Subject: Clarification of Results for first half of 2006

To: The President Stock Exchange of Thailand

Univanich Palm Oil Public Company Limited hereby submits the Interim Financial Statements for the quarter ending 30th June 2006, and would like to clarify the operating result of the first half of 2006, which is 60.8% higher than for the same period last year.

1. Production
Fresh Fruit Bunch production (FFB) from our own estates was 30.1% higher than in the first half of last year. FFB purchased from outside growers was 21.0% higher than last year. This higher crop was due to recovery from the drought effect of last year, together with good rainfall during 2006 dry season.

Total FFB processed by Univanich factories was 22.9% higher than in the first half of 2005. However, Crude Palm Oil production of 63,965 tonnes was 27.1% higher, due to significantly better oil extraction rates (oer%). This higher oil extraction was also due to the recovery from drought and much better rainfall in the first half of 2006.

The production of Palm Kernel Oil (PKO) increased by 30.1% over the first half of last year, due to the better than expected contribution from the Company’s new PKO production plant commissioned in the 4th quarter of 2005.

2. Sales
Crude Palm Oil (CPO) sales volume was 8.9% higher than in the first half of last year, and the inventory of CPO in stock increased by 4,791 tonnes during the first half, due to the higher production and preparation for export shipments. Palm Kernel Oil sales volume was only 5.3% higher, since there have been fewer purchases of third party PKO previously required to make-up export shipments.

The average CPO selling price was 2.6% lower than in the first half of last year, while the average PKO selling price was lower by 10.2%.

3. Cost of sales
Cost of sales of Baht 910.2 million in the first half of 2006 was 5.7% lower than Baht 965.1 million in the same period of last year. Although the volume of fruit purchases was higher, the average purchase price per kg was 10.1% lower than in the first half of last year. Since our own production of PKO has increased, the volume of purchased PKO required to make-up export shipments was 34.5% lower than last year, also contributing to the lower cost of sales.

The overall gross margin increased from 17.4% to 24.5%.

4. Net Profit
The after-tax profit for the second quarter, ending 30th June 2006, was Baht 107.5 million (Baht 1.14 per share), an increase of 68.5% over Baht 63.8 million (Baht 0.68 per share) in the same quarter of last year.

For the first half of 2006, the after-tax profit was Baht 197.3 million (Baht 2.10 per share) an increase of 60.8% over Baht 122.7 million (Baht 1.31 per share) in the first half of last year.

Although the selling prices for CPO and PKO were both lower than last year, factors affecting the improved first half result were the higher fruit production following recovery from drought, plus the higher volumes and increased oer% in the purchased fruit activities.

Yours faithfully,
Univanich Palm Oil PCL.

  John Clendon
Managing Director