Clarification Stec 3/2004

Ref. No. : A/C ST. 100 / 2004 12 November 2004 Subject : Clarification of STECON' s financial statement ended 30 September 2004. To : President of the Stock Exchange of Thailand Dear Sirs, We, Sino-Thai Engineering & Construction Public Company Limited, would like to provide the clarification on our quarterly financial statement ended 30 September 2004 which shows the decrease of net profit in the amount of Baht 170.81 million equal to 93.76% for the three month period and Baht 338.70 million equal to 75.03% for the nine month period comparing to the same period of the previous year due to the following reasons: 1. The company has recorded share of profit from investments accounted for under equity method Baht 18.15 million for the nine month period . When considering in the same period of the previous year, the company recorded share of profit from investments accounted for under equity method Baht 30.99 million equivalent to 58.57% decreased for the nine month period of the previous year. 2. For the nine month period of 2003, the company reversed the Baht 28.1 million provision for the loss of Joint venture to be other income, since the company had no obligations to the joint venture. Whereas no transaction has been done in the same period of this year. 3. For the nine month period of 2003, the company recorded gain on sale of long-term investments Baht 51.83 million. Whereas no transaction has been done in the same period of this year. 4. The company 's gross margin for the three month period and nine month period were amount Baht 64.86 and 285.77 million respectively. The company's gross margin in the same period of the previous year were amount Baht 196.76 and 476.60 million respectively. These amounts reflect the decreased of Baht 131.90 million equal to 67.04% for the three month period and Baht 190.83 million equal to 40.04% for the nine month period comparing to the same period of the previous year due to the increasing of main material prices. 5. Interest expense increased at the amount of Baht 6.15 and 15.10 million for the three month period and nine month period of the previous year since the company issued the unsecured amortizing debenture. Please kindly be informed. Yours sincerely, ___________________________ (Mr. Vallop Rungkijvorasathien) Director ___________________________ (Mr. Woraphant Chontong) Director