SET Announcements

(Translation) No. CK-07-0000-AFD-L-0583 December 28, 2007 Re: Transaction of Loans to Subcontractors and Transaction of Long-Term Loans to Other Companies Attn.: President The Stock Exchange of Thailand Reference: 1) Letter of the Stock Exchange of Thailand No. BorJor.102/2550 dated March 30, 2007; 2) The Notification of the Board of Governors of the Stock Exchange of Thailand, Re: Disclosure of Information and Other Acts of Listed Companies Concerning Connected Transactions B.E.2546 (2003); 3) Letter of CH. Karnchang Public Company Limited No. CK-07-0000-AFD-L-0226 dated April 25, 2007; 4) Interim Financial Statements for Three-Month and Nine-Month Periods Ended September 30,2007 and 2006. According to References 1, 2, 3 and 4, CH. Karnchang Public Company Limited has been disclosing the information in the Company's notes to financial statements, on the transaction of loans granted by CKAE Consortium to subcontractors and the transaction of long-term loans due within one year granted by Joint Venture CKET to other companies. Modern Construction Material Company Limited, "MCM", and Best Plan Technology Company Limited, "BPT", as subcontractors of CKAE Consortium, "CKAE", issued letters requesting an extension of time for the loan repayment to CKAE on November 26, 2007 and November 27, 2007, respectively, since they were affected by an increase in prices of construction materials and a considerable decrease in the number of construction projects in the year 2007. MCM's outstanding principal of the loan as at November 30, 2007 amounts to Baht 54.8 Million with accrued interest of Baht 0.1 Million and BPT's outstanding principal of the loan amounts to Baht 209.7 Million with accrued interest of Baht 43.5 Million. An extension of time is sought to change from repayment in full by no later than December 31, 2007 to repayment in full by no later than December 31, 2008. Moreover, Rayong Real Estate Company Limited, "RY", and Private Inter Construction Company Limited, "PIC", as borrowers of loans from Joint Venture CKET, "CKET", issued letters requesting an extension of time for the loan repayment to CKET on November 29, 2007 due to economic slowdown in the year 2007, rendering the property development project did not go as planned, hence the delayed repayment. However, RY expects that in the year 2008, it is possible for the real property business sector to grow materially according to the new government's policy on the national- development. As a result, RY expects to gain more and sufficient income to make such repayment. As at November 30, 2007, RY's outstanding principal of the loan amounts to Baht 1,120.9 Million with accrued interest of Baht 156.6 Million and PIC's outstanding principal of the loan amounts to Baht 142.7 Million with accrued interest of Baht 3.5 Million. An extension of time is sought to change from repayment of at least half of the loan by no later than December 31, 2007 with the remaining amount to be repaid in full by no later than June 30, 2008 to repayment of half of the remaining amount by no later than December 31, 2008 and repayment in full by no later than June 30, 2009. In this regard, such four companies are unable to perform in accordance with the transaction of the loans granted to the subcontractors and the transaction of the long-term loans due within one year granted to other companies as disclosed in the Company's notes to financial statements. Considering the gradual payments of interest expenses and partial principal repayments by the said four companies, based on the Company's joint investment proportions, amounting to Baht 746.9 Million, namely, to CKET in the amount of Baht 217.4 Million and to CKAE in the amount of Baht 529.5 Million, as well as RY's offer to sell the land used as loan security with CKET to offset the loan in case CKET accelerates the repayment of loan as per the existing schedule, and based on the reasons given to CKET and CKAE by such four companies, as well as the loan security, the Board of Directors of CKAE and CKET then grant an extension of time for the loan repayment to such four companies on December 3, 2007 and December 11, 2007, respectively, as per their requests since they are of the view that the repayments remain possible. In this regard, both the joint venture and the consortium have already proposed such matter to the Company's Executive Board's Meeting No. 18/2007 on December 21, 2007 for consideration and approval. The Company therefore informs the Stock Exchange of Thailand of such matter for consideration and information. Please be informed accordingly. Very truly yours, -Signature- (Mr. Prasert Marittanaporn) Director and Executive Vice President Accounting and Finance 2