ACC.003/08 25 February 2007 President The Stock Exchange of Thailand Subject : Clarification of a change in accounting for investment Notification of the Federation of Accounting Professions (FAP) no. 26/2006 TAS 44, Consolidated Financial Statements and Accounting for Investment in Subsidiaries, requires companies to change accounting methods for investments in subsidiaries in subsidiaries and affiliates from the equity method to the cost method as reported in separate financial statements. Such an adjustment leads net income and retained earnings in the separate financial statements to differ from those in the consolidated financial statements. Nonetheless, this is merely a change in accounting policy, not a change in any fundamental factors affecting our business. The Company would like to report on the effect of the change in accounting for investment in subsidiary as follows: In the year ended December 31, 2007, the Company changed the accounting policy regarding investment in subsidiary so that the separate financial statement, which formerly reported investment using the equity method, now reports using the cost method. This is to comply with TAS 44. Thus the Company restated the financial statement by using the historical cost as the cost of the investment in subsidiary of the separate financial statement. This adjustment caused the net income on the separate financial statement to differ from that reported in the consolidated financial statement. The Company had net income of Baht 28.81 million for the year ended December 31,2007, according to the consolidated financial statement. However, the separate financial statement over the same period showed a net income of Baht 61.92 million. Therefore, the Company would like to clarify with the additional information as follows: 1.After restating, net income for the year ended December 31, 2007, on the separate financial statement increased by Baht 33.75 million from net profit Baht 61.92 million and the comparable period ended December 31, 2006 decreased by Baht 21.27 million from net profit Baht 30.25 million to Baht 8.97 million, respectively. (That is, increased by Baht 0.27 per share and decrease Baht 0.17 per share, respectively.) This is because the separate financial statement did not include any share of profits from investments. 2.The effect from the restating to other items on the separate financial statement for the year ended December 31,2007, such as the unappropriated retained earnings on the consolidated balance sheets, decreased by Baht 59.33 million from retained earning Baht 139.59 million to retained earnings Baht 80.27 million. The cumulative effect of the accounting policy has been presented under the heading of "Cumulative effect of the change in accounting policy for investments in subsidiaries in the separate financial statements" in the statement of changes in shareholders' equity. However, the change of accounting policy affects only the separate financial statement. It did not have any effect on the consolidated financial statement or business fundamental. Please be informed accordingly. Yours sincerely, (Noppadon Tansalarak) Director (Phiched Maneerattanaporn) Director