15th August, 2006. The President The Stock Exchange of Thailand Dear Sir, Clarification on Operating Result for the Second Quarter of 2006 The Company's operating results for the second quarter of 2006, which has been reviewed by external auditors, showed a net profit of THB 14.20 million, an increase of THB 8.15 million or 134.71% from the same period of last year. The improvement in net profit was due to the following reasons; 1. Net sales revenue increased by THB 42.31 million or 8.24%. This was mainly due to an increase in selling price during May 2006 in order to offset previous increases in raw materials cost, specifically sugar and energy. 2. Other income increased by THB 9.1 million or 134.52%. Most of this amount was obtained as transshipment payment, from one of the Company's trading partners, as a compensation for opportunity loss incurred by the Company from having their products shipped and sold within our territories. 3. Management's on-going effort to reduce the operating costs resulted in a satisfactory cost containment, despite a significant rise in cost of energy. The above are the main reasons for the improvement in the Company's net profit in the second quarter of this year Yours faithfully, For Haad Thip Public Company Limited Sec. Lt. (Phairoch Rattakul) President & CEO Office of the Managing Directod Tel. 0-2391-4488 Ext. 108