Ref. SCG-SET-07-013 August 7, 2007 To: The President The Stock Exchange of Thailand Re: Dividend Payment Policy and Related Transactions Dear Sir, Please be notified as following:- 1. The Board of Directors' Meeting No. 5/2007 of Sahacogen (Chonburi) Public Company Limited, is held on August 7, 2007, has passed the resolution of the dividend payment policy to be compliance with the notification no. 44 of the Federation of Accounting Professions, under the subject of "The record of an investment in subsidiaries on the separate financial statements under the cost method rather than the equity method. Therefore, the company would like to clarify the direction of dividend payment as follow. The company has a dividend payment policy to pay not less than 80% of net profit of the financial statements of the company only. The Board of Directors may occasionally waive or adjust this policy by consideration a condition creating the maximum benefit to the shareholders, such as reserves for debt services or for serving any needs during the market changes causing adverse impact to the company cash flow in the future and/or for expanding the business. While the dividend payment of subsidiaries that the company holds its share more than 50% is significantly considered on cash requirement of the company and its subsidiaries. 2. The Board of Directors considered that the purchase orders for the erection of buildings and utilities given by Shakoes Kabinburi Company Limited (the company's subsidiary) to Pitakkij Co., Ltd. which has the common directors, Pitakkij Co., Ltd, were normally required for operating the business and had been thoroughly evaluated against the other independent bidders, therefore, such transactions are normal business transactions and the management can make necessary judgment to proceed accordingly under the given authorization. Please be informed accordingly. Sincerely yours, (Mr. Viroj Theeravatvatee) Managing Director