(TRANSLATION)

Ref: DY/SEC/003/2007

10 August 2007

Subject: Explanation of the 2nd quarter 2007’s operating result which has varied by 20 %

over or under that of the preceding year

To: The Secretary

The Office of the Securities and Exchange Commission

Christiani & Nielsen Thai PCL. would like to explain the reasons for the actual operating result varying by 20% from the preceding year.

The Company would like to inform that for the six-month period ended 30 June 2007, the Consolidated net profit of Baht 18 million decreased from the same period in previous year by Baht 13 million, as in year 2007, the Costs of Construction increased due mainly to the increase of oil prices, wages and transportation, which caused the cost of construction to also increase. For this reason, the Consolidated gross margin decreased by Baht 12 million, with a decrease of other income by 1 million.

For the Separate Financial Statement, the net profit for the six-month period ended 30 June 2007 of Baht 8 million decreased from the same quarter in the previous year by Baht 28 million due to a decrease of the gross margin of Baht 9 million, for the above-mentioned reasons. In addition, in year 2007 the Company had a decrease of dividend income from the Joint Venture and other income of Baht 8 million and Baht 2 million respectively, including the increment of depreciation and administrative expense of Baht 9 million.

Furthermore, the Company would like to clarify that during the fourth quarter of 2006, the Company changed its accounting policy for recording investments in subsidiary companies in the separate financial statements from the equity method to the cost method, in compliance with Notification No. 26/2549 regarding Accounting Standard No. 44 “Consolidated Financial Statements and Accounting for Investments in Subsidiaries” (Amendment No. 1), issued by the Federation of Accounting Professions, under which investments in subsidiaries, jointly controlled entities and associates are to be presented in the separate financial statements under the cost method rather than the equity method.

During the current period, the Company has restated the separate financial statements for the three-month and six-month periods ended 30 June 2006, as though the investment in the subsidiary companies had originally been recorded using the cost method. The change has the effect of decreasing net income in the separate income statement for the three-month period ended 30 June 2006 by approximately Baht 6 million (Baht 0.02 per share) and increasing net income for the six-month period then ended by approximately Baht 5 million (Baht 0.01 per share). The cumulative effect of the change in accounting policy has been presented under the heading of “Cumulative effect of the change in accounting policy for investments in subsidiary companies” in the separate statements of changes in shareholders’ equity. However, the change of accounting policy did not have any effect on the consolidated financial statements.

Please be informed accordingly.

Yours faithfully,

Christiani & Nielsen (Thai) Public Company Limited

Signature –

(Mr. Danuch Yontararak)

Managing Director

CC: Vice President, Listed Company Department

The Stock Exchange of Thailand