Report of the directors For the First 6 month 2007

REPORT OF THE DIRECTORS

The Directors of Tan Tao Investment - Industry Corporation (‘the company’) present this report together with the audited financial statements for the first 6 months of the fiscal year ending 31 December 2007.

Business highlights

Tan Tao Investment - Industry Corporation (transformed from Corporation for Investment - Construction - Business Exploitation of Tan Tao Concentrate Industrial Park) was established and has operated under the Business Registration Certificate No. 4103001108 dated 15 July 2002 granted by the Service of Planning and Investment of Ho Chi Minh City.

During its course of operation, the company has been granted the following amended Business Registration Certificates:

- The 2nd amended Certificate dated 5 February 2003, the 3rd amended Certificate dated 28 April 2003, the 5th amended Certificate dated 17 August 2006, the 6th amended Certificate dated 30 January 2007, the 8th amended Certificate dated 8 May 2007 and the 10th amended Certificate dated 01 August 2007 approving the increases of prescribed capital.

- The 4th amended Certificate dated 16 August 2004 approving the change in the head office’s address.

- The 7th amended Certificate dated 27 February 2007 approving the change of the company’s legal representative.

- The 9th amended Certificate dated 10 July 2007 approving the addition of the company’s business functions.

- The 11th amended Certificate dated 7 September 2007 approving the change of the company’s name from Tan Tao Industrial Park Corporation to Tan Tao Investment - Industry Corporation.

The company has been allowed to list its shares in Ho Chi Minh City Securities Trading Center in line with the License No. 68/UBCK-GPNY dated 15 November 2006 granted by the Chairman of the State Securities Commission.

Prescribed capital VND 1.000.000.000.000

The company’s prescribed capital was mobilized on the basis of share issuance.

Number of shares already issued: 100.000.000 ordinary shares

Face value: VND 10,000 /share

The company’s capital as of 30 June 2007 is VND 625,160,000,000

Head office

Address : Lot 16, Road No. 2, Tan Tao Industrial Park, Tan Tao A Ward, Binh Tan District, Ho Chi Minh City

Tel. : 08. 7505171 – 08. 7505172

Fax : 08. 7508237

E-mail : itaco@tantaocity.com

Tax code : 0302670307

Main operations of the company:

- Constructing and trading infrastructures in Tan Tao Industrial Park;

- Constructing and trading industrial parks, residential and urban areas;

- Leasing the land on which the infrastructures have been completely built;

- Leasing or selling the plants constructed by the company in the industrial parks;

- Providing services in industrial parks;

- Giving advices on investment, science and technology as well as on technology transfer;

- Executing industrial, civil and traffic construction works;

- Providing services of forwarding goods and leasing warehouses and yards;

- Constructing electric works up to 35KV;

- Trading houses (constructing and repairing houses for sales or for lease);

- Providing data communication, file transfer and remote access services, as well as providing service of data access by different methods;

- Acting as agent to provide ISP and OSP services, providing information on the internet (only operating when being granted a license as stipulated by the laws);

- Providing services of information storage and supply;

- Organizing fairs, exhibitions, conferences and seminars.

Material effects on the company’s operations

In the period, the company has increased its prescribed capital from VND 500,000,000,000 up to VND 1,000,000,000,000 in which the increase from profit is VND 100,000,000000 and the amount mobilized from further issuing shares to shareholders is VND 400,000,000,000. As of 30 June 2007, total number of shares already issued is 62,516,000 shares.

Besides, the company has made further investments in its subsidiaries, Tan Duc Investment Corporation and Ita Power Company, as well as in its business associates including Dong Nam A Joint Stock Company, Tan Tao Investment Joint Stock Company and Tan Tao Urban Investment and Development Joint Stock Company.

Financial position and business results

The financial position as of 30 June 2007, the business results and the cash flows for the first 6 months of the fiscal year ending 31 December 2007 of the company have been expressed in the interim financial statements attached to this report (from page 06 to page 30).

Subsequent events

The Directors of the company hereby confirms that there have been no events from 30 June 2007 to the date of this report, which need any adjustments on the figures or the disclosures in the interim financial statements.

Board of Management and the Executive officers

The Board members and the Executive officers of the company during the period and as of the date of this report include:

The Board of Management

The Control Board

The Directors

Auditors

Auditing and Consulting Company Limited (A&C) havs performed the audit on the company’s financial statements for the first 6 months of the fiscal year ending 31 December 2007.

Confirmation of the Directors

The Directors of the company is responsible for the preparation of the financial statements to give a true and fair view of the financial position as of the balance sheet date, the business results and the cash flows of the company for each of the company’s fiscal year. In order to prepare these financial statements, the Directors must:

§ select the appropriate accounting policies and apply them consistently;

§ make judgments and estimates prudently;

§ announce the accounting standards to be followed for the material issues to be disclosed and explained in the financial statements;

§ prepare the financial statements of the company on the basis of the going-concern assumption, except for the cases that the going-concern assumption is considered inappropriate.

The Directors hereby ensure that all the requirements mentioned above have been followed when the interim financial statements are prepared, that all the accounting books of the company have been fully recorded and can fairly reflect the financial position of the company at any time, and that all the interim financial statements have been prepared in compliance with the Vietnamese accounting system and standards.

The Directors are also responsible to protect the assets of the company, and consequently have proceeded appropriate measures to prevent and to detect frauds and other irregularities.

We, the Directors of the company, hereby confirm that all the accompanying interim financial statements have been properly prepared and have given a true and fair view of the financial position as of 30 June 2007, the business results and the cash flows for the first 6 months of the fiscal year ending 31 December 2007 of the company in compliance with the Vietnamese accounting standards and system as well as other related regulations.

For and on behalf of the Directors