TrueSuccess - True Corporation Public Company Limited

ANNUAL REPORT 2004 TRUE CORPORATION PUBLIC COMPANY LIMITED45While True sees many opportunities to grow in 2005, there are a number of general and specific factors that couldimpact the companyûs performance and that of its subsidiaries.Industry RisksTrue and its subsidiaries, particularly TA Orange and its Internet and Broadband businesses, face increasing competitionfrom cellular operators, TOT and new ISP market entrants. As a result, the tariff for mobile phone calls and Broadbandservice has fallen steadily over the past year, which has had, and will continue to have, an impact on operational results.We expect competition to remain intense in the future, but believe True is well positioned to meet this given itsleadership position in the Internet/Broadband market and TA Orangeûs strong 2004 revenue growth and expanding customerbase. In addition, rapid technological change could also adversely affect the viability of Trueûs business and make its owntechnology less competitive. However, at the time of writing no such new technology has been identified as a major currentor imminent business threat.Regulatory and Liberalization RisksTrue and its subsidiaries operate under a number of concessions granted by TOT Corporation Public Company Limitedand CAT Telecom Public Company Limited. A dispute with either TOT or CAT over compliance with a concession agreementcould affect Trueûs ability to conduct business. This concession could be cancelled by TOT if True violates laws relating topublic or national security, the Company is placed under receivership by a court in a bankruptcy case, or it willfully andcontinually breaches a concession agreement in any material respect. However, TOT must submit the case to the ArbitrationTribunal for adjudication before it can cancel the concession agreement with True.Under revenue sharing provisions of Trueûs fixed line concession, TOT collects all of Trueûs fixed line revenues and retainsa portion for the revenue sharing. TOT may withhold or delay payments from revenues collected for True to offset anyobligations it believes it is owed (although this has not occurred to date).