·     Wins EPC contracts to build World 2nd Largest Chemical plant, Bio Energy Plant and Lube Oil Plant

  ·     Backlog jumps to 9 billion baht 50% to be realized this year

Toyo-Thai Corporation Plc., Thailand Largest EPC contractor grows unstoppably after winning 4 new EPC contracts with combined value over 2,000 million baht. The EPC leader clinches projects from PTT group, Japan-based Ube Group and Asahi Chemical Group and Bio Natural Energy, respectively.

Mr. Hironobu Iriya, President and Chief Executive Officer of Toyo-Thai Corporation Plc., reveals that the company has been awarded 4 new contracts worth 2,000 million baht:

        (1)  The EPC Contract to build a 1,6-Hexanediol Plant, the first fine chemical production facilities of Ube Industries in Thailand, with a capacity of 6,000 tons per year of 1,6-Hexanediol (1,6-HDL) including co-production of 1,5-Pentanediol (1,5-PDL) from UBE Fine Chemical (Asia) Company Limited. This plant with total investment of2 billion Baht (US$ 57.1 million) will be Asia Largest Plant and the World 2nd largest plant of its kind. Project owner is a subsidiary of UBE Industries of Japan, one of the three major players in the global market for 1,6-HDL. The chemical plant is to be built at Thai Caprolactam Caprolactam/Ammonium Sulphate Complex, Rayong, Thailand, by using UBE Industries latest advanced technology and scheduled to be completed in the 1st Quarter of 2011.

        (2)   An EPC Contract for Chlor-Alkali Project (Caustic Soda (NaOH) and Chlorine (Cl2)) from AGC Chemicals (Thailand) Co., Ltd. The chemical unit, with total investment of 400 million Baht, is to be built at Samutprakarn plant by replacing its old technology electrolysis cells with an Ecologically-Sound Ion-Exchange Membrane Process of Asahi Glass, one of the world best green technologies. The chemical unit is scheduled to be completed in 1st Quarter of 2010. This is the 10th plant that Toyo-Thai Corporation Plc. has built for ACG Chemical (Thailand) which is a subsidiary of Japan-based ACG Group, one of the key players dominating the global Caustic Soda market. The Caustic Soda produced from this plant will be in the production of paper pulp, soap, detergent, textiles and etc. The Chlorine, basic chemical, is used in various industries such as in the manufacturing of petrochemical products, PVC, pesticides, chemicals, pulp and paper.

          (3) A Contract to build a Pilot-Scale API-standard Lube Base Oil Production Unit for PTT Research and Technology Institute, a business unit of PTT Public Company Limited. This plant will utilize the manufacturing technology from Nippon Oil Group and Toyo-Thai Corporations Plc. The project investment totals baht 500 million with a completion period in the first quarter of 2010.

          (4)  An EPC contract to build a Power plant from Methane Gas for Bio Natural Energy Co., Ltd. The methane gas will be generated from the waste water from Ethanol plant owned by Pornvilai Group. This project is worth 300 million baht and expected to complete in the second quarter of 2010.

By winning 4 contracts to provide Engineering Design, Procurement of Machinery and Equipment and Construction of plants we are pleased to contribute this success to the long-lasting trust from our long-term customers. This also shows that the EPC Contractor business is still expanding despite the declining economy. With the combined value of baht 2,000 million of new contracts, our company backlog now exceeds baht 9,000 million. We will gradually realize the revenues from the second half of this year to next year. Mr. Iriya, TTCL President and CEO explains.

Regarding the company planned Initial Public Offering, the company will offer 130 million common shares for Initial Public Offering (IPO) or 27% of registered shares for investors and go public next month (June). We will become the first company to list shares in Thailand Stock Exchange this year. The fund from IPO will be used to increase the company capacity in undertaking world-scale projects worth 10,000-17,600 million baht (300-500 Million US dollars) per project. In addition, it will be used in further international expansion, especially, in Asian and Middle East countries.  From the investment road show, we have received strong interest from various institutional investors to invest in our company. The stock market sentiment is also positive with average daily trading value of baht 20,000 million baht. Therefore, we and our financial advisor has set our IPO price ranges of baht 3.75-4.25   Suvit Manomaiyanon, Director and General Manager, Sales and Contract Division explains.

We are confident that retail investors will appreciate the company unique business models and strong financial performances. The company grows an average 48% per annum during 2005-2008. (2008 revenues of 11,049 million baht and net profits of 314 million baht, a sharp 141% and 124% jump in revenues and net profits from 2007, respectively. In the first quarter this year, TTCL reports a 98% increase in revenues to baht 4,068.34 million from 2,053.35 million baht in the first quarter last year. Net profits in Q1 this year also jumped 53% to 140.08 million baht from 91.07 million baht in Q1 last year. Overall,   Khun Suvit says.