Ref no:      E201005-02





Date:      May 13, 2010





Subject:  Explanation of net loss for the three-month period ended 31 March

2010 increasing over the previous period





To:          The President of Stock Exchange of Thailand



Evolution Capital Public Company Limited would like to notify the Stock

Exchange of Thailand that the net loss for the three-month period ended 31

March 2010 is Baht 23.2 million, compared to a net profit of Baht 19.3 million

for the three-month period ended 31 March 2009, which is an increase in net

profit (loss) of more than 20%.



The main variances are as follows:



1.      Revenue for the three-month period ended 31 March 2010 was Baht 30.4

million, compared to Baht 67.4 million for the three-month period ended 31

March 2009. The decrease of Baht 37 million was mainly due to the

non-recurring revenue recognized in the previous period amounting to Baht 45.5

million derived from property development consulting services and other

revenue from a withholding tax refund for the year 2004-2006, whereas the

non-recurring revenue recognized in this quarter amounted to Baht 11.7

million, derived from receiving a transfer of franchise agreement rights for

no consideration or cost, for the purpose of developing limited service hotels.



2.      Cost of Services and Selling & Administrative expenses for the

three-month period ended 31 March 2010 were Baht 10.6 million and 33.5

million, compared to Baht 16.2 million and 26.2 million for the three-month

period ended 31 March 2009 respectively. The net increase of Baht 1.7 million,

or 4%, was due to increased costs pertaining to consulting and advisory

services and travelling expenses.





Please be informed accordingly.





Yours Sincerely,







(Mark Michael Reinecke)

      Director