Clarification financial Statement Y2004

Ref. No. : A/C ST. 0125 / 2005 24 February 2005 Subject : Clarification of STECON' s financial statement ended December 31, 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 yearly financial statement ended 31 December 2004 which shows the decrease of net profit in the amount of Baht 480.30 million equal to 79.53% comparing to the previous year due to the following reasons: 1. The company has recorded share of profit from investments accounted for under equity method Baht 15.71 million in this year. Whare as in 2003 the company recorded share of profit from investments accounted for under equity method Baht 42.04 million equivalent to 62.62% decreased for the previous year. 2. In 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 this year. 3. In 2003, the company recorded gain on sale of long-term investments Baht 51.83 million. Whereas no transaction has been done in this year. 4. The company 's gross margin for this year were amount Baht 339.55 million. Whereas the previous year were amount Baht 713.59 million. These amounts reflect the decreased of Baht 374.04 million equal to 52.42% due to the increasing of main material prices. 5. Interest expense increased at the amount of Baht 19.76 million for the previous year since the company issued the unsecured amortizing debenture. Please kindly be informed. Yours sincerely, ___________________________ (Mr. Woraphant Chontong) Director