Clarification of STEC's financial statement 30/9/07

Ref. No.: A/C ST.0892/2007 November 13, 2007 Subject : Clarification of STEC' s financial statement ended 30 September 2007. To : President of the Stock Exchange of Thailand Dear Sirs, We, Sino-Thai Engineering & Construction Public Company Limited and Its Subsidiaries, would like to provide the clarification on quarterly Consolidated financial statement ended 30 September 2007 which shows net(loss) profit in the amount of Baht 42.71 million for the three month period and Baht 204.60 million for the nine month period comparing to the same period of the previous year at Baht 11.26 million and Baht (1,793.99) million respectively due to the following reasons: 1. The company and subsidiary companies's gross(loss) margin for the nine months period was amount Baht 396.68 million comparing to the same period of the previous year was amount Baht (1,569.75) million. These amounts reflect the increased of Baht 1,966.44 million , which equal to 125.27% due to last year the company had reserved for loss on construction for long term project and had recorded the whole amount of loss into its accounts. 2. During the third quarter of the current year, the Company entered into a compromised agreement with a local company, whereby payment of Baht 45.2 million was requested in settlement of long outstanding receivables totaling Baht 89.2 million, and such amount was received in the same quarter. The Company had previously set aside full allowance for bad debt for this receivable and as a result of the composition agreement, the Company therefore recorded Baht 40.7 million of the amount received as income from settlement of doubtful debt. The rest, which is compensations for legal expenses, was recorded as other income. Please kindly be informed. Yours sincerely, ___________________________ (Mr. Woraphant Chontong) Director