Clarification of STEC'S FS Q1/06

Ref. No.: A/C ST.0317/2006 May 15, 2006 Subject : Clarification of STEC' s financial statement ended 31 March 2006. 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 2006 which shows the decreased of net profit in the amount of Baht 49.95 million equal to 49.28% comparing to the same period of the previous year due to the following reasons: 1. The company 's gross margin for the three months period was amount Baht 113.28 million comparing to the same period of the previous year was amount Baht 158.71 million. These amounts reflect the decreased of Baht 45.43 million, which equal to 28.62% due to the increasing of main material 2. The interest rate from financial market extremely climbed up when compared to the same period of 2005, it is therefore, the Interest expense of the company increased at the amount of Baht 9.09 million comparing to the same period of the previous year. Please kindly be informed. Yours sincerely, ___________________________ (Mr. Woraphant Chontong) Director