Clarification of the profit of quater 2/2007 changing 20%

Ref.THIP-SET/031/2550 August 14th, 2007 Subject : Filing of Verified Financial Statements for the 2nd Quarter of 2007 and 2006 Attention : Director and Manager SET The Company reported performance for the 2nd Quarter of 2007. There were Baht 2.48 million net profit while there were Baht 8 million net profit at the same period in 2006. The decrease was more than 20% thus the Company would like to clarify the major caused as follows:- 1. Foreign exchange rate of Baht appreciated from 34.47 Baht/US$ in 2nd Quarter 2007 to 37.83 Baht/US$ at the same period in 2006 which 3.36 Baht/US$ or 8.88 % appreciation, this factor caused international sales revenue and profit to decrease 4.76% from the same period in 2006. 2. Cost of good sold was increased 2.97% from the same period in 2006 caused by averaged price of resin was increased form 1.36 US$/kg to 1.17 US$/kg or 16.42% from the same period. 3. There were increased Baht 2.46 million or 7.01% in Sales and management expenses from Baht 35.10 million in 2nd Quarter of 2006 to Baht 37.56 million in 2nd Quarter of 2007 due to 3.1 Increased in Baht 1.27 million of salary expenses 3.2 Adjusted in Baht 1.5 million of tax expense for doubtful account 3.3 Increased in Baht 1.28 million of research and development expenses Please be informed accordingly. Very truly yours, (Mrs.Pojanard Prinyapatpakorn) (Mr.Huang Kuan-Chiun) Authorized Director