Clarification STEC's FS Q2/2005

Ref. No. : A/C ST. 0667 / 2005 August 8, 2005 Subject : Clarification of STEC' s financial statement ended 30 June 2005. 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 June 2005 which shows the increased of net profit in the amount of Baht 81.82 million equal to 201.82% for the three month period and Baht 122.37 million equal to 120.74% for the six month period comparing to the same period of the previous year due to the following reasons: The company's revenue from construction increased to Baht 1,723 million equal to 95.18% for the three month period and Baht 3,584 million equal to 104.43% for the six month period, which affected to gross margin for the three month period and six month period increase to Baht 97.20 million and Baht 141.34 million respectively. In addition, the increasing of company's net profit caused by not only increasing of revenue but also increasing of percentage of gross profit margin of the projects. Please kindly be informed. Yours sincerely, ___________________________ (Mr. Woraphant Chontong) Director