Ref.: SCG-SET-10-013 August 4, 2010 Re: Explanation of Results of Operating Results To: Managing Director Stock Exchange of Thailand The Company and its subsidiary had generated a net profit of the 3rd quarter ended June 30, 2010 amount of. Baht 58 million for the consolidated and Baht 76 million for the Company only respectively. The respective increase of Baht 12 million or 26.97%, and Baht 26 million or 52.32% from the previous year was factored bys 1. The increase of Baht 29 million of Gross profit The gross profit was increased by Baht 29 million resulted from and the cost of sales was Baht 22 million higher due to the following reasons: The revenue : Baht 50 million increase - Incremental electricity and steam sales. - Incremental other revenues amount of Baht 5 million higher. The cost of sales : Baht 22 million increase 2. The increase was much lower in comparing with the incremental revenues due to the improved plant efficiency and no lease engine operating fee in the 2Q10.Administration and Remuneration Expenses increased by Baht 14 million The Board of Directors decided to impaire the project assets of the subsidiary by Baht 12.6 million. Financial Expense and Corporate Income Tax - The financial expenses were increased by Baht 2 million due to the utilization of long term loan for the investment on the Lamphun Biomass Power Plant Project. - - The income tax was increased by Baht 5 million in relation to the Non-BOI earnings. Please be informed accordingly Yours sincerely, (Mr. Viroj Theeravatvatee) Managing Director