14 August 2008 The President The Stock Exchange of Thailand Dear Sir, Re: Management Discussion and Analysis on 2Q08 financial performance Operational Highlights - 2Q2008 - BJC increased additional production capacity of glass containers by 435 tons per day - Selling price increase in glass packaging products resulted in higher gross margin - BJC expanded snack business in Malaysia through the acquisition of Jacy Foods Shn. Bhd. Thai Glass Industrial Public Company Limited ('TGI"), a subsidiary of Berli Jucker Public Company Limited ("BJC") commenced operation of a new furnace at Bang Plee plant on June 23, 2008. This resulted in an additional production capacity of 435 tons per day, which is expected to fully increase production volume of TGI in 3Q2008. In addition, BJC was able to increase its selling price of glass containers to most customers, resulting in an improving gross margin of Packaging Products Group of BJC. On June 2, 2008, BJC has completed the acquisition of 100% shares of Jacy Foods Snd Bhd ("Jacy Foods") in Malaysia with a total investment of 180 million baht. Jacy Foods is a manufacturer and distributor of potato chips and extruded snack both in domestic market and other Asian countries, including Singapore, Hong Kong,Philippines and Brunei. The acquisition would enable BJC to expand snack markets and manufacturing bases to Malaysia and the region. Additionally, BJC and Jacy Foods can cooperate in manufacturing, procurement of raw materials and development of Halal products to Muslim countries, which is a sizable market with high growth potential. Financial Performance Summary - 2Q2008 In 2Q08, Berli Jucker Public Company Limited had total sales of 5,328.8 million Baht. Total sales improved 17.1% YoY, but slightly declined by 1.7% QoQ.2Q08 net profit was at 406.1 million Baht, increasing 59.9% YoY and 52.4% QoQ. 2Q08 revenue was relatively stable comparing to the previous quarter. Sales from Technical and Industrial products group declined QoQ. However, the price increase in glass packaging products resulted in a sales increase in Packaging Products Group. Revenue (Million Baht) 2Q08 2Q07 % change 1Q08 % change Packaging 2,338.0 1,844.3 26.8 2,241.1 4.3 Consumer 1,748.8 1,555.2 12.4 1,812.1 (3.5) Technical and Industrial 1,242.0 1,150.7 7.9 1,365.4 (9.0) Total 5,328.8 4,550.2 17.1 5,418.6 (1.7) Packaging Products Group In 2Q08, sales of Packaging Products Group was at 2,338 million Baht, 26.8% increase YoY, and 4.3% increase QoQ. The Company was able to increase selling price to customers to mitigate the negative impact of increasing raw material costs,resulting in a significant improvement in gross margin of the Group in this quarter. Consumer Products Group 2Q08 sales of Consumer Products Group was 1,748.8 million Baht. Sales increased 12.4% YoY, but slightly declined by 3.5% QoQ due to the shortage of fresh potato supply, which is a major raw material of snack production. Additionally, sales of tissue paper tapered down since one of the key customers delayed the purchase order due to its problem on inventory system at the beginning of the 2nd quarter.However, this problem had been solved and sales were already back to the normal level. In this quarter, sales of Rubia Industries Ltd. significantly increased from higher volume of OEM for skin care products. Technical and Industrial Products Group Technical and Industrial Products Group had 1,242 million baht sales in 2Q08, 7.9% increase YoY, but 9% decline QoQ. The decline was due to lower utilization rate of galvanized steel structure business. Major items in 2Q08 Income Statement Million Baht 2Q08 2Q07 % change 1Q08 % change Revenue from Sales 5,328.8 4,550.2 17.1 5,418.6 (1.7) Cost of goods sold 3,896.9 3,444.1 13.1 4,138.5 (5.8) Gross profit 1,431.9 1,106.1 29.5 1,280.1 11.9 Shares of profits 21.1 9.7 117.5 25.1 (15.9) from investments Other income 76.4 48.8 56.6 96.8 (21.1) Selling and 875.5 769.6 13.8 965.9 (9.4) administrative expenses Interest expense 52.8 39.4 34.0 49.6 6.5 Income tax expense 139.9 77.0 81.7 82.4 69.8 Net profit 406.1 253.9 59.9 266.5 52.4 Earning Per Share (baht) 0.26 0.16 59.9 0.17 52.4 % change % change Key financial Ratio (%) 2Q08 2Q07 (ppts) 1Q08 (ppts) Gross Margin 26.87 24.31 2.56 23.62 3.25 SG&A to sales 16.43 16.91 (0.48) 17.83 (1.40) Net Margin 7.62 5.58 2.04 4.92 2.70 Gross Margin 2Q08 gross margin was at 26.9%, improving from 24.3% in 2Q07 and from 23.6% in 1Q08. The improved gross margin was contributed from every business group of the Company. In terms of Packaging Products Group, gross margin was higher thanks to selling price increase of glass products together with higher efficiency rate by 26% compared to the previous quarter. Gross margin of snack and tissue business also improved. Technical and Industrial Products Group also experienced better gross margin for most of the products due to higher sales proportion of products with higher gross margin. Selling and Administrative Expenses Selling and administrative expenses to sales in 2Q08 was at 16.4%, decreasing from 16.9% in 2Q07 due to higher sales in this quarter. 2Q08 SG&A to sales was also lower than that of 1Q08, which was at 17.83%, since in the 1st quarter, selling and administrative expenses are normally higher than the remaining quarters of the year. Net Profit Net profit increased more than 50% QoQ and YoY due to an improving gross margin of all business groups of the Company together with lower selling and administrative expenses to sales. 2Q08 net margin was at 7.6%, comparing to 5.6% in 2Q07 and 4.9% in 1Q08. Debt to Equity Ratio Debt Ratio 2006 2007 1Q08 2Q08 Interest Bearing Debt to Equity 0.36 0.49 0.55 0.56 Debt to Equity 0.96 0.99 1.10 1.10 The Company's financial position remains solid. After the issuance of 3,030 million baht debenture, the interest bearing debt to equity ratio was slightly higher to 0.56x, which was still far below debenture covenant at 1.75x. Due to the solid capital structure together with strong financial performance, TRIS Rating Co., Ltd.maintained A+ credit rating on the Company. Interim Dividend for the year 2008 The Board of Directors approved the interim dividend payment of 0.15 baht per share. The closed book date will be on August 29, 2008, and the dividend payment date will be on September 12, 2008. Please be informed accordingly. Yours faithfully, Berli Jucker Public Company Limited Thirasakdi Nathikanchanalab Aswin Techajareonvikul Director Director