Clarification of Stec 's FS Q2/10

Ref. No.: A/C ST. 0492 / 2010 August 9 , 2010 Subject : Clarification of STEC' s financial statement ended 30 June 2010. 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 the second quarter consolidated financial statement ending 30 June 2010, which showed net profit for equity holders of the parent company at Baht 95.32 million for the three-month period and Baht 177.05 million for the six-month period comparing to the same periods of the previous year, the amount of net profit for equity holders of the parent company were Baht 42.74 million and Baht 90.46 million respectively, which showed the increase of net profit comparing to the same periods of the previous year in the amount of Baht 52.58 million equal to 123.01% for the three-month period and Baht 86.59 million equal to 95.72% for the six-month period due to the following reasons: 1. Gross profit margin of the company and subsidiaries for the three-month period and six-month period in 2010 were Baht 192.77 million and Baht 369.48 million comparing to the same periods of the previous year, gross profit margin of the company and subsidiaries were Baht 135.00 million and Baht 236.28 million respectively, which showed the increase of gross profit margin in the amount of Baht 57.77 million equal to 42.79% for the three-month period and Baht 133.20 million equal to 56.37% for the six-month period as a result of most projects which have low gross profit margin were finished in the previous year. 2. Financial cost of the company and subsidiaries have decreased from the previous year in the amount of Baht 6.5 million for the three-month period and Baht 15.99 million for the six-month period respectively. Please kindly be informed. Yours sincerely, ___________________________ (Mr. Woraphant Chontong) Director