Clarification of STEC's financial statement Q1/2007

Ref. No.: A/C ST. 0340/2007 May 14, 2007 Subject :Clarification of STEC' s financial statement ended 31 March 2007. 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 quarterly financial statement ended 31 March 2007 which shows the decreased of net profit in the amount of Baht 22.38 million equal to 55.04% comparing to the same period of the previous year due to the following reasons: 1. The company entered into a forward exchange conditional contract to hedge currency risk of JPY denominated payable, which affected the company foreign exchange loss's increased amount Baht 14.82 million from the same period of the previous year. 2. The company interest income's decreased amount Baht 4.80 million from the same period of the previous year. Please kindly be informed. Yours sincerely, ___________________________ (Mr. Woraphant Chontong) Director