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Clarification performance of Q2/2007 as at 30 June 2007

Syntec Construction Public Company Limited ( "SYNTEC " ), would like
to clarify the Company and Joint Ventures Financial Statement ending on 30 June 2007 , showed a total profit of Bt53.804 million, while the same fiscal period of performance of 2006 showed a total profit of Bt23.373 million, increasing by Bt30.431 million or increasing of 130.20%.
The reasons for the change of 2007’ performance more than 20% is by the increasing of Sales of goods and rendering of service in 2007 is Bt1,177.514 million compared to the same period of 2006 is Bt714.241 million, increasing by Bt463.273 million (64.86%) that affected to Gross Margin in 2007 is Bt 141.096 million, increasing by Bt85.372 million (153.21%).
Furthermore, SYNTEC would also like to point out that according to the Federation of Accounting Professions’ announcement number 26/2006, using the cost-method has resulted in a profit of Bt. 55.379 million that more than equity-method by Bt15.785 million. Moreover, this accounting policy change will not effect on the consolidated financial statements of the Group. (as the details of Financial Statements Notes No.11)

Furthermore, the progressive status of loans to related parties are
as follows:
1. Short-term Loans to Related Parties
Joint Venture (JV)
-JV between the Company and Federal Engineering Co.,Ltd., valued at Bt11.40 million (fully provision). Increasing by Bt0.01 million from the
auditing payment. In the 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 Bt2.03 million. Furthermore, Syntec will follow up for the rest debt from Metropolitan Electricity Authority (MEA) .
-SVK JV. valued at Bt3.41 million. Furthermore, Syntec will follow up for the rest debt from The Thai Airways International Plc.
-SSU JV. valued at Bt0.28 million increasing by Bt0.03 million from the auditing payment. Furthermore, Syntec will follow up for the rest debt from The Aeronautical Radio of Thailand Co.,Ltd.
-SM JV. valued at Bt35.05 million increasing by Bt5.95 million from
the projects that has on-going with 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 Bt23.00 million. Furthermore, Syntec will submit the petition to the Execution Department for the repayment.
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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