Director