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Clarification performance of Q2/2006

No. SYNTEC/MD/06/083

15 August 2006

Subject : Clarification performance of Q2/2006
To : Director and Manager,
The Stock Exchange of Thailand (SET)

Syntec Construction Public Company Limited (SYNTEC),
would like to clarify the Company and Consolidated
Financial Statement ending on June 30, 2006 , showed a
total profit of Bt23.37 million, while the same fiscal
period of performance of 2005 showed a total loss of
Bt(52.51) million, increasing by Bt75.89 million or
increasing of 144.51%.

The reasons for the increasing of performance are as
follows:
1.Sales and services income is Bt714.24 million
copmpared to Bt701.05 million in the same period of
2005, the increasing by Bt13.19 million or increasing of
1.88%.
2.Cost of sales and services is Bt658.52 million
compared to Bt714.68 million in the same period of
2005, the decreasing by Bt56.16 million or decreasing of
7.86%.
3.In 2006, Syntec do not have share of loss from
investment by using equity method compared to Bt10.94
million in the same period of 2005.

Furthermore, the progressive status of loans to related
parties are as follows:
1. Short-term Loans to Related Parties
Associates
-Sathorn Ria Co., Ltd., valued at Bt0.07 million
(fully provision). On the Sep.26th, 2005,The Central
Bankruptcy Court had judged for the receivership and
bankruptcy. Accordingly, SYNTEC had submitted the
petition by the law for the receiving payment on the
Feb.24th , 2006. However, SYNTEC will be follow up the
litigation progression.
Joint Venture (JV)
-JV between the Company and Federal Engineering Co.,
Ltd., valued at Bt11.39 million (fully provision).
Currently, the JV is in the process of document
collection for dissolved registered firm to Revenue
department to dissolve accounting required by the law.
-JV between the Company and Underground Technologies
(Thailand) Co., Ltd., valued at Bt5.785 million. From
the following of the receiving payment progression, the
JV has been still in the process of checking document
of the last payment with Metropolitan Electricity
Authority (MEA).
-SVK JV. valued at Bt8.39 million. Decreasing by
Bt4.7 million was as a receiving from an installed
payments from Thai Airway International Plc.
-SSU JV. valued at Bt0.99 million. Decreasing by
Bt0.09 million was as a receiving from an installed
payments from Aeronautical Radio of Thailand Ltd.
-SM JV. valued at Bt21.79 million. Currently, the JV
has an on-going project and receives installed payments
from National Housing Authority.
Other Related Companies
-Federal Engineering Co., Ltd., valued at Bt20.522
million (fully provision). Currently, SYNTEC is in the
process of document collection for dissolved registered
firm to Revenue department and will set the provision
as the bad debt afterward.
2. Long-term Loans to Related Parties
Joint Venture (JV)
-JV between the Company and Federal Engineering Co.,
Ltd., valued at Bt28.65 million (fully provision).
Currently, the JV is in the process of document
collection for dissolved registered firm to Revenue
department to dissolve accounting required by the law.
-Siam Syntec-Wattana Engineering Joint Venture,
valued at Bt12.18 million (fully provision).Currently,
SYNTEC is in the process of document collection for
dissolved registered firm to Revenue department and
will set the provision as the bad debt afterward.
Associates
-Siam Syntec Holding Co., Ltd., valued at Bt39.70
million (fully provision). Currently,SYNTEC is in the
process of document collection for the pursuit
litigation to the Court.
-Sathorn Ria Co., Ltd., valued at Bt71.02 million.
Syntec has already set provisions valued at Bt30.77
million. On the Sep.26th, 2005, The Central Bankruptcy
Court had judged for the receivership and bankruptcy.
Accordingly, SYNTEC had submitted the petition by the
law for the receiving payment on the Feb.24th, 2006.
However, SYNTEC will be follow up the litigation
progression .
Other Related Companies
-Gentech Engineering Co., Ltd., valued at Bt4.96
million (fully provision). Currently, SYNTEC is in the
process of document collection for the pursuit
litigation to the Court.
3. Other Long-term Loans
The Company has 3 other long-term loans, valued at
Bt183.38 million (fully provision). These loans are
Bt177.76 million to Syntec Genesis Co., Ltd, Bt3.00
million to Metro Fabricator Co., Ltd., and Bt2.62
million to Syntec Foundation Co., Ltd. Currently,
SYNTEC is in the process of document collection for the
pursuit litigation to the Court.

Please be informed accordingly.

Sincerely yours,

(Mr.Somchai Sirilertpanich)
Managing Director

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