SET Announcements

(Translation) Ref. SS./ 3147 /2007 14 August 2007 Subject : The Explanation for the cause of the change in the Company's performance with respect of the 2nd quarter of 2007 financial statement of the Company ending 30 June 2007. To : President The Stock Exchange of Thailand Referring to Sansiri Public Company Limited's the 2nd quarter of 2007 financial statement of the Company ending 30 June 2007, it has reported a profit which varied more than 20%,compared to the previous year. With this regard, the Company would like to explain as the following. 2nd quarter performance earned a decline by 55%, showing 46 million baht profit compared to year before's of 101 million baht. Total revenue of this quarter slightly expanded by 5% to 2,921 million baht meanwhile total expenses grew at higher escalation of 7% to 2,776 million baht. Both items made net profit before interest and tax displayed a decline of 24% from last year's. Major factors of such expenses came from cost of project sales and selling and administrative expenses. Revenues from project sales slightly went up by 3% to 2,707 million baht however cost of project sales increased beyond such rate to 1,942 million baht making profit of this kind of revenue dropped from 29% to 28% due to an extensive stiff competition of sales under current unfavorable economy. Administrative expenses became larger to encourage a consistently increase of various projects investment scattered around.Selling expenditures behaved likewise to serve a continuously higher sale quantity nevertheless such burdens could not be recorded parallel with future realized revenue of those existing sales. This would be the principal factor that has resulted in more than 20% variance of the profit of the Company and its subsidiaries when compared to the previous year. Therefore, we inform you respectfully. Yours sincerely, ........................ (Mr. Wanchak Buranasiri) Director ........................ (Mr. Thalin Aeimtitiwat) Director