Clarification of STEC s financial statement Y2007

Ref. No.: A/C ST.0131/2008 February19, 2007 Subject : : Clarification of STEC' s financial statement ended 31 December 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 Consolidated Financial Statement ended 31 December 2007 which showed net profit at Baht 21.67 million comparing to the previous year net loss at Baht (1,779.68) million due to the following reasons: 1. The company and its subsidiaries' gross profit for 2007 was amount Baht 300.31 million comparing to the previous year gross loss at Baht (1,507.37) million. 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. 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 forbad 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. 3. The company and its subsidiaries' recorded share of income from investments in associates at Baht 15.57 million in 2007. Where as in 2006 the company and its subsidiaries' recorded share of loss from investments in jointly controlled entities and associates at Baht (17.87) million Please kindly be informed. Yours sincerely, ___________________________ (Mr. Woraphant Chontong) Director