SET Announcements

(Translation) No. CK-06-0000-PO-L-0018 January 12, 2006 Re: Additional Clarification on Purchase of Ordinary Shares in Water Flow Co., Ltd. Attn.: The President of the Stock Exchange of Thailand Reference is made to the fact that the Executive Board Meeting No. 1/2006 of CH. Karnchang Public Company Limited, held on January 10, 2006, passed resolution granting approval for Thai Tap Water Supply Co., Ltd. (Subsidiary) to purchase 99,994 ordinary shares or 99.994 percent of the registered capital in Water Flow Co., Ltd. from the existing shareholder as at the transaction date, at the price of not exceeding Baht 7,000 per share, for the total amount of not exceeding Baht 669,958,000. The Company hereby submits additional clarification as follows: 1. The purchase price of such shares is lower than the Company's estimated price, which used the method of assessment of the value of business of Water Flow Co., Ltd. based on the net present value of the cashflow (Discount Cashflow), taking into account the projected cashflow of Water Flow Co., Ltd. which should be derived in each year in the future. Furthermore, as Water Flow Co., Ltd. operates the business of providing services for production and maintenance of the water filter plant for Thai Tap Water Supply Co., Ltd., therefore, once Thai Tap Water Supply Co., Ltd. has purchased such shares in Water Flow Co., Ltd., the cost management of Thai Tap Water Supply Co., Ltd. would improve, which is intended to organize the management structure of Thai Tap Water Supply Co., Ltd. for preparation for further listing on the Stock Exchange of Thailand. 2. The seller of such shares in Water Flow Co., Ltd. is the existing shareholder as at the transaction date, namely Advance Assets Associates Limited, a foreign legal entity incorporated in England. Please be informed accordingly. Very truly yours, = signature = (Mr. Anukool Tantimas) Executive Vice President Human Resource and General Administration