Explanation on the Purpose of Stock Dividend

BackFeb 27, 2006

RPC/HO-SET/ELICID-0008/06
      
       February 27th, 2006
      
       Subject : Explanation on the Purpose of Stock Dividend
      
       To :          President
                        The Stock Exchange of Thailand
       
       Due to many inquiries from investors regarding the Board of Directors'
       resolution made on February 20th, 2006 concerning Dividend Payment
       from the second-half of the Company's performance at the rate of Baht
       0.35 per share. As reported earlier to the SET, the dividend of Baht 0.10
       per share will be paid in cash and Baht 0.25 per share will be paid as
       Stock Dividend at the rate of 4 exiting shares to 1 new share which is
       equivalent to Baht 0.25 per share. The dividend from remaining shares
       derived from the division will be paid in cash at Baht 0.25 per share.
       Rayong Purifier PLC. would like to explain the purpose of Stock
       Dividend scheme as follows:
      
       Even though the Par Value of the Company's shares has already been
       split from Baht 5.00 per share to Baht 1.00 per share and the total
       number of shares have been 5 times increased in October 26th, 2004
       in order to increase the liquidity of the share in the SET. But, however,
       the total number of share is still not big enough to effectively increase
       the circulation. The BOD, therefore, propose Stock Dividend scheme to
       further increase the share liquidity. The company will increase the
       Registered Capital and issue all new shares at par value to the existing
       shareholders whose names are in the Company Share Register at the
       Closing Date, at the ratio of 4 existing shares to 1 new share in
       accordance with their shareholding position. This dividend scheme will
       increase the liquidity of the Company's shares in the SET without
       dilution effect to existing shareholders. This Stock Dividend scheme
       was purposely proposed and dose not due to cash flow deficiency.
       
       Please be so informed.
      
      
       Sincerely Yours,
      
      
      
       Mrs.Siraporn  Krishnakan
       Assistant Managing Director