14th August, 2007. The President The Stock Exchange of Thailand Dear Sir, Clarification on Operating Results for the Second Quarter of 2007 for Haad Thip Plc. The Company's operating results for the second quarter of 2007, which has been reviewed by external auditors,showed a net loss of THB 9.01 million,a decrease of THB 23.21 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 11.50 million or 2.07%, mainly due to a price increase initiated in May 2006. However, an intensified competition in the modern trade channel this year plus a general economic slowdown have resulted in a lower-than-expected sales growth. 2. Cost of goods sold increased by THB 20.88 million or 5.13% and exceeded the growth rate in sales revenue. Thus resulted in lower gross margin during Q2 of 2007. 3. In line with the general market trend,the decline in the sales volume of our Returnable Glass Products, which command a high profit margin per case than the one-way PET products, has a negative impact on our P/L. Moreover, the sale of one-way PET products, which are mainly sold through the Modern Trade channel, faces aggressive price competition. 4. Increases in selling,general and administrative expenses by THB 22.99 million or 13.40% were registered. This was largely due to extra costs, including rebates and marketing expenses incurred as part of sales effort to the modern trade customers as mentioned in (3). Annual salary adjustment in April 2007 had also an upward impact on cost. Other cost increase includes the salary payment for a few senior executives who have been recruited to lead the company's capability-building programme. 5. The higher costs, notably, Fuel, Concentrate, Sugar, CO2, and Excise Tax all impacted our financial performance and resulted in a net loss for the quarter. The above are the main reasons for the decline in the Company's net profit in the second quarter of this year. However, we expect that in the next 6 months our financial performance will improve mainly due to tighter budget controls that are now in place, and also the deliverables that the newly recruited senior executives will make in terms of improving efficiency and skills of our existing staff. 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