14th November, 2007. The President The Stock Exchange of Thailand Dear Sir, Clarification on Operating Result for the Third Quarter of 2007 The Company's operating results for the third quarter of 2007, which has been certified by external auditors, showed a net profit of THB 2.24 million, a decrease of THB 16.24 million, which exceeded a 20% decline from the same period of last year. The reduction in net profit was due to the following reasons; 1. Price competition remains intense in the softdrinks industry and the modern trade customers continued to dictate almost unilaterally pricing of products sold to them thus causing sales revenue to fall short of expectations. Revenue during the third quarter increased by THB 34.7 million or 6.47%. Moreover, economic uncertainty and high oil prices had negatively impacted consumer confidence which, in turn, resulted in lower-than-expected sales revenue. 2. Cost of goods sold increased by THB 37.6 million or 9.58% and exceeded the growth rate in sales revenue, thus resulted in lower gross margin during 3Q07. The main factors impacting cost of goods sold are higher cost of oil, concentrate, sugar, bottle, case and excise tax. 3. The continuous decline in sales volume of the Returnable Glass Bottle (RGB), which yields higher margin than the PET products, as a result of changing consumers' behavior who currently prefer to purchase the PET products from modern trade outlets in order to consume at home. 4. A significant increase in selling, general and administrative expenses by THB 28.68 million or 17.47%. This was largely due to extra costs associated with sales effort to the modern trade customers, which included rebates, and as previously mentioned in (3). An increase in transportation cost as a result of high oil prices had also an upward impact on cost. The above are the main reasons for the decline in the Company's net profit in the third quarter of this year. Yours faithfully, For Haad Thip Public Company Limited Sec.Lt. (Phairoch Rattakul) President & CEO Office of the Managing Director Tel.0-2391-4488 Ext.103