Operating Result of the year_2007

May 14, 2008 Subject : Operating Result of the year 2007 To : The Managing Director, the Stock Exchange of Thailand Sabina Public Co., Ltd. would like to clarify the operating result of year 2007 as follows:- In year 2007, Sabina Public Co., Ltd. had the total revenue from sales & service amount 2,067.91 million baht which decreased by 5.86% or equivalent to 128.76 million baht. This was the result from the reducing in sales revenue of OEM department amount 185.41 million baht due to the appreciation of Thai baht toward US dollar and the policy to adjust the company's revenue according to the currency fluctuation by reduced the sales volume from the OEM customers who provide the slight gross profit. The increase sales revenue of 58.85 million baht from Sabina-brand products was unable to compensate with the decrease sales revenue from OEM products.This was the result in reduce of the company's total revenue. The cost of goods sold amount 1,522.77 million baht in year 2007 which decreased by 77.03 million baht or 4.81% from that of 2006. The Company had a gross profit of 545.14 million baht or 26.36% in year 2007. This resulted from basic OEM's products that cannot set high-price and effect in decreased in sales revenue in OEM products and due to the appreciation of Thai baht toward US dollar. The Company had Selling General and Administrative expenses of 397.30 million baht which increased by 30.66 million baht or 8.36% from that of 2006. Due to the first quarter of year 2007,the company had sales promotion expenses for advertising through TV media and other channels in order to increase sales for product under trademark of subsidiary. The company had the increase sales performance amount 147.84 million baht or 7.15% by operating these activities. In year 2007, net profit of the company was 122.72 million baht which decreased by 48.32 million baht or 28.25% the previous year. This was because the result of decreasing in revenue from OEM as above mentioned and increased in interest expenses by 2.81 million baht so the company's net profit margin was 5.86% Please be informed accordingly. Respectfully yours, (Mr.Apisit Jongkittipong) Director