Clarification of STEC's Financial statement Q2/2008

Ref. No.: A/C ST. 0586 /2008 August 13, 2008 Subject : Clarification of STEC' s financial statement ended 30 June 2008. 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 30 June 2008 which showed net profit of equity holders of the parent Baht 6.30 million for the three month period and Baht 52.10 million for the six month period comparing to same period of the previous year net profit of equity holders of the parent at Baht 130.85 million and Baht 161.89 million respectively due to the following reasons: 1. The company and subsidiary companies's gross profit for the three month period and six month period was amount Baht 117.08 million and Baht 231.07 million comparing to the same period of the previous year at Baht 198.84 million and Baht 314.34 million respectively. These amounts reflect the decreased of gross margin due to the prices of construction materials, wages, oil, and transportation costs have significantly risen. 2. The company and subsidiary companies's recorded share of income (loss) from investment in associate for the three month period and six month period Baht (2.64) million and Baht (9.63) million comparing to the same period of the previous year at Baht 3.23 million and Baht 6.05 million respectively. Please kindly be informed. Yours sincerely, ___________________________ (Mr. Woraphant Chontong) Director