Clarification of Change in Operation Results in excess of 20%

Operating result GUNKUL 54/080 14 November 2011 Subject Clarification of Change in Operation Results compared this year with the same period last year in excess of 20 percent To Managing Director and Director of Stock Exchange of Thailand Gunkul Engineering Public Company Limited ("Gunkul" or "the company") would like to clarify operation result of the company and the company's subsidiaries for three months period ended on September 30, 2011 with the net loss of 25.21 million baht decreasing from the same period last year which had the net profit equal to 41.52 million baht. The causes of the change in excess of 20 percent are as follows: 1. Unrealized foreign exchange losses due to import the oversea products in the amount of 64.15 million baht which the company has already applied Forward Contract to hedge the risk but not yet closed its position at the end of financial statement. 2. Removing the related profit transactions for three months period ended on September 30, 2011 in amount of 265 million baht between the company and G-Power Source Co., Ltd ("G-Power Source" or "company's subsidiaries"). The related transactions occurs due to the company has the obligation in the contract for constructing the 26 MW solar power plants of G-Power Source. However, the company has the policy and has appointed the financial advisor to seek for the potential partner to joint venture in the 26 MW solar power plants in proportion of not less than 50 percent. The company expects that finding the joint venture partner can be finished with the year 2011. With the success of the joint venture, the company which is the shareholder of G-Power Source is able to realize the related profit transactions said above to become the profit showed in the company's consolidated income statement in proportion of the shares which the company sells out to the new coming partners. 3. Besides the related profit transactions in the amount of 265 million baht as mentioned in cause no. 2 which are unable to be realized as the revenue in the consolidated financial statement, corporate income tax in amount of 79.50 million baht which occurs due to the related profit transactions as showed in the separated financial statement create the impact and is realized as the expense as showed in the consolidated financial statement. Please be informed accordingly Sincerely yours, (Sopacha Dhumrongpiyawut) Managing Director ______________________________________________________________________