ข่าวแจ้งตลาดหลักทรัพย์

REF: CK-07-0000-AFD-L-0328 November 14, 2007 Subject: Declaration of Operating Result of the Third Quarter Ended September 30, 2007 Compared with the Third Quarter Ended September 30, 2006 Attention: President The Stock Exchange of Thailand The operating result of CH.Karnchang Public Company Limited, subsidiaries and joint ventures of third quarter for the three-month and nine-month periods ended September 30,2007 reached the profit decreased by 247.7% and 80.4% respectively, as compared with the same fiscal year due to the following significant factors: 1. In the third quarter of 2007 for the three-month period, the company had loss on exchange rate for approximate amount of Baht 130.1 million as well as the company had gained on exchange rate amount of Baht 50.8million in the same period of last year. Moreover, the company had increased interest expenses of Baht 72.6 million. 2. In the third quarter of 2007 for nine-month period, the company has had an decreasing income from the construction work resulting from the large construction projects which having high value, have been nearly completed such as the Southern Outer Bangkok Ring Road Project, the Ground Improvement for the 1st Midfield Satelite Aporns and the 3rd Runway for the Second Bangkok International Airport Project. Whilst the company's profit had been decreasing on sales of short-term investments totaled Baht 1,253 million. The company would like to additionally report the effect from the change in accounting policy for investments in subsidiaries, joint ventures and investments in associated companies as follows: The company changed its accounting policy regarding investment in subsidiaries, joint ventures and 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 which reported in the consolidated financial statement. The company had net loss of Baht 240.9 million and profit Baht 228.9 million respectively for the three-month and nine-month periods ended September 30,2007, according to the consolidated financial statement. However, the separate financial statement over the same period showed a net loss of Baht 32.4 million and a net profit of Baht 761.3 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 September 30, 2007 and 2006,compared with the consolidated financial statement in the same period were shown net loss decreased of Baht 208.57 million (Baht 0.14 per share) and net profit increased Baht 95.01 million (Baht 0.09 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 September 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 on the consolidated financial statement or business fundamentals. Kindly please be informed accordingly. Sincerely yours, (Mr. Plew Trivisvavet) (Mr. Prasert Marittanaporn) Directors