Clarification FS of STEC Q3/2005

Ref. No. : A/C ST. 0879 / 2005 November 1, 2005 Subject:Clarification of STEC' s financial statement ended 30 September 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 September 2005 which shows the increased of net profit in the amount of Baht 135.35 million equal to 1,189.85% for the three month period and Baht 257.71 million equal to 228.62% for the nine month period comparing to the same period of the previous year due to the following reasons: The company's revenue from construction increased of Baht 909 million equal to 41.92% for the three month period and Baht 4,493 million equal to 80.23% for the nine month period, which affected to gross margin for the three month period and nine month period increase of Baht 121.51 million and Baht 262.84 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