ข่าวแจ้งตลาดหลักทรัพย์

REF: CK-07-0000-AFD-L-0229 August 14, 2007 Subject: Declaration of Operating Result of the Second Quarter Ended June 30, 2007 Compared with the Second Quarter Ended June 30, 2006 Attention: President The Stock Exchange of Thailand The operating result of CH.Karnchang Public Company Limited, subsidiaries and joint ventures ofsecond quarter for the three-month and six-month periods ended June 30, 2007 reached the profitincreased by 122.6% and the profit decreased by 53.3% respectively, as compared with the same fiscalyear due to the following significant factors: 1. In the second quarter of 2007 for the three-month period, the company had gained on sales of investments in associated companies for approximate amount of Baht 574.8 million as well as the company had gained on share of profit from investments in associated companies for under equity method from associated companies. At the same time, the company had share of loss from investments in the associated companies in the same fiscal year of previous year. 2. In the first and second quarters for the six-month period in 2006, the company had gained on sales of short-term investments totaled Baht 1,172 million. The company would like to additionally report the effect from the change in accounting policy for investment in subsidiaries, joint ventures and investment in associated companies as follows: The company changed its accounting policy regarding investment in subsidiaries, joint venturesand investment in associated companies in financial statements on separate financial statement, was changed from equity method report to cost method report in the 1/2007 quarter ended March 31, 2007 in order to comply with TAS 44. Thus, the company restated its financial statement by using the historical cost as the cost of the investment in subsidiaries, joint ventures and investment in associated companies of the separate financial statements. 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 profit of Baht 434.4 million and Baht 469.9 million respectively for the three-month and six-month periods ended June 30, 2007, according to the consolidated financial statement. However,the separate financialstatement over the same period showed a net profit of Baht 828.4 million and Baht 793.8 million respectively. Furthermore, the company would like to clarify the additional information as follows: 1. The effect from the restating of income statement on the separate financial statement for the three-month period ended June 30, 2007 and 2006, compared with the consolidated financial statement in the same period were shown net profit increased of Baht 394 million (Baht 0.29 per share) and Baht 135.1 million (Baht 0.12 per share) respectively. This is because the separate financial statement has excluded share of profit/loss from investment, recorded by using equity method as same as the consolidated financial statement. 2. The effect from the restating to Balance Sheets on the separate financial statement ended June 30, 2007, such as investment in subsidiaries and joint ventures include investment in associated companies increased by Baht 165.3 million resulting in decreasing of balance forward retained earnings by Baht 171.5 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 are subsidiaries, joint ventures and associated companies" in the separate financial statement and in the statement of changes in shareholders equity. However, the change of accounting policy affects only investment in subsidiaries, joint ventures and investment in associated companies in the separate financial statement. It did not have any effect onthe consolidated financial statement or business fundamentals. Kindly please be informed accordingly. Sincerely yours, ( Mr.Plew Trivisvavet ) ( Mr.Prasert Marittanaporn ) Directors