1st March, 2007. The President The Stock Exchange of Thailand Dear Sir, Clarification on Operating Result for the Year 2006 The Company's operating result for the year 2006, which has been audited by external auditors, showed a net profit of THB 50.96 million, an increase of THB 38.47 million or 308.00% from the same period of last year. The improvement in net profit was due to the following reasons; 1. Net sales revenue increased by THB 309.82 million or 16.45%.This was mainly due to an increase in selling price during May 2006. This price increase mitigated to some degree the previous increases in raw materials cost as well as distribution cost, ie. higher oil price. Despite the price increase, the Company's gross margin suffered a reduction of 1.91% in 2006. 2. A reduction in selling, general and administrative expenses (SG&A) by THB10.52 million or 1.54%. This was due to management's on-going effort to reduce the operating costs. 3. An economic recovery in the Andaman coast areas and the tourist destinations in The Gulf of Thailand ie. Samui, Koh Tao and Phangan Islands, which had been affected by the Tsunami at the end of 2004, as well as a favorable climatic condition whereas rains and floods did not have a significant impact on sales volume as in the previous years. The above are the main reasons for the improvement in the Company's net profit in the year 2006. 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