15th May, 2007. The President The Stock Exchange of Thailand Dear Sir, Clarification on Operating Result for the First Quarter of 2007 The Company's operating results for the first quarter of 2007, which has been reviewed by external auditors, showed a net profit of THB 3.2 million, a decrease of THB 18.25 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. Net sales revenue increased by THB 74.29 million or 13.28%, mainly due to a price increase initiated in May 2006, resulting from increases in raw materials cost. Consequently cost of goods sold increased by THB 64.59 million or 15.64%, which exceeded the growth rate in sales revenue, and thus resulted in lower gross margin during 1Q07. 2. Competition in the Modern Trade channel intensified as selling price was very low in the Bangkok area, which has a knock-on effect on pricing in the South since the Modern Trade operates similar pricing policy for their outlets throughout the whole country. 3. A decline in sales volume of returnable glass bottle (RGB) products which yield higher profit margin than the PET products, which are sold largely in the Modern Trade channel. This resulted in lower profit margin. 4. A not insignificant increase in selling, general and administrative expenses by THB 41.09 million or 26.12% came largely because of reasons stated in (2) ie., having to sell the Company's products at lower prices to the Modern Trade; the other extra cost included rebates and marketing expenses to the trade as a whole. 5. Corporate tax rate was increased from 25% to 30% due to expiration at end of 2006 of a 5-year tax privilege for listed companies by the Stock Exchange of Thailand. The above are the main reasons for the decline in the Company's net profit in the first 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