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ITACO‘s Notes on Financial Statement for the first six months of 2008

On August 25, 2008, ITACO already submitted financial statement for the first six months of 2008 to the Ho Chi Minh City Stock Exchange (HOSE), not on August 29 2008 as mentioned in the Exchange‘s Document N0. 1770/SGDCK-NY. On September 4, 2008, ITACO continued to submit to the Exchange the financial statement for the first six months of 2008 audited by the Ernst & Young Audit Company.

TO: HO CHI MINH CITY STOCK EXCHANGE

(Ref: Notes to the financial statement for the first six months of 2008)

Firstly, ITACO expresses sincere thanks to the Exchange for supporting and assisting ITACO since its first listing on the Ho Chi Minh City Stock Exchange.

ITACO already submitted financial statement for the first six months of 2008 to the Stock Exchange on August 25, 2008, not on August 29, 2008 as mentioned in the Exchange‘s Document N0. 1770/SGDCK-NY. On the following September 4, 2008, ITACO continued to submit the financial statement for the first six months of 2008 audited by the Ernst & Young Audit Company.

ITACO would like to submit explanations related to the HOSE’s request as follows:

From 2002 to the first half of 2008, ITACO reported revenues on land and factory plant leasing in net proceeds, which were shown in the 2007 audit report conducted by the A&C Audit Company.

This has made its sales and profits significantly differ from the audit report following international accounting standards conducted by the Ernst & Young Company for ITACO for years 2005, 2006 and 2007 (reporting overall sales upon transferring land).

Therefore, ITACO has submitted documents to the Finance Ministry for changing revenue accounting method: reporting overall sales upon transferring land and factory plants to clients, so that ITACO‘s two audit reports will have no difference in sales and profits (according to both Vietnamese and international accounting standards).

This change has altered ITACO‘s opening balance in the financial statement for the first six months of 2008 as well as induced sales and profits of the first six months published on July 23, 2008 (revenue accounting in net proceeds) and the adjustments’ balance has been mentioned in details in pages 26 to 30 of the financial statement conducted by the Ernst & Young Audit Company.

According to the Vietnamese accounting standards, the audit reports of previous years are not permitted to be republished and only opening balance is allowed to be readjusted in the report of the next following year.

2. Authorizing individuals for financial investment is not prohibited by state laws and ITACO has made close examination on contracts and imposed mandatory clauses to secure the best profits for ITACO s’ shareholders. The Ernst & Young Audit Company has agreed with ITACO’s practice.

3. The Note’s figure N0.22 in the cash flow statement has been modified by the Ernst & Young Audit Company.

4. Enclosing the Finance Ministry‘s document about the authorization of altering ITACO‘s revenue accounting method.

Once again, ITACO expresses gratitude for consideration and support of the HCM Stock Exchange Department and best wishes for the further development of the Vietnam Stock Market.

Respectfully Yours,

Tan Tao Investment & Industry Corporation

President

Thai Van Men