08 May 2007

To notify the 20% decrease of the generated earning from ope

Ref. SCG-SET-07-010 May 4, 2007 To: The President The Stock Exchange of Thailand Re: To notify the 20% decrease of the generated earning from operating activities Sahacogen (Chonburi) Public Company Limited is pleased to notify that the net income of the operating activities for the first quarter ended March 31, 2007 was 79.33 million Baht, 26.90 million Baht or 25.32% lower than the previous year. This was primarily resulted from following major factors:- 1. Cost of Sales This year during January- February the gas turbine #1 was removed for the scheduled hot section repair, therefore the leased engine had to be installed and the operating fee amount of 4.74 million Baht was imposed and accounted in the first quarter. This was the incremental leased engine expenses in comparing with the previous year. 2. Administrative expenses In 2007 the planned power business expansion was continually implemented and resulted in the incremental expenses of additional employees, consulting fees, overhead associated with the project feasibility study amount of 11.21 million Baht in comparing with the first quarter 2006. 3. Interest Expenses The low fixed interest rate of 3.625% had been ended and replaced by the floating rate MLR-2 since June 30, 2006, therefore, the interest expenses paid in the first quarter of 2007 was based on the high MLR of 7.50 % resulting an increase of 7.89 million Baht from the same period of 2006. . Sincerely yours (Mr. Viroj Theeravatvatee) Managing Director