SET Announcements

(Translation) No. CK-10-0000-PO-L-0050 July 6, 2010 Re: Notification of Establishment of the Subsidiary and Signing of the Memorandum of Understanding Attn.: President of the Stock Exchange of Thailand Reference is made to the fact that on March 26, 2010, CH. Karnchang Public Company Limited notified the Stock Exchange of Thailand of the resolutions of the Board of Directors'Meeting No. 2/2010 regarding approval of establishment of a subsidiary and signing of the memorandum of understanding. The Company hereby informs the establishment of the subsidiary and the signing of the Memorandum of Understanding as follows: 1. On June 10, 2010, the Company registered for establishment of the subsidiary named Xayaburi Power Company Limited for the purpose of accepting the electricity production concession from the Lao People's Democratic Republic, with a registered capital of US$ 25,000,000, in which the Company holds 95 percent of shares and P.T. Construction & Irrigation Company Limited holds 5 percent of shares. 2. The Company signed the Memorandum of Understanding ("MOU") with the Electricity Generating Authority of Thailand (EGAT) on July 5, 2010. Such MOU involves the sale of an average 1,220 MW of electricity at the levelized tariff of Baht 2.159/kWh and the MOU shall be valid for 18 months from the signing date or until the Power Purchase Agreement would be signed, whichever occurs first. Please be informed accordingly. Very truly yours, - Signature - (Mr. Plew Trivisvavet) Chief Executive Officer