SET Announcements

(Translation) Ref. SS. / 0505 / 2008 28 February 2008 Subject : Clarification of the effect from Changing Accounting Policy for investments. To : President The Stock Exchange of Thailand Sansiri Public Company Limited ("the Company") would like to report on the effect of the change in accounting for investment in subsidiary companies as follows: For the year ended 31 December 2007, the Company changed its accounting policy regarding investment in subsidiary companies so that separate financial statement, which formerly reported investment using the equity method, now reports using the cost method, This is to comply with TAS 44. Thus the company restated its financial statement by using the historical cost as the cost of the investment in subsidiary companies of the separate financialstatement. 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 income of Baht 707.93 million for the year ended 31 December 2007, according to the consolidated financial statement. However, the separate financial statement over the same period showed a net income of Baht 342.96 million. Furthermore, the Company would like to clarify with the additional information as follows: 1. After restating, net income for the year ended 31 December 2007 and the comparable period in 2006 decreased by Baht 364.96 million (Baht 0.25 per share) and Increase Baht 20.77 million (baht 0.01 per share), respectively, This is because the separate financial statement did not include any share of profits or losses from investments. 2. The restating on the separate financial statement for the year ended 31 December 2007 affected to investment in subsidiary companies and the shareholders equity on the balance sheets, decreased by Baht 443.63 million. The cumulative effect of the accounting policy has been presented under the heading of Changes in accounting policy in the separate financial statement in the statement of changes in shareholders equity. However, the change of accounting policy affects only the separate financial statement. It did not have any effect on the consolidated financial statements or business fundamentals. Please be informed accordingly. Yours sincerely, (Mr. Wanchak Buranasiri) Senior Executive Vice President