Glow Group is one of the largest private

electricity generators and providers of

industrial utilities in Thailand.

We operate IPP and Cogeneration facilities.

Our core business is to produce and supply

electricity to EGAT and also the electricity

and steam to industrial customers in

Map Ta Phut Industrial Estate and nearby.

002 Financial Highlights

004 General Information

006 Message from the Chairman

008 Message from the CEO

014 Vision and Mission

018 Corporate Governance

028 Corporate Social Responsibilities

030 Environment, Health and Safety Management

032 Board of Directors

034 Management Team

038 Business

050 Products and Production Facilities

056 Risk Factors

068 Shareholding and Management Structure

094 Related Party Transactions

096 Management s Discussion and Analysis

106 Audit Committee s Report

108 Financial Statements

Glow Group is one of the largest private

electricity generators and providers of

industrial utilities in Thailand.

We operate IPP and Cogeneration facilities.

Our core business is to produce and supply

electricity to EGAT and also the electricity

and steam to industrial customers in

Map Ta Phut Industrial Estate and nearby.

002 Financial Highlights

004 General Information

006 Message from the Chairman

008 Message from the CEO

014 Vision and Mission

018 Corporate Governance

028 Corporate Social Responsibilities

030 Environment, Health and Safety Management

032 Board of Directors

034 Management Team

038 Business

050 Products and Production Facilities

056 Risk Factors

068 Shareholding and Management Structure

094 Related Party Transactions

096 Management s Discussion and Analysis

106 Audit Committee s Report

108 Financial Statements

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Financial Highlights

32,593

2007 2006 2005

(Unit : Million Baht)

Total Revenue 33,011 33,992 28,596

Operating Revenue 32,266 32,593 28,495

EBITDA 8,605 9,052 8,371

EBIT 5,654 5,933 5,794

Normalized Net Profit 4,314 4,602 4,312

Total Assets 54,024 54,609 57,357

Total Liabilities 25,053 28,169 32,354

Shareholders' Equity 28,971 26,440 25,003

Dividend Per Share (Baht) 1.575 2.850 0.700

Note : *restated

(1) 0.975 Baht / share paid from 2006 results, 0.60 Baht / share paid from 2007 results (interim)

(2) 2.25 Baht / share paid from 2005 results, 0.60 Baht / share paid from 2006 results (interim)

(3) 0.70 Baht / share paid from 2004 results

(1) (2) (3)

*

*

2007 2006 2005

32,266

28,495

(Uni

t :

Mill

ion

Bah

t)

26,000

28,000

30,000

34,000

32,000

54,609

2007 2006 2005

54,024

(Uni

t :

Mill

ion

Bah

t)

54,000

55,000

56,000

58,000

57,000

4,3144,602

2007 2006 2005

4,312

(Uni

t :

Mill

ion

Bah

t)

2,000

3,000

4,000

6,000

5,000

57,357

Financial Position (Consolidated)

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32,593

2007 2006 2005

(Unit : Million Baht)

Total Revenue 33,011 33,992 28,596

Operating Revenue 32,266 32,593 28,495

EBITDA 8,605 9,052 8,371

EBIT 5,654 5,933 5,794

Normalized Net Profit 4,314 4,602 4,312

Total Assets 54,024 54,609 57,357

Total Liabilities 25,053 28,169 32,354

Shareholders' Equity 28,971 26,440 25,003

Dividend Per Share (Baht) 1.575 2.850 0.700

Note : *restated

(1) 0.975 Baht / share paid from 2006 results, 0.60 Baht / share paid from 2007 results (interim)

(2) 2.25 Baht / share paid from 2005 results, 0.60 Baht / share paid from 2006 results (interim)

(3) 0.70 Baht / share paid from 2004 results

(1) (2) (3)

*

*

2007 2006 2005

32,266

28,495

(Uni

t :

Mill

ion

Bah

t)

26,000

28,000

30,000

34,000

32,000

54,609

2007 2006 2005

54,024

(Uni

t :

Mill

ion

Bah

t)

54,000

55,000

56,000

58,000

57,000

4,3144,602

2007 2006 2005

4,312

(Uni

t :

Mill

ion

Bah

t)

2,000

3,000

4,000

6,000

5,000

57,357

Operating Revenue Normalized Net Profit Total Assets

Key P&L performance indicator for Glow is Normalized Net Profit (NNP) • GlowIPPhasanoutstandingloaninUSDwhichwillberepaidbyUSDlinkedoperatingcashflows. • UnderThaiGAAPtheoutstandingUSDloanisconvertedatyear-endinTHBatthecurrentexchangerate. AnydifferenceinTHBoutstandingloanamountduetousingadifferenceexchangeratecomparedtolastyearleads toanunrealizedFXgain(THBappreciation)orloss(THBdepreciation). • SincetheUSDloansinGlowIPPareservedbyUSDlinkedcashflowstheUnrealizedFXgains/lossesshould,inGlow’s view,beignoredfromaneconomicpointofview. • Glow’smanagementhasalwaysandconsistentlyfocusedonNNPignoringunrealizedFXgains/losses(substance overform).

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General Information Glow Energy Public Company Limited

Head Office address : 195EmpireTower38thFloor-ParkWing,SouthSathornRoad,Yannawa, Sathorn,Bangkok10120 Tel.(662)6701500-33Fax(662)6701548-9Plant Location : GlowEnergyPhase2-CentralUtilitiesCogenerationPlant 3,5,I-4Road,MapTaPhutIndustrialEstate,MuangDistrict,Rayong21150 Tel.(038)684078-80Fax(038)684-061and GlowEnergyPhase4-CentralUtilitiesCogenerationPlant 11,I-5Road,MapTaPhutIndustrialEstate,MuangDistrict,Rayong21150 Tel.(038)684780-8Fax(038)684789Homepage : www.glow.co.thType of Business : Supplyutilities(electricity,steam,clarifiedanddemineralizedwater)

Subsidiary Company that the Company holds shares of more than 50%

1. Glow Company Limited Head Office address : 195EmpireTower38thFloor-ParkWing,SouthSathornRoad,Yannawa, Sathorn,Bangkok10120 Tel.(662)6701500-33Fax(662)6701548-9 Type of Business : Providemanagementservices,consultantservicesandmanagement advisoryforrelatedcompanies

2. Glow IPP Company Limited Head Office address : 195EmpireTower38thFloor-ParkWing,SouthSathornRoad,Yannawa, Sathorn,Bangkok10120 Tel.(662)6701500-33Fax(662)6701548-9 Plant Location : 42,Moo8,CIE-8Road,ChonburiIndustrialEstate(Bowin),SrirachaDistrict, Chonburi20230 Tel.(038)345900-5Fax(038)345906 Type of Business : Generateandsupplyutility(electricity)

3. Glow SPP 1 Company Limited Head Office address : 195EmpireTower38thFloor-ParkWing,SouthSathornRoad,Yannawa, Sathorn,Bangkok10120 Tel.(662)6701500-33Fax(662)6701548-9 Plant Location : GlowSPP1Plant-CentralUtilitiesCogenerationPlant 10,SoiG-2,PakornsongkrawhratRoad,EasternIndustrialEstate, Huaypong,MuangDistrict,Rayong21150 Tel.(038)685589Fax(038)685104 Type of Business : Generateandsupplyutilityincludingelectricity,steamand demineralizedwaterforindustrialuse

4. Glow SPP 2 Company Limited Head Office address : 195EmpireTower38thFloor-ParkWing,SouthSathornRoad,Yannawa, Sathorn,Bangkok10120 Tel.(662)6701500-33Fax(662)6701548-9 Plant Location : GlowSPPPhase3-HybridCogenerationPlant 11,I-5Road,MapTaPhutIndustrialEstate,MuangDistrict,Rayong21150 Tel.(038)684780-8Fax(038)684789 Type of Business : Generateandsupplyutilitiesincludingelectricityandsteamforindustrialuse

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5. Glow SPP 3 Company Limited Head Office address : 195EmpireTower38thFloor-ParkWing,SouthSathornRoad,Yannawa, Sathorn,Bangkok10120 Tel.(662)6701500-33Fax(662)6701548-9 Plant Location : GlowSPPPhase3-HybridCogenerationPlant 11,I-5Road,MapTaPhutIndustrialEstate,MuangDistrict,Rayong21150 Tel.(038)684780-8Fax(038)684789 Type of Business : Generateandsupplyutilitiesincludingelectricity,steamanddemineralized waterforindustrialuse

6. Glow Demin Water Company Limited Head Office address : 195EmpireTower38thFloor-ParkWing,SouthSathornRoad,Yannawa, Sathorn,Bangkok10120 Tel.(662)6701500-33Fax(662)6701548-9 Plant Location : 9,SoiG-2,PakornsongkrawhratRoad,EasternIndustrialEstate,Huaypong, MuangDistrict,Rayong21150 Tel.(038)685589Fax(038)685104 Type of Business : Generateandsupplydemineralizedwaterforindustrialuse

7. Glow IPP 3 Company Limited (FormerlyGlowHemarajEnergyCompanyLimited)

Head Office address : 195EmpireTower38thFloor-ParkWing,SouthSathornRoad,Yannawa, Sathorn,Bangkok10120 Tel.(662)6701500-33Fax(662)6701548–9 Type of Business : Investmentanddevelopmentofpowergenerationprojects

8. Glow IPP 2 Holding Company Limited Head Office address : 195EmpireTower38thFloor-ParkWing,SouthSathornRoad,Yannawa, Sathorn,Bangkok10120 Tel.(662)6701500-33Fax(662)6701548–9 Type of Business : Investmentinpowergenerationcompanies

9. GHECO-One Company Limited Head Office address : 195EmpireTower38thFloor-ParkWing,SouthSathornRoad,Yannawa, Sathorn,Bangkok10120 Tel.(662)6701500-33Fax(662)6701548–9 Type of Business : Developmentofpowergenerationprojects

• Number of Employees : 450persons asof31December2007 : 110personsarelocatedatBangkokand340personsatPlant

• Registered Capital : 14,828,650,350baht asof31December2007

• Paid up Capital : 14,628,650,350baht asof31December2007

Other References

Bondholder’s Representative : SiamCommercialBankPublicCompanyLimited Tower2,3rdFloor,1060NewPetchaburiRoad,Makkasan,RajateveeBangkok10400 Tel.(662)2562323-27 Auditor : DeloitteToucheTohmatsuJaiyosAuditCompanyLimited 183RajanakarnBuilding25,26,28thFloor,SouthSathornRoad,Yannawa, Sathorn,Bangkok10120

Message from the Chairman Message from the Chairman Message from the Chairman

Theperformanceof theGlowGroup in2007wassatisfactory,withtargetedbusinessplansachieved, includingprofitablegrowth, operational excellence aswell asmaintenance of prudent standards on environmental, safety and occupationalhealthmanagement,includingsocialresponsibility.Ourperformancein2007recordedconsolidatedtotalrevenuesofBaht33,011million,a2.9percentdecreasefromBaht33,992million.Ournormalisednetprofit(‘NNP’-netprofitbeforeunrealisedforeignexchangegainsandlosses)wasBaht4,314million,a6.3percentdecreasefromBaht4,602million.ThiswasthefirsttimeinmanyyearsthattheCompany’sresultsexperiencedadecreasewhencomparedwiththoseofthepreviousyear.Thiswasmainlyduetothe8%depreciationoftheUSDollar(thecurrencyinwhichafractionofourcontractedtariffwithEGATisexpressed)andthereductioninPEAtariff.However, growthpotential inall areasof thebusiness looks verypromising.TheCompanyhas recentlybeenawardedanadditional74MWSPPcontractbyEGAT.ThePowerPurchaseAgreementforthenewcontractisexpectedtobesignedbythe second quarter of 2008, with commercial operation schedule for the end of 2011. In addition, the continueddevelopmentoftheThaipetrochemicalsector,whichisexpandingaspartofthestartofthethirdpetrochemicalphaseisdrivingupthedemandforbothsteamandelectricityinMapTaPhutIndustrialEstateandnearbyindustrialestatesandtomeetthisdemandtheCompanyanticipatesthatitwillneedtoadd350MWofnewcapacitytoitscogenerationpowerplantfacilities.InourIPPBusiness,GHECO-OneCo.Ltd,anaffiliateofGlowGroup,wasselectedasthepreferredbidderfora660MWcoal-fired project in December 2007. Total construction cost for this project is estimated at USD 1,150 million.Constructionisexpectedtostartin2008,andcommercialoperationisduetostartbytheendof2011.Inparallelwithprospectsforgrowth,theCompanyrecognisestheimportanceofsocialandenvironmentalmatters.Itisourpolicy, both in our day-to-day operations, andwhenundertaking project developments, always to take into considerationpotentialenvironmentalimpactsandtoactivelyandsincerelysupportthesustainabledevelopmentofthequalityoflifeofthecommunitiesintheareaaroundthepowerplants.

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For theexpansionofour IPPBusiness, thecompanyhaschosenoneof theworld’scleanestcoal-firedpowerplants.Theplantwillmeet statutory limits required for coal-firedplants of even themost stringent international regulations suchasthoseoftheEuropeanUnion.Simultaneouslywiththeseprojects,Glowwillalsoinvestinemissionreductiontechnologiestofurtherdecrease,asfarasiseconomicallyfeasible,theemissionlevelsfromourexistingplantssothatafterthenewIPPandcogenerationplantsbecomeoperational,thetotalNOXandSO2emissionlevelsandtheemissionsofparticulatematter(bothactualandmaximum)fromourpowerplantsinMapTaPhutwillbelowerthanthecurrentlevels.ThenetresultshouldcontributetoanimprovementoftheoverallairqualityinMapTaPhutTodevelopmentourplansforoperationalexcellence,theCompanyhasconductedanopinionsurveyofouremployeestoevaluateandimproveourorganisation’sperformanceandouremployees’ownefficiency.TheCompanybelievesthatbottom-upparticipationbyemployeesbysharingtheirviewswillyieldgreatbenefitstothecontinuingoperationalexcellencepolicy.OnbehalfoftheCompany’sBoardoftheCommittee,Iwouldliketoexpressmygratitudetoallexecutivesandemployeesfortheirdedicationandhardworkincarryingouttheirduties.Iwouldalsoliketothanktheshareholders,customers,investors,financialinstitutes,publicandprivatesectorsincludingthelocalcommunitiesfortheirtrustandcontinuedsupportforourbusiness,whichhasfurthercontributedtothemutualbenefitofandfairnesstoallstakeholders. Mr. Guy Richelle Chairman of the Board

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Message from the CEO

The 2007 financial results show our second best year ever in terms of NNP (Normalised Net Profit), even though itdecreasedby6%.ThiswasmainlyduetothedepreciationoftheUSDollarby8.4%.TheimpactonourresultsoftheweakeningoftheUSDollaragainsttheThaiBaht,isestimatedataround300-400MTHB.ThePEA(1)pricewasreducedfromthehighlevelsof2006sincethethirdgaspipelinecameonlineinthethirdquarterof2006.The8.4%increase in industrialelectricitysales,and3.9%additionalsteamsalesdidnotfullycontributetoourprofitsincealotofadditionalenergyhadtobesuppliedfromexpensivesources(includingboilers).For2008,thekeyfocuswillbeongrowthandchangestoourvision,missionandcorporateculture.

1. Financial Results

2,986 2,492 2,885 2,561

5,401 5,879 6,167 6,044

2004 2005 2006 2007

8,387 8,3719,052

8,605

CogenEBITDA IPPEBITA

EBITDA Normalized net income2

926 975 1,212 962

3,042 3,337 3,390 3,352

2004 2005 2006 2007

3,9684,312

4,6024,314

Cogen IPP

Cash from operations

2004 2005 2006 2007

6,7026,255

8,149

6,290

(1)TheProvincialElectricityAuthority(PEA)ofThailand(2)NormalizednetincomeexcludesunrealizedFXgains/losses

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2. Glow’s Strategy

Glow’sobjectivesremainbalancedbetweenachievinglong-termandshort-termfinancialtargets,bothinaccountingandcash.Indoingsowealsoaimtocomplywiththeboundaryfundamentalconditionsforproperandsustainablebusiness,whichincludessocialresponsibility.

Actions

• Commercial • Financial • Operational • Human Resources • Social

CashShareholdersValueCreation-LongTerm,riskadjustedFreeCashFllow-ShortTerm,dividendpolicy

EarningsEBITDAandNNP(ThaiGAAP)ReduceearningVolatility

SocialResponsibilityStrengtheneducationalsupport,governmentrelations,communityrelations,environmentalcare

ManagerialFundamentalsQualitymanagement(Reliabilityofdecision-makingandreportingbasedon standardizeddocumentedprocesses,automatedtools/systemsandhighlyquallified&motivatedworkforcewhoadherestovalues&cultureofGlow

RiskManagement(Legal and Corporate) Compliance Commodity riskmanagement(FX,interest,gas,coal)

FundamentalConditions

FinalGoals

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Key Target 2008 : to Ensure Profitable Growth

Inthesecondquarterof2008,wehopetostartontheconstructionof the660MWcoal firedIPPexpansion(GHECOONE)inwhichGlowhasa65%stake.WewereawardedtheprojectonDecember7th2007.Themostimportantmilestonewill be the signature of the Power Purchase Agreement with EGAT, for which the timely receipt of the EIA permit isrequired.Wealsohopetostarttheconstructionofthenewgasfiredcogenerationexpansioninthethridquarterofthisyear.Wehavealreadybeenawardeda74MWSPPcontractwithEGATandanother150MWeofindustrialsales.Inadditionwearein the final stagenegotiations forsubstantialadditionalvolumeof industrail sales.Theaggregatevolumeallows foranexpansionasacombinedcyclegasturbine(CCGT)plantof380MWe.3. Glow Vision Changes to Include Expansion Outside Thailand

The scope of our business has widened. We have now more focus on capturing profitable growth of the IPP andCogeneration businesses in Thailand, and our scope now also includes IPP development in Laos and Cambodia andcogenerationdevelopmentinSouthEastAsiancountries.

• Focusonreliabilityandimprovementofheatrates • Reduceproductioncostsandincreaseproductivity • Improvefuelmanagementandefficiency • Reducecostofcapital • Improvereportingandmanagementtools&processes • Enhancecustomerrelationshipsandsatisfaction • GrowCogenbusinessesinThailandbysellingsteamandelectricity tohigh-loadindustrialcustomerswhovaluereliability • GrowIPPbusinessinThailand • GrowbusinessinLaosandCombodia • Followkeycustomerswhentheypursuepetrochemicalprojectsin SEA'ncountries,totheextentthatallfulloperationalintegrationin Glow'sactivitiesmakessenseandallowsforsynergy.

Becauseofourexpertiseandoperationaltrackrecordoftimelyprojectcompletionandyearsofreliablesupplywithmajornational and international petrochemical groups we should be well placed to target expansion in the cogenerationbusinessbothinThailandandabroad.DevelopmentandimplementationofopportunitiesinLaosandCambodiawillbemorechallengingsincewewilltargetprojectsenteredintowithEGATandsuchprojectsareoftennotsubjecttoapubliccompetitivebiddingprocess.Stillwewillstarttoprospectactivelyforthesenewopportunities.

Operational Excellence

Profitable Growth

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GLOW’S MISSION FOCUSES ON VALUE CREATION FOR SHAREHOLDER’S AND CUSTOMERS AND ONENVIRONMENTALANDSOCIALRESPONSIBILITY

Controlling the environmental impact of our activities is part of our Mission

Glowoperateshighlyefficientplantswithmodernemissioncontrolandmonitoringsystems.Thecogenerationtechnologyof ourplants inMapTaPhutensureshighefficiency in theuseof fuel inenergyproduction, thuscontributing to lowemissionsperMWheqofenergyproduced.Thankstoourmodernemissioncontrolsystemsouremissionsarewellbelowtherequiredstandardsandcomparablewiththebestinstallationsworldwide.ForourfutureexpansionsinMapToPhutwe will continue to apply state-of-the-art emission control designs and we will also invest in emission reductiontechnologiestofurtherdecrease,asfaraseconomicallyfeasible,theemissionlevelsfromour(existing)plantssothatinaggregatewecanachieveareductioninemissionsfromourplants.

GLOW’s Mission

• Createvalueforourshareholdersandcustomersinasustainablemannerthrough: a : Reliableproductsandservices b : Operationalexcellence c : Profitablegrowth d : Committedandknowledgeableemployees e : Anetworkofexpertise• Runthebusinessinasustainablerelationshipwiththeenvironmentandwithsociety: a : Environmentallyresponsibleprojects b : Developthequalityoflifeofcommunitiesinareaswherewedobusiness c : Aprimefocusonenvironmenthealthandsafetyforouremployees,contractorsandthe surroundingcommunities

d : ProvideexpertiseandsupportforthedevelopmentoftheThaienergysector

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Working together with communities and Thai society is part of our Mission

AtGlowGroup,social responsibilityhasbeenpartofouroperationssinceour firstplantswerebuilt.Over thepast15years, since the startupof thecompany,wehaveorganized social activities and supportedcommunityprojectswhichenablethepeopleinthevicinityofourplantstoproduceoracquirebasicnecessitiesandimprovetheirqualityoflife.Welookforwardtosupportnewprogramsandactivitiesin2008tocomplementourcommunityandsocialdevelopmentwork.When it becomes commercially operation, our new coal-fired IPPwill contribute about 100MTHBper year to a localcommunitydevelopmentfund.

4. GLOW’S CORPORATE CULTURE

Expressinganddefiningacultureisnotamatterofpreparingalistofgoodcorporatevalues.Therearehundredsofsuchvalues.Thepointistoidentifyareasonwhichwewantandneedtofocustomakeourbusinessmoresuccessful.Thevaluesweincludeshoulddefinehowweasacompanyandasindividualsactandinteractwiththeoutsideworld.TherewillbeastrongfocusonSocialPartnershipandSustainableBusinessRelations.

• Communication• Adaptability• Commitment• Unity:Loyalty,Courage:hasbeenachievedandwillbereplacedwithnewvaluesthatneedtobestressed.• SocialPartnership:Developasustainablerelationshipwiththeenvironment,communityandsociety• Sustainablebusinessrelations:developandmaintainalong-termrelationshipandcommitmenttoall businesspartners(suppliers,customers,equityinvestors)throughloyal,honestandsincereconduct.

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Social Partnership.

Wehavetocareaboutpeople,communitiesandthenaturalenvironmentwherewedobusiness.Thismeanslookingoutfor the safety of our employees, contractors, neighbours, communities and customers. We must act with a sense ofresponsibility. Weshouldcomplywithall theapplicableregulationsandcareaboutthe impactofouractivitiesonthepeople.Communityrelationworkandingeneralsocialworkrelatedtoouractivitiesispartofourmissionandculture.SocialPartnershipisalsoadutyweowenotonlytoourshareholderswhoentrustedtheirsavingswithusbutalsotoourpersonnelwhoseemploymentweseektoprotect.Socialpartnershipalsomeansweseektheprofitabilityinfullrespectof

allboundaryconditionsofourbusiness,includingrespectfortheenvironmentandthepeople.

Sustainable Business Relations.

Glowhastofosteraconstructiveandhonestdialoguewithitsbusinesspartners:employees,shareholders,equitypartners,customers,theauthoritiesandthepublic.Wecanonlydoeffectivebusinessonalong-termbasisinaclimateoftrustandtransparency. This means we have to be honest about our expectations and our constraints. The dialogue with ourbusinesspartnersisalwaysongoing.Contractswithourcustomersaretobeconstruedandappliedinareasonableandhonest manner. This honest and sincere dialogue with our business partners is a matter of professionalism, care andintegrity.

PeterTermote

CEOofGlowGroup

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• Focus on plant reliability and improvement of heat rates

• Reduce production costs and increase productivity

• Improve fuel management and efficiency

• Reduce cost of capital

• Improve reporting and management tools & processes

• Improve customer intimacy and satisfaction

• Grow Cogen businesses in Thailand by selling steam and electricity to high-load industrial customers who value reliability

• Grow IPP business in Thailand

• Grow business in Lao and Cambodia

• Follow key customers when they pursue petrochemical projects in SEA’n countries, to the extent that a full operational integration in Glow’s activities makes sense and allows for synergies.

GLOW’S VISION CHANGES TO INCLUDE EXPANSIONS OUTSIDE THAILAND GLOW VISION STATEMENT

Profitable Growth

Operational Excellence

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GLOW’S VISION CHANGES TO INCLUDE EXPANSIONS OUTSIDE THAILAND GLOW VISION STATEMENT

GLOW’S MISSION

FOCUSES ON VALUE CREATION FOR SHAREHOLDER’S AND CUSTOMERS AND ON ENVIRONMENTAL AND SOCIAL RESPONSIBILITY

Create value for our shareholders and customers in a sustainable manner through :

• Reliable products and services

• Operational excellence

• Profitable growth

• Committed and knowledgeable employees

• A network of expertise

• Environmentally responsible projects

• Develop the quality of life of communities in areas where we do business

• A prime focus on environment health and safety for our employees, contractors and the surrounding communities

• Provide expertise and support to the development of the Thai energy sector if valued by the authorities

Perform the business in a sustainable relationship with the environment and with the society :

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1 2 3 4

Because we want to ensure sustainable development, controlling the environmental impact of our activities and working togetherwith the communities and the Thai society are an integral part of our Mission.

Social Partnership and Sustainable business relation are part of our culture. We have to care about the people, the communities and thenatural environment where we conduct our business and we can only do effective business on a long-term basis in a climate of trust and transparency.

Only by respecting these boundaries conditions can we ensure sustainable development of our group together with the community and our partners.

SOCIAL PARTNERSHIP AND SUSTAINABLE BUSINESS RELA

TIONS

ARE O

UR KEY VALUES

1. Mr. Nikom Janhorn President of Sustainable Economics Agriculture Group Klong Nam Hoo, Rayong Province

2, 3, 4 Member of Takuan - Aowpradoo Fisherman Group, Rayong

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1 2 3 4

Because we want to ensure sustainable development, controlling the environmental impact of our activities and working togetherwith the communities and the Thai society are an integral part of our Mission.

Social Partnership and Sustainable business relation are part of our culture. We have to care about the people, the communities and thenatural environment where we conduct our business and we can only do effective business on a long-term basis in a climate of trust and transparency.

Only by respecting these boundaries conditions can we ensure sustainable development of our group together with the community and our partners.

SOCIAL PARTNERSHIP AND SUSTAINABLE BUSINESS RELA

TIONS

ARE O

UR KEY VALUES

1. Mr. Nikom Janhorn President of Sustainable Economics Agriculture Group Klong Nam Hoo, Rayong Province

2, 3, 4 Member of Takuan - Aowpradoo Fisherman Group, Rayong

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Corporate Governance

Good Corporate Governance is a key value for Glow Group. In 2007, the Board of Directors approved a revised Corporate Governance policy to reiterate the importance of Good Corporate Governance within the Group. The Board of Directors is committed to the principles of good corporate governance in compliance with the recommended best practices for listed company and relevant rules, regulations and guidelines of the Stock Exchange of Thailand (“SET”), the Office of the Securities and Exchange Commission (“SEC”), the OECD Principles of Corporate Governance and Suez best practices.

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Corporate Governance

The Company follows the prudent supervision controlprinciples according to guidelines prescribed by the StockExchangeofThailandasfollows:

Rights of Shareholders

• TheBoardofDirectorsoftheCompanyhasestablishedthecorporategovernancepoliciesconcerningtheshareholders' basicrightsasfollows: 1. Rightstobuy,sell,ortransfershares 2. Rightstoshareintheprofitofthecompany 3. Rightstohaveaccesstothecompany’sinformationinatimelyfashionandonaregularbasis 4. Rightstoparticipateandvoteintheshareholders’meetingincludingtherightsto - ElectorremovemembersoftheBoard - Proposeandapprovetheappointmentofexternalauditor - ParticipateinthedecisionmakingofanytransactionsthataffecttheCompanyand/ortheshareholdersina materialmanner• TheCompanyhasfacilitatedtheshareholdersduringeachshareholder’smeetingbypreparingtheappropriated meetingvenueswhichcorrespondtothenumberofshareholdersparticipatinginthemeeting.TheCompanyalso sendseachshareholderaletterofinvitationtothemeetingtogetherwithanagendaandclear,completeandadequate informationtobeusedwitheachagendum7daysinadvanceofthemeetingdate.Eachagendumalsohascommendations oftheBoardofDirectorsoftheCompany.Moreover,theCompanypreparestheaccurateandcompleteminutesofeach meetingtobemadeavailableforinspectionbytheshareholdersonthewebsiteoftheCompany.• TheCompanyhasalsodevelopedaprocessallowingtheshareholderstoproposeagendaorquestionstothecompanyor contactpersonfortheshareholders’meetingthroughCompanywebsiteSinceJanuary14,2008,theCompanyhas alreadyinformedandpublishedthisprocesstotheshareholdersviatheELCIDsystemoftheSET.• In2007,theCompanyhasarranged1annualshareholders’meeting.Duringtheshareholders’meeting,theChairman ofthemeetingallowseveryshareholdertoequallyexaminebusinessoperationsoftheCompany.Shareholderswere welcometovoiceanyqueries,expresstheiropinionsandmakeothersuggestions.

Equitable Treatment of Shareholders

• UndertheCompany’sCorporateGovernancePolicy,itisthedutyoftheBoardofDirectorstofacilitatetheminority shareholderstopropose,inadvanceofthemeetingdate,anyissuesforconsiderationintheshareholdersmeeting. TheBoardofDirectorshasestablishedaproceduretoallowtheshareholderstomakeproposalsincludingaprocedureto nominatecandidates.ThedetailedproceduresandcriteriacanbefoundontheCompanywebsite.• TheBoardofDirectorshasapprovedtheInsiderTradingPolicytopreventtheabusiveuseofinsideinformationand hascommunicatedthispolicytoeveryoneinthecompanyviatheCompanywebsite.Moreover,whendirectorsand certainexecutivesoftheCompany,whoareconsideredasbeinginthepositionofanInformedFunction,buy/sellsharesof theCompany,theyarerequiredtosubmitareportonownership(Form59-2)totheSECwithin3days.

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Role of Stakeholders

• TheCompanyacknowledgesandisfullyawareoftherightsofthestakeholders.ItistheCompany’spolicytoencouragethe cooperationbetweentheCompanyandtheStakeholderinenhancingthemutualinterestsaswellasensuringthatthe stakeholdershavebeenprotectedandtreatedwell.TheCompanyplacesimportanceontherightsofallstakeholders groupssuchasemployees,customers,businesspartners,businesscompetitorsandtheoverallsocieties.Theoperating guidelinesforthedirectors,executiveofficersandemployeesareclearlydefinedasthebusinesspracticeintheCode ofConductsectionoftheCorporateGovernancePolicy.• TheBoardofDirectorshasalsoestablishedTheAuditCommitteetoexaminethekeyoperationsofthecompany.The AuditCommittee’sdutiesshallinvolveauditing/governingtheCompany’soperations,financialreportsandinternal controlsystems,theselectionofauditors,andtheconsiderationofconflictsofinterest,includingriskmanagement. TheAuditCommitteescopeandresponsibilitiesaredescribedintheAuditCommitteeCharter.• TheBoardofDirectorshasapprovedtheEnvironmentalPolicytoensurecontinuousandsustainabledevelopmentof itscorebusiness,withoutcompromisingtheabilityofthecurrentandthefuturegenerationtoenjoytheenvironment. Inaddition,TheBoardofDirectorshasalsoapprovedtheHealthandSafetyPolicysothattheCompanypaysfullattention tothehealthandsafetyconcernsthataffectouremployees,clientsandthecommunity.Disclosure and Transparency

• InformationrelatedtotheAnnualGeneralShareholderMeeting,EthicsCharter,Health,Safety&EnvironmentalCharter, CodeOfConduct,InsiderTrading,EthicOfficercontactdetails,EthicalandSocialpoliciesandotherrelevantinformation approvedbytheBoardofDirectors,havebeenprovidedthroughvariouschannelssuchasthecompany’sannualreports andwebsite.• Inadditiontodisclosinginformation,asspecifiedinrelevantregulations,throughthechanneloftheSET,Form56-1, andannualreports,theBoardofDirectorshasdesignatedtheFinance&InvestorRelationsDepartmenttodisseminate informationtoshareholdersandotherstakeholdersandtoequitablyandappropriatelyassistinvestorsandsecurities analyststounderstandthecompanyanditsbusiness.Informationpostedinthecompany’swebsiteisbothinThai andEnglish.Inaddition,theCorporateCommunicationsDepartmenthasbeenassignedtowidelypublicizetimely corporateinformationandperformancedataviavariousmedia.• TheBoardofDirectorsisresponsiblefortheconsolidatedfinancialpositionoftheCompanyanditssubsidiariesas wellasthefinancialinformationasappearsintheCompany’sannualreport.Suchfinancialstatementsarepreparedin accordancewiththegenerallyacceptedaccountingprinciplesofThailandbyusingtheappropriateaccountingpolicies,by adheringtothemconstantlyandbycarefullyusingthebestjudgment.Theimportantinformationisadequately disclosedinthenotetothefinancialstatements.TheBoardofDirectorshasestablishedaneffectiveinternalcontrol systemtoensurethatthereportandtheaccountinginformationareaccurate,completeandadequateenoughto maintaintheassetsandtopreventtheloss,dishonestconductorotherill-operationswhichmightresultindamageto theCompany.• TheCompanyhasdisclosedtherolesandresponsibilitiesoftheBoardofDirectorstogetherwiththeseofthecommittees intheDirectorsCharterofCorporateGovernancePolicy.In2007,theBoardofDirectorshasarranged4ordinarymeetings and4extraordinarymeetings.Theparticipationofeachdirectorcanbesummarizedasfollows:

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Name Position Holding Participation / Total Meeting Ordinary Extra- Total Meeting Meeting

1. Mr.GuyRichelle* 28Feb07 3/4 4/4 7/8

2. Mr.PeterValereGermainTermote 28Apr05 3/4 4/4 7/8

3. Mr.KovitPoshyananda 25Apr07 4/4 3/4 7/8

4. Mr.VitthayaVejjajiva 28Apr05 4/4 4/4 8/8

5. Ms.SupapunRuttanaporn 25Apr07 4/4 4/4 8/8

6. Mr.DirkAchielMarcBeeuwsaert 25Apr07 1/1 1/1 2/8

7. Mr.GuidoGeeraerts 25Apr07 2/4 1/4 3/8

8. Mr.JohanDeSaeger* 28Feb07 2/4 2/4 4/8

9. Mr.RajitNanda* 15Sep06 3/4 3/4 6/8

10. Mr.PhilipDeCnudde 28Apr06 2/4 1/4 3/8

11. Mr.AnutChatikavanij 28Apr05 4/4 3/4 7/8

12. Mr.BrendanG.H.Wauters 28Apr06 2/4 2/4 4/8

Note: *Mr.GuyRichellereplacesMr.MarcRaymondJoszasadirectorfrom28February2007.

*Mr.JohanDeSaegerreplacesMr.ShankarKrishnamoorthyasadirectorfrom28February2007.

*Mr.RajitNandareplacesMr.MattiKristianCastronasadirectorfrom15September2006.

• TheprocessofsettingandevaluatingtheobjectivesrelatedtothedeterminationoftheremunerationoftheExecutive VicePresidentsandtheCEO(notindividualremuneration)willbedisclosedtotheBoardofDirectorsintheannual reportandthewebsite.Thedisclosedremunerationfiguresofdirectorsandmanagementintheannualreportwillremain aggregatedandwillnotbeindividualized.TheindividualremunerationoftheExecutiveVicePresidentsandCEOwill bedisclosedtotheremunerationcommittee.

Responsibilities of the Board

1) Board Structure

• TheBoardofDirectorshasanadequateandappropriatenumberofdirectorsaccordingtothesizeandtheoperation oftheCompanybyhavingatotalof12directors,consistingof1directorwhoisinamanagementposition,and11 non-managementdirectors.Ofalldirectors,3areindependent.

• ThetermofserviceofdirectorshasbeenclearlystatedinGlow’sCorporateGovernancepolicyasfollows: - Boardmemberswillbeelectedforaperiodofthree(3)years,afterwhichthemembersneedtoresign. - Resignedmembermaybenominatedagain. - Duringanyrotationperiod,nomorethanonethirdofthedirectorsshouldberotatedtoensurecontinuity. - Duringtheimplementationphase,somemembersmayserveanadditionalyeartoensurethattherotationpolicy couldbeimplementedeffectively. • AsspecifiedbyGlow’sCorporateGovernancePolicy,directorsmustbeindependentaccordingtotheSEC’snotification regardingthequalificationsandscopeofworkoftheAuditCommittee,includingotherqualificationsasrequired

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bytheCompany.Thisistoenablethedirectorstoworkforthebestinterestofallshareholdersonanequitable basisandtopreventconflictsofinterestbetweentheCompanyandmanagementofmajorshareholder(s)orother companieshavingmanagement/majorshareholdersincommon.Inaddition,directorsmustalsobeableto expresstheiropinionindependently. • AccordingtoTheDirectCharter(Article3and6)oftheGlowCorporateGovernancePolicy,eachDirectorshall dedicatethenecessarytimeandattentiontofulfillhisduties.ShouldaDirectorproposetoacceptanotherDirectorship inadditiontothat(orthose)heldatthetimeofhisappointment(withtheexceptionofsuchpositionwithan unlistedgroupcompany),thisfacthastobebroughttotheattentionoftheChairmanoftheBoard’sCommittee inchargeofappointmentswithwhomtheyaretoassesswhethersuchnewresponsibilitieswouldleavethemthe timenecessarytobedevotedtotheirDirectorresponsibilities.Inaddition,eachDirectorshallinformtheBoardof Directorscompletelyandbeforehandofanyrealorpotentialconflictofinterest,directorindirect,whichtheymay have.AnyDirectorwithsuchaconflictmustnotparticipateinanydiscussionofanysuchtopicandonvotingonit. • TherolesandresponsibilitiesoftheChairmanaredifferentfromthoseoftheCEO.AsdescribedbytheGlow’s CorporateGovernancePolicy,theboardshouldseparatetherolesandresponsibilitiesofbothpositionssothatthe Board,undertheguidanceoftheChairman,hasauthorityandisabletocontrolthemanagement’soperations effectivelyandefficiently. • TheCompany’sBoardofDirectorshasassignedtheVicePresident-Finance&InvestorRelationsasthecompany secretarytoservetheBoardofDirectorsinareasoftakingcareoftheboard’sactivitiesandmonitoringcomplianceto theBoard’sresolutions.

2) Committees

TheCompany’sBoardofDirectorshasappointedthesub-committeetohelpwithsupervisingtheCompany’sbusiness operationsasfollows:

Audit Committee TheAuditCommitteeconsistsof3directors.AmemberoftheAuditCommitteemayserveforamaximumof6consecutive years,countingforpracticalpurposesasof1April2005listing.Toensurecontinuity,amaximumofonethirdmay bereplacedinanygiven24monthsperiod.AlloftheAuditCommitteemembersareindependentdirectors.The AuditCommitteeshallholdatleast4meetingsperyear.In2007,therewere7auditmeetings.

TheAuditCommitteeiscomprisedof3committeemembersasfollows:

1. Mr.KovitPoshyananda ChairmanoftheAuditCommittee

2. Mr.VitthayaVejjajiva AuditCommittee

3. Ms.SupapunRattanaporn AuditCommittee Scope of Authority and Responsibilities of the Audit Committee • Toreviewthesufficiency,credibilityandobjectivityofthefinancialreportingbycoordinatingwiththeexternalauditors andmanagementresponsibleforpreparingthequarterlyandyearlyfinancialreportsandtosuggestissuesor matterstobeincludedforrevieworauditbytheexternalauditorsduringitsauditofthecompany.

Name Position

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• Toreviewtheadequacyandeffectivenessofinternalcontrolsystemsandinternalauditfunctionsbycoordinating withtheexternalauditorsandinternalauditors. • ToreviewcompliancewiththeSecuritiesandExchangeActs,RegulationsoftheSET,andanyotherrelevantlaws ofThailand. • Toconsiderandadvisetheappointmentoftheexternalauditorsincludingtheauditfeebyconsideringthecredibility, theadequacyofitsresources,thevolumeofengagements,andtheexperienceofitssupervisoryandprofessionalstaff. • TheAuditCommitteeshouldalsokeepthenatureofthenon-auditservicesunderreview.TheAuditCommittee shouldsetandapplyaformalpolicyspecifyingthetypesofnon-auditservices; - Notpermissible; - PermissibleafterthereviewoftheAuditCommittee;and - PermissiblewithoutthereferraltotheAuditCommittee. • Toconsidertheappropriatedisclosureofallconnectedtransactionandanyconflict-of-interestsmattersinconformity ofrelevantrulesandregulations. • TotakecareofothermattersassignedtoitbytheBoardofDirectorsandagreedtobytheAuditCommittee. • ToreporttheactivitiesoftheAuditCommitteeinthecompany'sannualreport,whichshallbesignedbytheChairman oftheAuditCommittee. • ToactastheCorporateGovernanceCommitteetoensurethattheCompanyhasinplaceandeffectivelycomplies withacorporategovernanceframeworktoprotectthereputationofthecompanyandtheinterestofallstakeholders. Nomination and Remuneration Committee TheNominationandRemunerationCommittee,comprisesof3membersoftheBoard,ofwhich1isanindependent director.TheNominationandRemunerationcommittee’sroleistoselectappropriatecandidatestobeproposedfor thepositionsofdirectorandCEO.Thenominationprocessshallbesetupinaccordancewithcertaincriteriaandshall betransparent.TheNominationandRemunerationCommitteeshallalsoconsidertheguidelinesfortheremuneration oftheBoard,theCEOandtheexecutivesdirectlyreportingtotheCEO,toensurethatthebasisisfairandreasonable forsubmissiontotheBoardandtheshareholders'meetingforapproval.TheNominationandRemunerationCommittee’sscope andresponsibilitiesaredescribedintheNominationandRemunerationCommitteeCharter. TheNominationandRemunerationCommitteeiscomprisedof3committeemembersasfollows:

1.Mr.DirkAchielMarcBeeuwsaert ChairmanoftheNominationandRemunerationCommittee

2.Mr.GuyRichelle Member

3.Mr.VitthayaVejjajiva Member Overall Purpose / Objectives • TheroleoftheNominationandRemunerationCommitteeistoproposetotheBoardofDirectors("theBoard"),in thefirstinstance,anynewappointments,whetherofexecutiveorofnon-executivedirectors,andrecommend asuccessortotheChiefExecutiveOfficerwhenconsiderednecessary.TheCommitteewillreviewBoardmembership onaregularbasis,consideringinteraliathelengthofserviceofmembers,theircontributiontotheworkofthe BoardandthebreadthofexpertiseoftheBoardasawhole.

Name Position

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• TheCommitteeisalsoresponsibleforrecommendingtotheBoardtheremunerationarrangementfornon-executive andindependentmembersoftheBoard. • Inperformingitsduties,theCommitteewillmaintaineffectiveworkingrelationshipswiththeBoard,andeach CommitteememberwillobtainanunderstandingofthedetailedresponsibilitiesofCommitteemembershipas specifiedinthisCharter. • TheCommitteeshalldefineonbehalfoftheBoardofDirectors("theBoard")andtheshareholders,Glow’sremuneration policyfortheChiefExecutiveOfficerandExecutiveVicePresidents(“seniorexecutives”),andtodeterminetheir specificremuneration,benefitsandtermsofemploymentincludingpensionrightsandanycompensationpayments andtomonitorimplementationofGlow’shumanresourcesvisionandstrategy. Authority • TheBoardauthorisestheNominationandRemunerationCommittee,withinthescopeofitsresponsibilities,to proposecandidateswithproperqualificationstotheBoard,andmakealldecisionsrelevanttothisCharter(other thanwhereBoardapprovalisspecificallyrequired). • TheBoardauthorisestheNominationandRemunerationCommittee,withinthescopeofitsresponsibilities,tomake alldecisionsrelevanttoitsCharter(otherthanwhereBoardapprovalisspecificallyrequired)andhaveaccessto professionaladviceinsideandoutsideGlowatGlow'sexpense,subjecttothepriorapprovaloftheBoard. Roles and Responsibilities 1) Nomination • ReviewandrecommendthecriteriaforBoardmembershipandrequiredqualifications. • Reviewthecomposition,sizeandexperienceoftheBoardonaregularbasis,includingcurrentandfuture requirements,havingregardinparttoregulatoryconstraints. • MakerecommendationstotheBoardofcandidateswithproperqualificationsfortheBoardtosubmitfor appointmenttotheannualgeneralshareholders'meeting. • SeekproposalsofindividualsforappointmentasindependentmembersoftheBoard. • EnsurethatnewmemberstotheBoardparticipateintheorientationprogramfornewdirectors. • ReviewandrecommendtotheBoardtheremunerationarrangementsfornon-executiveandindependentmembers oftheBoard,includingtheirresponsibilitiesforCommitteeactivities,forsubsequentapprovalbyshareholders. • MakerecommendationstotheBoardforthesuccessortotheChiefExecutiveOfficerwhenconsiderednecessary. • DevelopasuccessionplanfortheChiefExecutiveOfficerthatconsidersbothpotentialinternalandexternalcandidates. 2) Remuneration • ReviewGlow’sannualremunerationstrategyandrecommendstrategytotheBoardforendorsement. • EstablishguidelinesforremunerationontheinitialappointmentoftheCEOandtheExecutiveVicePresidentsofGlow. • Ensurethatapropersystemoflongandshort-termcompensationisinplacetoprovideperformance-oriented incentivestomanagement.

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• MonitorimplementationofGlow’shumanresourcesvisionandstrategy,includingmanagementdevelopmentprograms forseniorexecutives. • EvaluatetheChiefExecutiveOfficer’sperformancebasedonapersonaldevelopmentplan,whichincorporates short-termandlong-termobjectivestogetherwithperformancetargetslinkedtoGlow’sstrategy.Determinethe salaryandbenefitsannuallyattheendofeachfinancialyearbyreferencealsotothefactorslistedin4.18below. • EnsurethatGlow’sremunerationpackagesarecompetitiveinviewofindustrypractices,andjudgewheretoposition Glowrelativetoothersimilarcompanieswithrespecttosalariesandrelevantperformanceofcomparablebanks. • Providearemunerationpolicyandpackagedesignedtoattract,retainandmotivatestaffofoutstandingabilityand ofthequalityrequiredbut,theCommitteeshouldavoid,wherepossible,payingmorethanisnecessaryforthispurpose. • WithrespecttoearlyretirementsfortheChiefExecutiveOfficerandseniorexecutives,theCommitteeshouldavoid rewardingpoorperformance,whiledealingfairlywithcaseswheredepartureisnotduetopoorperformance. • EnsurethatsuccessionplansforCEOandEVPsarereviewedperiodically,throughassessmentofspecificsenior executivepositionsandqualifiedpotentialreplacements. Salary and Benefits of CEO and EVPs. • ReviewthesalaryandbenefitsoftheChiefExecutiveOfficer(CEO)andontherecommendationoftheCEO,review thesalaries,andbenefitsoftheExecutiveVicePresidents(EVPs)individually,attheendofeachfinancialyear. Bonus of CEO and EVPs. • OperateanannualperformancerelatedbonusschemefortheChiefExecutiveOfficerandExecutiveVicePresidents. Approvetheobjectivesandthecompensation(whichforExecutiveVicePresidentsisproposedbytheCEO).Annual performancebonusshouldbeapercentageofbasesalaryanddependupontheachievementofindividualperformance targetswhichreflectGlow’sstrategicobjectivesandtheindividual’scontributiontosuchobjectives.Bonusesshould bealignedtogivetheChiefExecutiveOfficerandExecutiveVicePresidentsincentivestoperformatthehighestlevels. Share Options Issued by Glow • MakerecommendationstotheBoardonexecutiveshareoptionsinGlow. Pensions and Life Assurance of CEO and EVPs • AssessreasonablenessofpensionsandlifeassurancebenefitsfortheChiefExecutiveOfficerandEVPs.Ingeneral, pensionablesalaryshouldnotincludeannualbonusesorthevalueofothercontingentbenefits. Aggregate Salary and Bonuses of VP and SVP • Reviewtheaggregatesalary,benefitandbonuspackageoftheVicePresidents(VPs)andSeniorVicePresidents (SVPs)ofthecompanywithareviewofindividualpackagethatexceedthemaximumlevelundertheapplicable Glowgradingsystem. Notice Period for Resignation of CEO and EVPs • EstablishnoticeperiodsfortheChiefExecutiveOfficerandEVPsatinitialappointment.Noticeperiodsshould notbelessthan3months. • ApprovethetermsandconditionsofearlyretirementsfortheChiefExecutiveOfficerandEVPs.

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3) Roles and Responsibilities of the Board • TheCompany’sBoardofDirectorshasclearlyspecifiedtheroles,dutiesandresponsibilitiesofthedirectorsand themanagement.TheBoardofDirectorshasappointedthePresidenttoberesponsibleformanagementofthedaily operationsoftheCompany.TheBoardshallapprovethevision,mission,strategy,goals,businessplanandbudget oftheCompanypresentedtoitbythemanagement.Inaddition,theBoardofDirectorshastheinternalcontrol mechanismforsupervising,monitoringandevaluatingtheoperationalresultsofthemanagementbyusingoperating objectivesbasesinmeasuringtheoperationsofthemanagementandtheemployees. • TheBoardofDirectorshassetuppoliciestoencouragethebusinessundertakingformaximumbenefitsinparallel withtheencouragementofbusinessundertakingwithethics.Inordertocreateanorganizationwithstandardized plansandoperationsandtoensurethatallpartieswillbetreatedequallyandfairly,theBoardofDirectorshas establishedtheCodeofConductofthedirectors,themanagementandtheemployeesfortheiracknowledgement, complianceandadherenceinperformingtheCompany’sbusinessmissions. • Inordertopreventtheoccurrenceofconflictsofinterest,theBoardofDirectorshasestablishedthepoliciesand operatingguidelinestopreventdirectorsandemployeesoftheCompanyfromexploitingforpersonalbenefitsbynot allowingthedirectorsandtheemployeestoperformanyrelatedtransaction,whichmightcauseconflictsofinterest oftheCompany.Incaseswhereitisnecessarytoperformtherelatedtransaction,theBoardofDirectorshasspecified thatsuchoperationmustbeinaccordancewithcriteriaspecifiedbytheSETbyhavingthepriceandconditions asifitwasmakingthetransactionwiththirdparties.Furthermore,thedirectorsortheemployeeswhowillbenefit fromsuchtransactionshallnotbeallowedtoparticipateintheapprovalprocess. • TheCompany’sBoardofDirectorshastheinternalcontrolsystemsinplacethatcoverallaspectssuchasfinance, operationsandmanagementsoastobeinaccordancewiththerelatedlaws,rulesandregulations.Therearealso theauditingandbalanceofpowermechanismswhichareeffectiveenoughtoprotectandoverseetheshareholders’ capitalandcompany’sassets.Thedelegationofauthorityandresponsibilitiesofthemanagementandtheemployees isprescribedinanorderlymanner. • TheBoardofDirectorshasestablishedariskmanagementpolicytocoverallactivitiesoftheCompany.Businessrisks areassessedtwiceayear.Also,risksarediscussedduringBoardofDirectors’meetingsandmonthlymanagementmeetings.4) Board Meetings • TheBoardofDirectorshasatleast4fixedandconfirmedmeetingsayearduringthemonthsofFebruary,May,August andNovembertoconsiderandapprovethequarterlyfinancialstatementsandextraordinarymeetingsmaybe arrangedifandwhennecessary.Foreachmeeting,aclearagendaisspecifiedwithcorrect,completeandadequate supportingdocumentssubmittedtoeachdirectoratleast7daysinadvanceofthemeetingsothatthedirectorcan havetimetostudytheinformationbeforeattendingthemeeting.Eachdirectorcanopenlydiscussandexpress his/heropinion.TheChairmanwillcollectallcommentsandsummarizeinformationgatheredfromthemeeting. • TheCompany’ssecretariatshallrecordtheminutesofthemeetinginwriting.Minutesofmeetingoftheprevious meetings,whichhavebeenapprovedfromtheBoardofDirectors’meeting,shallbekeptandmadeavailableforthe directorsandconcernedpartiestoinspectatanytime.5) Board Self Assessment • Everyyear,theBoardwillundertakeaformalandrigorousannualevaluationofitsownperformanceandthatofits committeesandindividualdirectors.

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• TheChairmanoftheNominationandRemunerationCommitteeensuresthatevery2years,themembersofthe BoardwillassesstheperformanceoftheBoardanditsmembercommitteesasawholeorspecificallytotheissues, nottoanydirector.Overaperiodoftime,theBoardwilldevelopabenchmarkofitsperformanceyear-on-year. • TheChairmanoftheNominationandRemunerationCommitteeensuresthatevery2yearseachindividualBoard memberisevaluatedinitscapacityasamemberoftheBoardormemberofoneofitscommittees.Individual evaluationisaimedtoshowwhethereachdirectorcontinuestocontributeeffectivelyandtodemonstratecommitment totherole(includingcommitmentoftimeforBoardandcommitteemeetingsandanyotherduties). • Thechairman(oftheBoard)willactontheresultsoftheperformanceevaluationbyrecognizingthestrengthsand addressingtheweaknessesoftheBoardand,whereappropriate,proposingnewmemberstobeappointedtotheBoard orseekingtheresignationofdirectors. • Intheannualreport,theBoardwilldisclosethattheperformanceevaluationoftheBoard,itscommitteesandits individualdirectorshasbeenconducted.Evaluationswillnotbedisclosed.Thenon-executivedirectors,ledbythe seniorindependentdirector,shouldberesponsiblefortheperformanceevaluationoftheChairmanoftheNomination andRemunerationCommittee,takingintoaccounttheviewsoftheexecutivedirectors.6) Remuneration • TheCompanyhasestablishedtheNominationandRemunerationCommitteewhosemainrolesaretoproposeto theBoardofDirectors,inthefirstinstance,anynewappointments,whetherofexecutiveorofnon-executivedirectors, andrecommendasuccessortotheChiefExecutiveOfficerwhenconsiderednecessary.TheCommitteewillreview Boardmembershiponaregularbasis,consideringinteraliathelengthofserviceofmembers,theircontribution totheworkoftheBoardandthebreadthofexpertiseoftheBoardasawhole. • TheCommitteeisalsoresponsibleforrecommendingtotheBoardtheremunerationarrangementfornon-executive andindependentmembersoftheBoard.TheCommitteeshalldefineonbehalfoftheBoardofDirectorsandthe shareholders,Glow’sremunerationpolicyfortheChiefExecutiveOfficerandExecutiveVicePresidentsandtodetermine theirspecificremuneration,benefitsandtermsofemploymentincludingpensionrightsandanycompensation paymentsandtomonitorimplementationofGlow’shumanresourcesvisionandstrategy.7) Board and Management Training • NewdirectorsshallbeprovidedwithaDirectorsPackagesothattheymayperformtheirdutyeffectively.Theyshall alsoattendaDirectorstrainingwithin6monthsoftakingtheirpost. The Supervision of the Use of Inside InformationTheCompanyhasestablishedtheoperatingguidelinesandpenaltyrulesregardingtheuseofinternalinformationoftheCompanytopreventthedirectors,themanagementortheemployeesfromusingthematerialinformationwhichhasnotbeendisclosedtothepublicorinformationthathasbeenalreadydisclosedbutnotinnecessaryleveltobeusedforhis/herownbenefitorforthebenefitsofathirdpartywhohasbeentoldaboutsuchinformationandinwhichtheuseofsuchinformationhasaconflictofinterestormightresultindamagestotheCompanyand/orthepublic.

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Corporate Social Responsibilities

The Glow Group run its business while developing good and sustainable relationships both in environmental and social affairs. The Company’s mission is to operate projects in an environmentally responsible manner, along with the development of quality of life of the communities located surrounding the Company, emphasising the health, working conditions and safety of employees, contractors and communities, as well as providing specialists and promoting on development of energy agencies in Thailand for the public benefit.

Social responsibility projects undertaken by the Company during 2007 included:

Education and Religion: • Continuing support for rural development projects in collaboration with the Office of Her Royal Highness Princess Sirindhorn, particularly educational development for hill-tribe students in the North of Thailand • Arranging on educational tutoring program “Pre-University Entrance” project to Rayong high school students, donating educational equipment, holding exhibitions on power generation, and offering plant tour programs to school children, college students, and the general public. • Arranging “Computer Literacy Program” to promote and develop understanding of computer and information technology together with LAN system amongst local students. • Donating computers to government offices in Rayong province to enhance administration work on data collection. The Company also regularly supports traditional festivals and cultural events of the local communities. • The Company makes financial contributions to temples located around the industrial estate and in nearby areas.

Community Development: • The Company has allocated and contributed the energy fund for the development of the local communities within a 5 kilometer radius around the power plants since July 2007 at the rate of 0.02 Baht/kWh for a coal-fired plant and 0.01 Baht/kWh for a gas-fired power plant, according to the guidelines established by Ministry of Energy. • Supporting the quality of life and environment development fund in Map Ta Phut and Ban Chang communit ies to improve qual i ty of l i fe and environment in the local communities. • Supporting ‘Strong Rayong Foundation Fund’ to develop potential growth on agriculture, industry and tourism of Rayong Province in all aspects.

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Sport and Health Care: • Sponsoring a mobile clinic by arranging for medical specialists to provide free examinations and health care for the residents in local communities surrounding the industrial estate. The Company also supports various sport competitions at both municipal and provincial levels. • The Company is an active member of the Public Relations Club of the Map Ta Phut Industrial Estate (MPR Club). The club’s objectives are to help arranging public activities to promote local welfare and serving as a forum to exchange ideas on important events as well as finding solution to common problems. • Supporting other activities, e.g. donating additional funds to Camillians Social Center to help HIV/AIDS infected patients.

• Supporting traditional sporting activities, arranging anti-drug campaign by cooperating with local communities and educational institutes in the Map Ta Phut area. This activity is held annually. • Supporting fitness projects for senior citizens in local communities, reducing illness and creating social learning process for people of all ages and genders.

Environmental Issues: • Arranging “Mobile Power Plant Project,” presenting the business operations of Glow Group through exhibitions to provide information and knowledge to the governmental agencies, educational institutes and general public. • Arranging the ‘Environmental Governance Project’ by collaborating with the Industrial Estate Authority of Thailand, in which Glow Group presented information on environmental management via on-line system post in order to educate the to general public. • Supporting breeding of aquatic animals by coordinating with Map Ta Phut Industrial Port and Industrial Estate Authority of Thailand to replace aquatic animals in the sea and make possible their seasonal breeding cycles.

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Environment, Health and Safety Management In 2007, the Company committed to corporate social responsibility and environmentally sustainable activities. An Environment, Health and Safety (EH&S) management system for our employees, contractors and the surrounding communities is the prime focus on sustainable achievement for GLOW Group.

Environment, Health and Safety Management

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The focus on EH&S programs and initiatives are as follows: • In January 2007, Glow Rayong Facilities (Glow SPP1, Glow SPP2&3 and Glow Energy Plc.) participated in the “Environmental Good Governance Project” organized by The Map Ta Phut Industrial Estate (MIE). In this project, each facility committed to the “Emissions Reduction Program” which consisted of air and wastewater emissions and industrial waste generation, which stipulated targets to be reached and a time-frame in which to achieve them. The Auditors from MIE and local representatives have visited each plant on a quarterly basis to follow-up on progress and effectiveness of the programs. The overall audit results at Glow Rayong Facilities were satisfactory, ranging form very good to excellent. Based on the outstanding performance at each facility, Glow Rayong Facilities received the “Green Flag of Environmental Good Governance” from MIE on January 29, 2008.

• Glow SPP2&3 installed an emission display board in front of the plant to publically demonstrate online air emissions publicly, showing the transparency of our environmental reporting system. • The environmental key performance indicator has been initiated to control emissions and environmental impact of our activities. Emissions from our business are continually monitored and controlled and are well below the required standards in comparable with the best available control technology worldwide. The low emission levels for the new IPP project were designed not only to meet Thai standards but also to be one of the world’s cleanest coal-fired power plants.

• Ash from existing coal-fired power plants is recycled in the cement industry and is also being used for brick production in local communities. • The Company has always been transparent in measuring and reporting emission levels by installation of the Continuous Emission Monitoring System (CEMS) at every exhaust stack. • The Company has promoted and achieved ISO 14001 internal certification at Glow SPP1, Glow SPP2&3 and Glow IPP as verified by the Glow Internal Audit Team in Q3 2007. • A corporate safety culture program has been launched and promoted within the Company through activities such as Corporate Safety Day, Near Miss reporting and the Zero Lost Time Accident Campaign. • Health and Safety Risk Assessment Procedure and Ergonomic Guidelines have been established and implemented to provide provisions and guidelines for employees. In addition, contractors must sign up to Glow’s Health and Safety Requirements for Contractors before contracts are agreed. The Company confirms that all activities of the GLOW Group were carried out in compliance with SUEZ Environmental Charter, Glow Environmental Impact Assessments (EIA) and other Thai Environmental Regulations.

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1) Mr. Guy Richelle ChairmanoftheBoard

2) Mr. Peter Valere Germain Termote DirectorandChiefExecutiveOfficer

3) Mr. Kovit Poshyananda IndependentDirectorandAuditCommittee

4) Mr. Vitthaya Vejjajiva IndependentDirectorandAuditCommittee

5) Ms. Supapun Ruttanaporn IndependentDirectorandAuditCommittee

6) Mr. Dirk Achiel Marc Beeuwsaert Director

Board of Directors

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7) Mr. Guido Geeraerts Director

8) Mr. Johan De Saeger Director

9) Mr. Rajit Nanda Director

10) Mr. Philip De Cnudde Director

11) Mr. Anut Chatikavanij Director

12) Mr. Brendan G. H. Wauters Director

� � � � � � � � �� �0 � ��

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Management Team

1. Mr.PeterValereGermainTermote

2. Ms.SripraphaSumruatruamphol

3. Mr.EsaHeiskanen

4. Mr.PajongwitPongsivapai

5. Mr.SuthiwongKongsiri

1 2

3 4 5

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1. Mr.PeterValereGermainTermote ChiefExecutiveOfficer

2. Mr.JohnA.Guidy ExecutiveVicePresidentandChiefOperatingOfficer

(January-November2007)

3. Ms.SripraphaSumruatruamphol ExecutiveVicePresidentandChiefCommercialOfficer

4. Mr.EsaHeiskanen ExecutiveVicePresidentandChiefProjectDevelopment

&IPPBusiness

5. Mr.PajongwitPongsivapai ExecutiveVicePresidentandChiefOperatingOfficer

(November2007-Present)

6 Mr.SuthiwongKongsiri ExecutiveVicePresidentandChiefFinancialOfficer

7. Ms.NatnichaKulcharattham SeniorVicePresident-HumanResources&

Administration(ResignedJanuary1,2008)

8. Mr.SvendErikJensen SeniorVicePresident-Construction&TechnicalManagement

9. Mr.KanitThangpetch SeniorVicePresident-RayongFacilitiesManagement

10.Mr.LouisStephenHolub SeniorVicePresident-OperationsSupportServices

11.Mr.MichaelW.Reiff SeniorVicePresidentandChiefFinancialController

12.Mr.WisitSrinuntawong SeniorVicePresident-Engineering

13.Mr.NarongchaiVisutrachai SeniorVicePresident-IPPBusiness&GovernmentAffairs

14.Ms.ChamaipornSoonthorntasanapong VicePresident-Compliance&Insurance

15.Ms.SirichanChotchaisathit VicePresident-IndustrialSales

16.Mr.PrateepPhuthamrugsa VicePresident-SupplyChainManagement

17.Mr.SomchaiKlinsuwanmalee VicePresident-Government&PublicAffairs

18.Ms.MantanaKunakorn VicePresident-HumanResources&Administration

19.Mr.RenaudLouisAlbertPilleul VicePresident-IndustrialCustomerRelations

20.Mr.JirasekPoomchai VicePresident-Logistics&FuelManagement

21.Ms.SuttasineePengsupaya VicePresident-Accounting

22.Mr.ChaiwutRattanapornsinchai VicePresident-InformationTechnology

23.Ms.UnchanaKittipiyakul VicePresident-Budgeting&BusinessControlling

24.Dr.SomgiatDekrajangpetch VicePresident-AssetOptimization

25. Mr.SiroteVichayabhai VicePresident-Finance&InvestorRelations

26.Mr.AkarinPrathuangsit VicePresident-Marketing&BusinessPlanning

27.Mr.AnutarachaiNatalang PlantManager-GlowEnergysite(Phase1&2)

28.Mr.ApichartJamjuntr PlantManager-GlowSPP2,GlowSPP3,GlowEnergysite(Phase3&4)

29.Mr.ApidechSiriphornoppakhun PlantManager-GlowSPP1&GlowDeminWaterSite

30.Mr.SuratchaiBangluang FacilityManager-GlowIPPSite

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Community relations activities and general social activities related to our activities are embedded in our mission and culture.

Care for environment projects

Develop people quality of life for communities in the areas where we do business

A prime focus on environment health and safety for our employees, contractors and the surrounding communities

Provide expertise and support to development of Thai energy sector that add value to the authorities

WE GLOW

O

UR SOCIETY

1, 2, 3, 4 Students from Wat Map Chalood School, Rayong

1 2 3 4

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Community relations activities and general social activities related to our activities are embedded in our mission and culture.

Care for environment projects

Develop people quality of life for communities in the areas where we do business

A prime focus on environment health and safety for our employees, contractors and the surrounding communities

Provide expertise and support to development of Thai energy sector that add value to the authorities

WE GLOW

O

UR SOCIETY

1, 2, 3, 4 Students from Wat Map Chalood School, Rayong

1 2 3 4

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Business

Glow’s business objectives remain balanced between achieving long-term and short-term financial targets, from both accounting and cash perspectives. We must also comply with the boundary conditions of proper and sustainable business and social responsibilities. To achieve our objectives, we leverage on our strength of proven track records of superior reliability, critical scale, strategic location, stability of cash flows and strong technical support from our major shareholder SUEZ.

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Business

WeareoneofthelargestprivateelectricitygeneratorsandprovidersofindustrialutilitiesinThailand.WeoperateIPPandcogenerationfacilities(mostofwhichoperateasSPPsunder Thailand’s SPP program) and our core business is to produce and supplyelectricity toEGATandelectricityandsteam to industrialcustomers in theMIEArea.WehaveoperatedinThailandsince1993andourfiveprincipalproductionfacilitiesarelocated in Rayong and Chonburi provinces on the industrial eastern seaboard ofThailand.OnDecember31,2007,wehadatotalgeneratingcapacityof1,708MWofelectricityand967tonsperhourofsteam.

Overview

Electricity generation and sales is the most importantcomponentofourbusiness,accounting for83.9percentofourtotalrevenuesin2007.Generationandsalesofsteamis also a significant part of our business, accounting for12.8percentofourtotalrevenuesin2007.Wecurrentlyownand operate fiveprincipal production facilities, fourofwhichgenerateelectricity.OurproductionfacilitiesandtheiroperatingcharacteristicsasofDecember31,2007,are:

• GlowIPPplant,whichoperatesintheChonburi IndustrialEstateandcangenerate713MWof electricity;

• GlowEnergyplant,whichoperatesintheMIEand cangenerate358MWofelectricity,687tonsper hourofsteamand3,320cubicmetersperhour ofprocessedwater;

• GlowSPP1plant,whichoperatesintheEIEand cangenerate124MWofelectricity,90tonsper hourofsteamand70cubicmetersperhourof processedwater;

• GlowSPP2/SPP3plant,whichoperatesinthe MIEandcangenerate513MWofelectricity,190 tonsperhourofsteamand150cubicmetersper hourofprocessedwater;

• GlowDeminWaterplant,whichoperatesintheEIE andcangenerate120cubicmetersperhourof processedwater.

In2007,wehadtotalrevenuesofBaht33,011.3millionandanetprofitofBaht4,782.8million.AsofDecember31,2007wehadtotalassetsofBaht54,023.7million.

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Structure of revenues

Revenues

We derive our revenues primarily from sales of electricity to EGAT and sales of electricity, steam and clarified anddemineralizedwatertoindustrialusersintheMIEArea.Thefollowingtablebreaksdownourrevenuesbysourcefortheperiodsindicated:

(Bahtmillions) (%) (Bahtmillions) (%) (Bahtmillions) (%)

Year Ended December 31,

2005 2006 2007

RevenuesfromSalesofGoodsand

RenderingofServices

Electricity

SalestoEGATbyIPP 8,616.9 30.1 10,705.0 31.5 10,161.8 30.8

SalestoEGATbySPPs 9,059.0 31.7 9,640.6 28.4 9,323.5 28.2

SalestoIndustrialCustomers 6,411.8 22.4 7,877.2 23.2 8,224.8 24.9

Total 24,087.8 84.2 28,222.8 83.1 27,710.1 83.9

Steam 4,101.4 14.3 4,029.9 11.9 4,219.2 12.8

Processedwater 305.7 1.1 340.4 1.0 336.6 1.0

Total 28,494.9 99.6 32,593.1 96.0 32,265.8 97.7

OtherIncome 101.1 0.4 1,398.7 4.0 745.4 2.3

Total Revenues 28,596.0 100.0 33,991.9 100.0 33,011.3 100.0

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Business strategies

1. Overview

Ourvisionistoenhanceprofitabilitythroughoperational excellenceandvalue-creatinggrowth.Wehavecreateda businessstrategythattakesintoaccountfourperspectives: commercial,operational,financialandhumanresources. Wehavebalancedourshort-andlong-termobjectives tocreateawell-definedsetofprioritiesandaction plansforourcompany.Forourexistingoperations,this involvesenhancementsinutilization,efficiencyand reliabilityandachievingoverallcostreductions,optimizing ourcostofcapitalandstrengtheninginternalreporting systemsandprocedures.Webelievethatourbusiness strategieswillprepareusforgrowthopportunitieswith newand/orexistingindustrialcustomers,andwillasposition usfavorablyforanewroundofIPPbiddingifand when suchopportunitiesarise.WiththeassistanceofSUEZ, weplantocontinuetodevelopahighlymotivatedand competentThaimanagementteamandworkforceto supporttheseefforts.

2. Commercial Perspective

Fromacommercialperspective,ourfocusison(a)growing ourcorebusiness,(b)proactivelymanagingourclient relationships,(c)optimizingfuelcostsandsecuring ourfuelsupply,and(d)maintainingandenhancing ourlocalknowledgeandrelationships.

(a) Pursuing growth of our core business

Weintendtogrowourcorebusinessbybothincreasing ourcapacitytomeetgrowingindustrialdemand forelectricityandsteamandbypositioningourselves tocompetesuccessfullyforopportunitiestoinstall newgeneratingcapacityinThailand.Forexample, in2005,wehavecompletedthefirstandsecond stageofGlowEnergy’scapacityexpansion in the MIE,allowingustoproduceanadditional78MW ofelectricityand138tonsperhourofsteam.We arenowconstructinganewCFBwithanetcapacity of115MWwhichisscheduledtobegincommercial operationbytheendof2009.Inadditiontothese projects,wewillconsiderfurtheropportunitiesto

expandandstrengthenourabilitytoserveindustrial customers(SeeExpansionandPotentialsection). Weintendtocontinuetoseekopportunitiesto acquirenewhigh-valueindustrialcustomersand growtofollowthedemandfromourexistingcustomers. Inaddition,wewillfocusonmaintainingandenhancing ouroperations,continuingtoprovidehigh-quality, reliableservice,performingourobligationsunderour EGATpowerpurchaseagreementsandstrengthening our institutional relationships within Thailand (including with our regulators), all of which, we believe,hasputusinafavourablepositiontobid fornewelectricitygenerationprojectsinThailand thatmayariseinthefuture.In2007,wewere beenawardedpreferredbidderstatusby the MinistryOfEnergyfora660MWcoalfiredIPPplant. IfwearesuccessfulinexecutingthenewPPAwith EGATandarrangingfinanceonlimitedrecourse basis,weplantostartconstructionwithin2008 andcommercialoperationsbytheendof2011. EGAThasalsorecentlyacceptedourapplication foranew74MWSPPlicense.Ifwearesuccessful insecuringadditionalnewindustrialcustomers, weaimtobuildanewcogenerationfacilitywith thestartofcommercialoperationsin2011.

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(d) Maintain and enhance local knowledge and relationships

Wehavealong-termcommitmenttoThailandandour corebusinessistogenerateandsupplyelectricity andsteamtocustomersinThailand.Wefocuson identifyingkeyindividualsforustotraintoleadour companyinfutureyearsaswellasonstrengthening our institutional relationships with EGAT, the government and government authorities and our regulators.

3 Operational perspective

From an operational perspective, our focus is on (a) maintainingandimprovingreliabilityandavailabilityofour generatingunits,(b)improvingourfuelefficiency,(c) reducingouroperatingcostsand(d)effectivelymanaging ourprojectsunderconstruction.

(a) Maintaining and improving reliability and capacity utilization

Our plant capacity utilization can be improved through capacity enhancement measures and reducingtheamountofunplannedoutageorreducing thedaysneededforscheduledmaintenance.Weare continuallyseekingtoimproveourperformanceinall areasthroughvariousmeasures,suchascondition andperformancemonitoring,preventiveandeffective maintenance and reduction of forced outages throughrootcauseanalysisandenhancedoperating procedures.

(b) Proactively managing our industrial customer relationships

Ourindustrialcustomerbaseisakeycomponent ofourbusiness.Ourindustrialcustomersare principallyinvolvedinthepetrochemicalproduction process,whichreliesuponstablesupplyofelectricity andsteamtoavoidstart-upcostsassociatedwith interruptionduringproduction.Assuch,ourfocus isonstrengtheningourrelationshipswithexisting customers,notonlybyprovidingthemwithareliable supplyofelectricityandindustrialutilities,butby working closely with them to further understand theirneedsandtodevelopwaysinwhichtofurther improveourlevelsofservice.Wefocusonvarious actionplans to improve customer satisfactionby improvingsupplyreliability,communication,incident handlingandproblemsolvingandfirmlybelieve thatcustomersatisfactionisthekeytocustomer retentionandacquisitionofnewcustomersornew contractsfromexistingcustomers.Webelieve thatourservicereliabilitysetsusapartfromour competitorsandpositionsusfavourablyasthe electricityandindustrialutilitysupplierofchoice inourmarkets.Wetargetcustomersforsteamand high-loadelectricity,whovaluereliabilityofsupply.

(c) Optimising our fuel management by reducing fuel cost and ensuring supply availability

Fuel is our major cost item and our business is exposedtofluctuationsinpriceandavailabilityof fuel(andinparticularcoal).Wecommitsignificant resourcestofuelmanagementandwillcontinue todoso.Weseekopportunitiestoenhanceour coalprocurementarrangementstoreduceour coalandfreightcosts,whichdirectlyaffectour profitability.Wecontinuetoexamineouropen positionsonfuelcostsand,inconnectionwithour ongoingeffortstoprotectourcompanyfromfuel pricefluctuations,wemayinthefutureenterinto hedgingarrangementsfromtimetotime.Ourprimary fuelsupplyarrangementsseektomaintainasufficient supplyoffuelthatiscriticaltoourabilitytooperate ourbusinessandwealsoseektomaintainprudent levelsofback-upfuelsupplies.

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(b) Improving fuel efficiency

Fuelisamajorcostitemforusandourfuelefficiency isanimportantdriverofourprofitability.Weseek tocontinuallyimproveouroperationalefficiency byoptimizingdispatch,criticalequipmentmonitoring, work processes and energy loss monitoring and mitigation.

(c) Reducing operational costs

Weseektominimizeouroperationalandmaintenance costsbycreatingtransparencyinthemannerand timing in which the costs are incurred and by exercisinggoodjudgmentastowhetherthose erpenses are needed. We have a focus on cost managementthroughreliablesystemsandcontrol procedures.Wehavealreadyachievedsubstantial cost improvements in our long-term service agreements.Inthefuture,wehopetobeableto refurbishpartsusedinGlowIPP’smajorinspections, whichwouldresultinsubstantialcostreductions. Our relationshipwithand technical support from SUEZenablesusnegotiateeffectivelywithsuppliers andtosourceequipmentandpartsoncompetitive terms.

(d) Executing projects effectively

Wearecontinuallyeitherconstructingnewpower plantstoservenewcustomers’demand,implementing projectstoenhanceperformanceand/orconstructing distributionlinestoourcustomers.Theseprojectsare handledbyadedicatedteamofemployeesinan organizedandprudentmannerinordertoavoid delay,poorperformanceandthefinancialconsequences thereof.

4. Financial Perspectives

Maintain and improve our financial position

Our internal focus on excellence includes financial management. We actively evaluate opportunities to minimizetheweightedaveragecostofcapitalbyoptimizing our capital structure while reducing our exposure to financialrisks.Weseektoavoidcashforeignexchange riskbymatchingthecurrencyofcostsanddebtservice paymentswiththecurrencyoffreecashflow.Wehave a prudent but flexible interest rate risk management systemwhichissupportedbytheexpertiseoftheSUEZ financedepartmentswhoassistusindeterminingthe amountandtimingoffixingofinterestrates.Weseek to improve our management reporting systems and proceduresbyimprovingthereliabilityofthesystems and reviewing and documenting the processes. We continuetoimplementasustainableprogramofInternal Control(alsoreferredtoastheCodisorControlDisclosure Program),whichappliestoourcompanyasasubsidiary ofSUEZ,andwehavesigned-offtheSUEZEnergy internationalCodisentitiesattestationletterforthe accountingyear2007.Theappropriateimplementation, withintheGroup,ofthemethodologydevelopedunder theCodisProgramensuresthecomplianceofSUEZwith theFrench“LoideSécuritéFinancière”(“LSF”)andthe relatedFrenchregulatoryauthority(AMF)recommendations and,from2008,withtheEuropeanUnionregulation (7thand8thEuropeanDirectives).Theaforementioned lawsandregulationsseektopromotecorporateresponsibility, increasepublicdisclosure,andimprovethequality andtransparencyoffinancialreportingandauditing. Theyalsomakethecompanyexecutivesexplicitly responsibleforestablishing,evaluating,andmonitoring the effectiveness of their company's internal control structure. In addition, we actively monitor our cash balance, in conjunction with our capital expenditure plans, so that in the long run, shareholders value is maximized.For furtherdetailson theCodisProgram, seethe“InternalControl”section.

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Competitive strengths

1. Critical mass and reliability of operations

Webelievethatwehaveacriticalmassforouroperationsin Thailand.Glow IPPhas twoelectrical generators and ourcogenerationfacilitieshaveanaggregateof20electrical generators.Thissizeiscriticaltoourcompetitiveness sincewehaveinterconnectedourcogenerationfacilities toprovideareliablesupplyofelectricityandsteamto ourindustrialcustomers.Wehaveasteamnetworkwhich substantiallyreducestheriskofsupplyinterruption andpressurelossintheeventthatanyoneunitfails. Theinterconnectionofourfacilitiesprovidesuswitha numberofadvantages:weareabletodispatchour lowest-costgeneratingunitsandimprovethereliability ofourelectricityandsteamsupplytoourcustomers, wehavegreaterflexibilityincoordinatingandrotating maintenanceschedulesandweareabletoprovidegreater flexibilitytoourcustomersinschedulingmaintenance outagesandinsupplyingpeakstart-updemand.Overall, thesefactorshaveallowedourcogenerationfacilitiesto maintainhighreliabilityratesaswellastoreduceoperating costs.

Wedonot believe that the scale of our cogeneration operationscanbereplicatedinthenearterm,which we believelimitsourcompetitors’opportunitiestogrow theirbusiness.Thescaleofouroperationsallowsusto capitalizeonthesynergybetweenourvariousbusinesses, includingsystemredundancies,economiesofscale, sparepartsmanagement,operationalexpertise,automated systems, procedures, qualified and trained personnel and leverage with regard to suppliers. Our size and long-term presence also allows us to attract a highly motivatedandcompetentworkforceandprovidesus withkeymarketknow-howandcredibilityasalong-term playerintheThaienergyindustry.WeoperateIPPand cogenerationfacilities(mostofwhichoperateasSPPs under Thailand’s SPP program), giving us a major presenceintwodistinctsectorsoftheThaielectricity supply market and a diverse business “footprint” in Thailand.Inaddition,wehavefullornear-fullownership and sole operational control of our key assets,which allows us to control strategic business decisions and reactquicklyand inacoordinatedmanner tomarket developments.Webelieve that these factors, in turn, positionustocapturenewbusinessinthefuture.

2. Strategic location and assets

Inadditiontocriticalmassinouroperations,webelieve thatthelocationandconcentrationofourassetsalso providesuswithakeycompetitiveadvantage.Weare the principal private electricity supplier in the MIE, whichisthelargestandmostimportantindustrialestate forpetrochemicalcompanies inThailand,andoneof thelargestindustrialutilitiessuppliersintheMIEArea. Weoperateacentralizedutilityparkthathasallowed

Webelievethatourprincipalcompetitivestrengthsarethefollowing:

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ustoapplyourstrategicresourcesinafocusedmanner toachieveoperationalstrength (including in termsof systemredundanciesandinfrastructureconnections) efficientlyandeffectively.OuroperationintheMIE Areaprovidesuswithanestablishedpresenceand businessinfrastructureinakeyareaofThailandand hasaffordedusanopportunitytodevelopimportant businessrelationshipswithsomeofThailand’slargest companies.Ourfacilitiesarelocatedcentrallywithin theMIEandaresurroundedbyseveralkeypetrochemical producers.Additionally,wehave invested ina supply infrastructurethatconnectsourfacilitiestoourclients via an underground electrical network and an above- groundsteampipenetwork.Industrialactivityinthe MIEAreaisexpanding,whichwebelievewillprovide uswithattractiveopportunitiesforgrowth.Weareable touseourexistingpropertyandfacilitiestoexpandour operations.

WeoperateIPPandcogenerationfacilities(mostofwhich operateasSPPsunderThailand’sSPPprogram),giving usamajorpresenceintwodistinctsectorsoftheThai electricitysupplymarketandadiversebusiness“footprint” inThailand.Ourassetsarealsodiversifiedinthesense thatwe(i)operatebothgas-andcoal-firedgenerating units,(ii)selltoindustrialcustomersaswellastoEGAT, (iii)sellmaterialamountsofbothelectricityandsteam and(iv)operateIPP,SPPandnon-SPPcogeneration facilities.Thisdiversifiedportfolioofproducts,customers andplantsgivesusamajorpresenceintheThaienergy supplymarket.

3. Established track record as a reliable supplier focusing on customer satisfaction

WehaveoperatedinThailandsince1993andbelieve that we have established a reputation as a reliable providerofelectricityandsteamofferingahighlevel ofservicetoourcustomers.Reliabilityofsupplyis particularlyimportanttoourindustrialcustomersoperating inthepetrochemicalsindustry,andwehavefocusedon developingourreliabilityofsupplyandqualityofservice inordertodifferentiateourselvesfromourcompetitors. IntheMIEArea,ourgeneratingparkiscentralizedand interconnectedandwehaveadedicatedtransmission network.Reliabilityofsupplytoindustrialcustomers isfurtherenhancedthroughimplementationofcritical redundanciesandthroughundergroundcablingfor electricitycustomers.Wefocusoncustomersatisfaction asakeydriverofcustomerretentionandacquisition. Webelievethatourtrackrecord,particularlywithour industrialcustomersintheMIEArea,hasstrengthened our reputationandpositionsuswell tocompete successfullyaswegoforwardtocapturefuturegrowth.

Incontrasttocertainofourcompetitors,generationand supplyofelectricityandsteamisourcorebusiness. Thisallowsustofocusourmanagementresourceson businessdevelopmentandoperationalexcellenceand tocapitalizeonsupportfromSUEZwhichisalsoprincipally engagedinelectricityandindustrialutilitiesproduction andsupply.

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4. Relationship with SUEZ

WeareasubsidiaryofSUEZaworldwidegroupwhoseexpertisespansmostmajorareasoftheglobalelectricityandgasindustries.Thisprovidesuswithaccesstocriticalexperience and technical know-how and allows us tocapitalizeonandbenefitfromgroup-widerelationships.WehaveformalizedcertainaspectsofthisrelationshipinasponsorsupportagreementthatGlowLtdhassignedwithawholly-ownedsubsidiaryofSUEZwhich,amongotherthings,providesuswithaccesstocontrol,operationaland project consulting support from SUEZ Tractebel.WehavesignedaseparateagreementwithSUEZinwhichithasagreednottocompetedirectlywithusintheelectricitygenerationbusinessinThailand.

As SUEZ’s sole vehicle for investment in the electricitygenerationbusinessinThailand,webelievethatwewillcontinuetobenefitfromthisrelationshipgoingforward,underthetermsoftheseagreementsandotherwise.

5. Stability of revenues and cash flows

Mostofoursalesofelectricityandsteamaremadeunderlong-termsalescontractswithdurationsofapproximately15yearsforourindustrialcustomersandbetween21and25yearsforsalestoEGAT.Mostofourcurrentcontractswithindustrialcustomersexpirebetween2010and2015,whiletheEGATpowerpurchaseagreementsexpirebetween2016and2025forourSPPsandin2028forGlowIPP.Thisprovidesourbusinessanelementofstabilityandpredictability and affords us some level of protectionfrom competition. In addition, most of our industrialcustomers are in the petrochemical industry and, dueto the nature of petrochemical production processes,have relatively high load factors and relatively stablelevelsofdemand.

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History

GlowEnergywasincorporatedasTheCogenerationPublicCompanyLimitedinOctober1993.SUEZinGlowLtdinSeptember1997andacquireditsinitialinterestinGlowEnergy in November 2000 (and subsequently de-listedthe company). Our company was formed through thecombination of Glow Energy and Glow Ltd in December2004. In the reorganization,GlowEnergy acquiredGlowLtdfromSUEZTractebelonabookvaluebasisforanetpurchase price of Baht 7,114.8 million, bringing GlowIPP,GlowSPP1andGlowDeminWaterintoourcorporategroup. In February 2005, we changed our name from“Glow SPP Public Company Limited” to “Glow EnergyPublicCompanyLimited”.In 2007, we also set up Glow IPP2, and GHECO-One.GlowIPP2andGlowIPP3(formerlyGlowHemarajEnergyCo.,Ltd)areholdingcompanieswhileGHECO-One is anoperating company. These companies principal businessis developing power generation projects in Thailand andcertainneighbouringcountriesundertheThaiIndependentPowerProducerProgramand future similarprograms for

The following diagram sets out our current organizational and ownership structure:

Minority

SUEZ Tractebel1

Glow Energy

Glow

Glow SPP2

Glow SPP3

Glow IPP2 Holding

Glow IPP3

Glow SPP1

Glow IPP

Glow Demin

GHECO-One Hemaraj

30.89%

69.11%

100%

100%

100%

100%

100%

100%

95%

100%

65%

35%

Note: (1)SUEZTractebelholdsitsinterestinGlowEnergythroughitswholly-ownedsubsidiary,SUEZ-TractebelEnergyHoldingsCooperativeU.A.and

SUEZEnergy(Thailand)Co.,Ltd.

thepurchaseofpowerfromindependentpowerproducersby the Electricity Generating Authority of Thailand("EGAT") or any successor of EGAT. In December 2007,GHECO-One was selected as the preferred bidder for a660 MW coal fired project in the new round of IPPbidding. Glow Group owns a 65% share in GHECO-OneandHemarajLandandDevelopmentPlcowns35%.

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The following timeline sets out key steps in Glow Energy’s history and development

October 1993 : GlowEnergywasincorporatedunderthename[“TheCogenerationPublicCompanyLimited”].

February 1996 : TheCogenerationPlc.listeditssharesontheSET.

October 1996 : TheCogenerationPlc.’scogenerationplantbeganinitialcommercialoperation.

March 1999 : TheGlowSPP2/GlowSPP3hybridplantbegancommercialoperation.

November 2000 : SUEZTractebelacquireda62percentstakeinTheCogenerationfromSitePacificHoldings Limited.

February/March 2001 : SUEZTractebelincreaseditsshareholdinginTheCogenerationto99percentbypurchasing Banpu’ssharesandconductingatenderofferforremainingoutstandingshares.

August 2002 : TheCogeneration’ssharesweredelistedfromtheSET.

May 2003 : ChangeofcompanynamefromTheCogenerationPlc.toGlowSPPPlc.

December 2004 : GlowSPPacquired100percentofGlowLtdfromSUEZTractebel.

January 2005 : Phase4Stage1beganfullcommercialoperation.

February 2005 : ChangeofcompanynamefromGlowSPPPlc.toGlowEnergyPlc.

April 2005 : GlowEnergylisteditssharesontheSET.

December 2005 : Phase4Stage2becamecommerciallyoperational.

December 2007 : GHECO-Onewasselectedasthepreferredbidderfora660MWcoalfiredprojectinthe newroundofIPPbidding.

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ThefollowingtimelinesetsoutkeystepsinthehistoryofGlowLtdbeginningwithSUEZ-Tractebel’sinitialinvestmentinGlowLtd:

September 1997 : SUEZTractebelformedajointventurewithHemarajLandandDevelopmentPlc(“Hemaraj”), inwhicheachpartyhada50percentinterestwithrespecttoGlowLtd(formerlyH-Power Company Limited).H-Power at the time owned100percent ofGlowSPP1 (formerly IndustrialPowerCompanyLimited)and51percentofGlowIPP(formerlyBowinPower CompanyLimited).

February 1998 : GlowSPP1’s124MWcogenerationplantbegancommercialoperation.

May 1999 : GlowLtdacquiredtheremaining49percentinterestinGlowIPP,bringingitsinterestto 100percent.

February 2000 : SUEZTractebelincreaseditsinterestinGlowLtdto75percent.

2000-2004 : SUEZTractebelprogressivelyincreaseditsinterestinGlowLtdto100percentinaseries oftransactionsthatinvolvedanindirectsaleofafivepercentinterestinGlowIPPtoHemaraj.

January 2003 : GlowIPP’s713MWplantbegancommercialoperation.

December 2004 : GlowSPPacquired100percentofGlowLtd’ssharesfromSUEZTractebel.

Although our reorganization has changed our corporate structure, it has not resulted in any significant operationalchanges.BothGlowEnergyandGlowLtdwerepreviouslyownedbyourmajorshareholder,SUEZTractebel,andtheyandtheirrespectivesubsidiariesweremanagedandoperatedasasinglegroupofcompanies.Thisremainsthecaseafterourreorganization. Although our key operating assets are owned by separate companies within our corporate group, wemaintain a single, coordinated management structure for all of our group companies and assets, which allows us tomonitorandcoordinatetheoperationsofourproductionfacilities.

SUEZ Tractebel, the Selling Shareholder, is itself a subsidiary of SUEZ, an international industrial and services groupwhichprovideselectricity,gas,waterandwasteservicessolutionsworldwide.SUEZTractebel,whichisheadquarteredinBrussels,Belgium, is amajor global energycompany,withenergy-relatedbusinesses throughoutNorthAmerica,SouthAmerica, Europe, the Middle East and Asia. Our company is part of SUEZ’s Electricity & Gas International (“EGI”)division,oneofSUEZ’sfourbusinesslines.EGIdevelops,buildsandoperateselectricity-andgas-relatedenergyfacilitiesthroughoutNorthAmerica,LatinAmerica,SoutheastAsiaandtheMiddleEast,includingtransportationanddistributionofliquefiednaturalgas

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Products and Production Facilities

Our core business is the generation and supply of electricity to EGAT and the generation and supply of electricity, steam, clarified and demineralized water to industrial customers within the Map Ta Phut area.

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Products and Production Facilities

The following map shows the locations of our head office and our production facilities.

Head Office and Plant Locations

Head office

Myanmar Laos

Cambodia

Malaysia

Bangkok

Chonburi

Rayong

Glow IPP

Glow Energy Glow SPP1 Glow SPP2/SPP3 Glow Demin Water Glow Energy Expansion

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OurcorebusinessisthegenerationandsupplyofelectricitytoEGATandthegenerationandsupplyofelectricityandsteam,withclarifiedanddemineralizedwaterassecondaryproducts,toindustrialcustomerswithintheMIEArea.

Products

(1) Electricity

Weproduceelectricity for saleboth toEGATand to industrial customers.Electricity sold toEGAT, the single wholesalebuyerofelectricity inThailand, is routed intoEGAT’snational transmissionsystem.EGATsells this electricity to PEA and MEA, which distribute it through their respective distribution networks to end users throughoutThailand.Weownandoperatean interconnected systemof supply sourcesand transmission lines and the various companies within our legal group have entered into contracts to sell electricity to industrial customersintheMIEArea.WhilethecontractsofGlowEnergy,GlowSPP2andGlowSPP3areprincipallywith industrialcustomersintheMIE,theyalsohaveotherindustrialcustomerselsewhereintheMIEArea.GlowSPP1 sellstoindustrialcustomersintheEIEandAIE.Wesupplytheelectricitythatweselltoourcustomersthrough dedicatedtransmissionlines.Thiselectricityisusedbyourindustrialcustomersforavarietyofindustrialpurposes, primarilyrelatingtopetrochemicalandpetrochemical-relatedmanufacturingandproductionprocesses.

(2) Steam

WesupplysteamtoindustrialusersintheMIEArea.GlowEnergy,GlowSPP2andGlowSPP3principallysell to industrial customers in theMIE andAIE,whileGlowSPP1 sells to industrial customers in the EIE. The steamthatwesell toourcustomers,atvarying levelsofpressure, isusedforavarietyof industrialpurposes. Becauseofinherentlimitationsontheabilitytotransportsteamoverlongdistances,mostofoursteamcustomers arelocatedwithinfourkilometersofoursteamgeneratingfacilities.

(3) Processed water

WealsosellclarifiedanddemineralizedwatertoindustrialusersintheMIEArea,whichisnotacorebusiness lineinitself(althoughtheproductionandsaleofdemineralizedwaterisGlowDemin’scorebusiness).However, itiscomplementarytoourelectricityandsteamgenerationbusinesses,andweenteredintothebusinessinorder tobeabletointernallygeneratethewaterthatweneedforourownproductionpurposes.Wesellexcessprocessed waterthatweproducetoindustrialcustomers.

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Production facilities Thefollowingtablesetsoutcertaininformation,includingkeycapacitystatistics,relatingtoourproductionfacilitiesasofDecember31,2007: Source:GlowEnergy.Althoughownership of ourplants restswith separate legal entitieswithin our corporate group,wemanage all of themcentrallythroughasingle,coordinatedmanagementstructure.Thisallowsustomonitortheoperationsofourfacilities,coordinatetheiroperationandimplementpolicyonagroup-widebasis.

(a) Glow IPP Plant

TheGlowIPPplantisanaturalgas-firedcombinedcycleplantthatbegancommercialoperationinJanuary2003. TheplantoperatesasanindependentpowerproducingfacilityunderThailand’sIPPprogram,generatingand sellingelectricitytoEGAT.TheGlowIPPplant,asofDecember31,2007,hadanelectricitygeneratingcapacity of713MW.

GlowIPP CIE 713 - - - Jan.2003

GlowEnergyPhase2&4 MIE 358 437 1,500 480 Oct.1996

GlowSPP1 EIE 124 90 - 70 Feb.1998

GlowSPP2/SPP3 MIE 513 190 - 150 Mar.1999

GlowEnergyPhase1 MIE - 250 1,110 230 Jul.1994

GlowDeminWater EIE - - - 120 Nov.1999

Total 1,708 967 2,610 1,050

Production Capacity Plant Name Location Electricity Steam Processed Water Commercial (MW) (tons/hr) (cu.m/hr) Operation Date

Production Facilities Clarified Demin

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(b) Glow Energy Phase 1 plant

TheGlowEnergyPhase1plant,consistingofanaturalgas-fired“D”typeboilerforsteamgenerationandawater productionplant,begancommercialoperationinJuly1994.ItislocatedintheMIEandiscapableofgenerating 250tonsperhourofsteam,1,110cubicmetersperhourofclarifiedwaterand230cubicmetersperhourof demineralizedwater.Becausethisfacilityusesrelativelyinefficientboilersforsteamgeneration,wedonotenter intolong-termsteamsupplycontractswithrespecttothisfacility,butratheruseittosatisfyshort-termdemand, start-up demand and excess capacity and to strengthen our overall system reliability. We principally sell the processedwatergeneratedbythisfacilitytoindustrialcustomersintheMIE.

(c) Glow Energy Phase 2 plant

TheGlowEnergyPhase2plantisacombinedcyclenaturalgas-firedcogenerationplantthatbegancommercial operationinOctober1996.AsofDecember312007,theplant,locatedintheMIE,hadanelectricitygenerating capacityof281MWandasteamgeneratingcapacityof300tonsperhour.ElectricitygeneratedbytheGlow EnergyplantissoldbothtoEGATandtoindustrialcustomersintheMIEandsteamissoldtoindustrialcustomers intheMIE.Inaddition,theGlowEnergyPhase2plantalsohaswatertreatmentfacilitiesthatcanproduce900 cubicmetersperhourofclarifiedwaterand280cubicmetersperhourofdemineralizedwaterforconsumption withintheGlowEnergyPhase1plantandforsaletoindustrialcustomers.

(d) Glow Energy Phase 4 plant

TheGlowEnergyPhase4plantisagas-firedcogenerationplantthatbegancommercialoperationinFebruary2005. AsofDecember312007,theplant,locatedintheMIE,hadanelectricitygeneratingcapacityof77MW,asteam generatingcapacityof137tonsperhour,clarifiedwatergeneratingcapacityof600cubicmetersperhourand demineralizedwatergeneratingcapacityof200cubicmetersperhour.Wesellelectricity,steamandprocessed waterfromtheplanttoindustrialcustomersintheMIE.

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(e) Glow SPP 1 plant

TheGlowSPP1plantisanaturalgas-firedcombinedcyclecogenerationfacilitythatbegancommercialoperation inFebruary1998.TheplantislocatedintheEIEandasofDecember31,2007hadanelectricitygenerating capacityof124MW,asteamgeneratingcapacityof90tonsperhourandademineralizedwaterproduction capacityof70cubicmetersperhour.WesellelectricitygeneratedbytheGlowSPP1planttoEGATandto industrialcustomersintheEIE.Wesellsteamandprocessedwaterfromtheplanttoindustrialcustomersinthe EIEandalsousethisprocessedwaterinternallyforsteamproductionandforsaletoGlowDeminWater.

(f) Glow SPP 2/ SPP 3 plant

TheGlowSPP2/SPP3plantisahybridnaturalgas-andcoal-firedcogenerationfacilitylocatedintheMIEthat begancommercialoperationinMarch1999.Technically,althoughweconsidertheplanttobeasinglegeneration facility, the gas-fired generation portion of the facility is owned by Glow SPP 2 and the coal-fired portion is ownedbyGlowSPP3.Theplantisdividedintwoparts:(i)two35MWgas-firedgasturbineunitsandtwoheat recoveryunitsand(ii)two222MWhybridcogenerationunits,eachcomprisingasteamturbineandcoal-fired circulatingfluidizedbedboiler.TheGlowSPP2/GlowSPP3planthad,asofDecember312007,anelectricity generatingcapacityof513MW,asteamgeneratingcapacityof190tonsperhourandademineralizedwater productioncapacityof150cubicmetersperhour.WesellelectricitygeneratedbytheGlowSPP2/GlowSPP3 plant toEGATandto industrialcustomers in theMIEArea.Wealsosellsteamandprocessedwater fromthe planttoindustrialcustomersintheMIE.

(g) Glow Demin Water Plant

TheGlowdemineralizedwaterplant,locatedintheEIE,begancommercialoperationinNovember1999.The expansionof40cubicmetersperhourofdemineralizedwaterwascompletedin2007.Itiscapableofproducinga totalof120cubicmetersperhourofdemineralizedwater.WesellprocessedwaterproducedbytheGlowDemin planttoindustrialusersintheEIE.

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Risk factors

Risk factors describe some of the significant risks that could adversely affect our company, our business and the value of our shares.

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Risk factors

We are exposed to fluctuations in fuel prices

Fuel is our most significant operating cost, accounting for 79.9 percent of our totalexpensesin2007.Whetherandtowhatextentwecanpassfuelpricefluctuationsontoour electricity and steam customers depends on the specific terms of our salesagreements.

Risks relating to us and our business

• UnderthetermsofGlowIPP’spowerpurchaseagreement with EGAT, which accounted for 30.8 percent of our total revenues in 2007, our fuel costs are all passed ontoEGATatcontractedheatrates.• UnderthetermsofourSPPpowerpurchaseagreements with EGAT relating to our gas-fired facilities, which togetheraccountedfor21.9percentofourtotalrevenues in2007,ourfuelcostsarepassedontoEGATatcontracted heatrates.

• UnderthetermsofourSPPpowerpurchaseagreementswithEGATrelatingtoourcoal-firedfacilities(ofwhichthere aretwo,90MWeach),whichtogetheraccountedfor6.3percentofourtotalrevenuesin2007,ourfuelcostsareonly partiallypassedontoEGATasthefreightchargesrelatingtoourpurchaseofcoal,whichareanimportantcomponent offuelcosts,arenotpassedontoEGAT.Overallcoalcosts,includingfreightcosts,haveincreasedsignificantlyover thepasttwotothreeyears,whichhashadanadverseeffectonourprofitmargins.• Underthetermsofourpowersupplyagreementswithindustrialcustomers,whichtogetheraccountedfor24.9percent ofourtotalrevenuesin2007,wegenerallysellelectricityatpricesthatarebasedontheretailelectricitytariffcharged bytheProvincialElectricityAuthorityofThailand(“PEA”),theelectricitydistributionutilityfortheareasofThailand inwhichweoperate.AlthoughthePEAtariffisdesignedtoreflectfluctuationsinfuelpricesthroughafueltransfer charge(“FT”),itdoessoinaccordancewithafuelindexmaintainedbyEGATwhichisnotdesignedtoreflectouractual fuelcostsandonlyfactorsincoalcosts(whichwealsousetogenerateupto120MWofelectricitythatwesupplyto ourindustrialcustomers)toaverylimitedextent.Wearealsoconstructinga115MWcoalfiredplanttosupplyindustrial customerswithscheduledCODattheendof2009.Thiswillincreasefueldiversificationbutalsocoalcommodityrisk. Inaddition,theFtdoesnotalwaysfunctionasdesigned.Seesectionbelow“—Wepriceaportionofourelectricitysales byreferencetothePEAtariff,whichdoesnotreflectouractualcostsandmaynotbeadjustedasdesignedtoreflect fluctuationsin,amongotherthings,fuelcostsandinflation”.• Underthetermsofoursteamsupplyagreementswithindustrialcustomers,whichtogetheraccountedfor12.8percent ofourtotalrevenuesin2007,wesellsteambasedonpricesthatareindexedtofluctuationsinthepriceofnaturalgas, butnotcoal(whichwealsousetoproducethesteamthatwesell).Inaddition,thenaturalgasindexationinoursteam tariffsdoesnotfullyreflectouractualnaturalgascosts.

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Becausewecannotpassonallthechangesinourfuelcoststoourcustomers,weareexposedtoincreasesinthepricesoffuel(andinparticularcoal).Iftherearematerialincreasesinourcostoffuelandweareunabletopasstheseincreasesontoourcustomers,thiswilldirectlyreduceourprofitmarginsandcouldhaveanadverseeffectonourbusiness,resultsofoperations,financialsituationandprospects.

We price a portion of our electricity sales by reference to the PEA tariff, which does not reflect our actual costs and may not be adjusted as designed to reflect fluctuations in, among other things, fuel costs and inflation

Under the termsofourelectricitysupplyagreementswithour industrialcustomers,which togetheraccountedfor24.9percentofourtotalrevenuesin2007,wegenerallysellelectricityatpricesthatarebasedontheretailtariffchargedbyPEA(suchpricesaretypicallyexpressedasapercentagediscounttothePEAtariff).ThePEA’stariffsaredeterminedbytheThai government and take into account the electricity generation, purchase, transmission anddistribution costs ofPEA,theMetropolitanElectricityAuthorityofThailand(the“MEA”)andEGAT,themajorelectricityutilitiesinThailand.So, the PEA tariff rates, and consequently the prices at which we sell electricity to our industrial customers, do notnecessarilyreflectouractualcostsofproducingandsupplyingthiselectricity.The PEA tariff is designed to reflect fluctuations in fuel prices, inflation, foreign exchang rates and other factors byapplyingoftheFT.However,themostsignificantcomponentoftheFT,thefuelcostcomponent,referstoageneralfuelindex that does not necessarily reflect our actual fuel costs, and only factors in coal costs, whichwe use partially togenerateupto120MWofelectricitythatwesupplytoourindustrialcustomers,toaverylimitedextent.Inaddition,theFTdoesnotalwaysfunctionasdesigned.WhentheFTadjustmentisnotappliedornotfullyappliedtothePEAtariffwhen fuel costs are rising, itmeans that the prices atwhichwe sell electricity to our customers are not increased toreflect higher prevailing fuel prices, and consequently, our profit margins are reduced. For the foregoing reasons, ourreliance on the PEA tariff could have an adverse effect on our business, results of operations, financial situation andprospects.We are highly dependent on EGAT

EGAT is our largest andmost important customer and is committed to purchasing electricity fromus under ourEGATpowerpurchaseagreements,whicharelong-termcontractswithdurationsfrom21to25years.TheEGATpowerpurchaseagreementsarematerial toourbusiness,accounting for59.0percentofour revenues in2007.EGAT is thedominantplayerintheThaielectricitymarket.Inadditiontobeingthesinglewholesalebuyerandcontrollingallofthewholesaletransmissionofelectricity inThailand,EGAT isalsoThailand’s largestelectricitygenerator.EGATmay in the futurebelistedintheStockExchangeofThailand.WecannotpredictwhateffectEGAT’sprivatizationwouldhaveonourbusiness,althoughanysucheffectcouldbemateriallyadversetous.Forexample,inthepastwewerenotrequiredtocompetewithEGATforinstallationofnewelectricitygeneratingprojects,althoughwemayinthefutureberequiredtodosoasaresultof its privatization. A number of our important contracts contain unclear termswhich have led to disagreementswith

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EGATregardingtheoperationofourbusiness,asdiscussedbelowinthissection“—Wehavehadanumberofsignificantdisputes with EGAT in the past” and which could result in further disputes in the future. Any material disputes ordisagreements that we have with EGAT could have an adverse effect on our business, results of operations, financialsituationandprospects.

We are highly dependent on a small number of industrial customers concentrated in the petrochemicals sector

InadditiontoEGAT,wearealsohighlydependentonasmallnumberofindustrialcustomers.Ourtenlargestindustrialcustomers(which,fortheavoidanceofdoubt,excludesEGAT)accountedfor29.7percentofourtotalrevenuesin2007.Adisruptionofourrelationshipwithoneormoreofourindustrialcustomerscouldhaveanadverseeffectonourbusiness,resultsofoperations,financialsituationandprospects.Inaddition,manyofourcontractswithindustrialcustomershavetermsthatareunfavorabletous,whichcouldresult inlargecontractualclaimsagainstusorearlyterminationofthesecontracts. Further, our industrial customers are highly concentrated both geographically and in terms of industrialclassification.MostofourindustrialcustomersarelocatedintheMIEorelsewherewithintheMIEArea.Thisexposesustoincreasedriskofanaccident,naturaldisaster, infrastructureorotherfailureorbreakdowndisruptingthefacilitiesoftheMIE,theotherindustrialestatesinwhichourindustrialcustomersarelocatedortheMIEAreagenerally.Inadditiontotheirgeographicconcentration,manyofourindustrialcustomersarecompaniesoperatinginpetrochemicalorpetrochemical-relatedindustries.Thisexposesthem,andindirectlyus,totheperformanceofthepetrochemicalsector.Many petrochemical products are commodities and the petrochemical industry is highly competitive. In addition,significantpricefluctuationsinthebusinesscyclearecommoninmanypetrochemical-relatedindustries.Thesefactorsmayaffectourabilitytoconcludenewagreementswiththesecustomersornegativelyaffectourdemandandloadfactor,customercreditworthiness,thetimingofourcustomers’expansionsandtherebythetermsonwhichweareabletoreachany suchnew agreements andmay, for these reasons or otherwise, have an adverse effect on our business, results ofoperations,financialsituationandprospects.Inapproximately3to4years,manyofourlong-termsalesagreementswithourindustrialcustomers(forbothelectricityand steam) will begin to expire. However, we have successfully extended some of those contracts and secured newcontractswithindustrialcustomers.Certainofthesecontractsaresignificanttoourbusinessandsomeofthesearewithcustomersthatareaffiliatesofourcompetitors,includingPTTPcl(“PTT”)(whichisitselfcompletingconstructionofamajorindustrialutilitiesproductionfacilityintheMIEArea)anditssubsidiariesandaffiliates,and/orarecurrentlyintheprocessofconstructingtheirownindustrialutilitiesgenerationfacilities.Wecannotassureyouthatwewillbeabletoretain these customers or find new customers to replace them on commercially reasonable terms when our salesagreementswiththemexpire.Inaddition,it isimportanttoourbusinesstomaintainminimumlevelsofsteamsalesinordertomeetapplicablegeneratingefficiencyrequirements(andfailuretodosocouldresultinterminationofcertainofourEGATpowerpurchaseagreements).Ifweareunabletoretainourcustomersortofindnewcustomerstoreplacethemoncommerciallyreasonabletermsandalongtheproductlinesthatwerequire,thiscouldhaveanadverseeffectonourbusiness,resultsofoperations,financialsituationandprospects.

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We face significant competition

We face significant competition, particularly in respect to our supply of electricity and steam from our cogenerationfacilitiestoindustrialcustomersintheMIEArea.Althoughourcustomersarepartytolong-termagreementswithus,wecompetewiththeutilitybusinessunitsofbothPTTChemicalPublicCo.,Ltd.,amergedcompanybetweenThaiOlefinsPlc (ourexisting industrialcustomers)andNationalPetrochemicalPlc (which is theownerof thisutilitybusiness)andPTTUtilityCompanyLimited(“PTTUtility”),whicharebothaffiliatesofPTT,andthePEAfornewcustomers.PTTUtilityis a recently-established joint venture ofPTTwith its affiliatesPTTChemical andPTTAromatics andRefining that islocatedinthevicinityoftheMIEandgenerateselectricityandsteam.PTTChemicalutilitybusinessunit,PTTUtilityandPEAhave certain competitive advantages over us. PTTChemical andPTTUtility are affiliatedwithPTT, the principalnaturalgassupplierinThailandand,throughthisrelationship,withanumberofcompaniesintheMIEArea(includingmany of our important customers). PTT also has an equity interest in a number of our industrial customers (mostsignificantlyPTTChemical(previouslyknownas“ThaiOlefinsPlc”)andPTTAromaticsandRefining(previouslyknownas“Aromatics (Thailand) Plc”, sales to which accounted for 11.5 per cent. of our total electricity sold to industrialcustomers(inMWh),28.6percentofourtotalrevenuefromsalesofsteamand6.5percentofourtotalrevenuesin2007.PEA,ontheotherhand,doesnotrequireitscustomerstoenterintolong-termcontracts.According to market information as of December 2007, PTT Utility aim is to support the future growth of thepetrochemicalbusinessofthePTTgroupofcompanies,butmayalsoservetheutilitiesneedsofnearbyfactoriesintheMIEArea.Webelievethatthisprojectwillfurtherincreasethelevelofcompetitionthatwefaceforindustrialcustomers,particularlyinthefollowingrespects:(i)weneedtomaintainsteamsalesandarealreadyfacinglowerlevelsofnewsteamdemand,(ii)certainofourimportantsteamcustomersarePTTaffiliatesand(iii)certainofourexistingcustomersalreadydobusinesswithPTTanditsaffiliates.Seesection“Business—Competition”formorediscussionofthecompetitiverisksthatwebelievePTTUtilityposestoourbusiness.In order to expand our operations under the IPP program we had to bid for, and be awarded, concessions for newelectricity generating facilities.While ourbid for new660MW IPPplant submitted inOctober2007pursuant to IPPSolicitation2007-01hasbeenshortlistedaspreferredbid,westillneedtoconcludePPAnegotiations,obtainnecessarylicensesandraisefundingforsuchinvestments.WecannotassureyouthatwewouldbeabletosuccessfullyachievethatnorthatwewouldbeabletosuccessfullybidforanyotherfutureelectricitygenerationprojectsinThailand.Thesefactorscouldmateriallylimitourabilitytoexpandourbusiness,adverselyaffecttheviabilityofcurrentexpansionprojects,andeitherofthesefactorsoranygeneralinabilitybyustocompetesuccessfullywithcurrentorfutureindustryparticipantscouldhaveanadverseeffectonourbusiness,resultsofoperations,financialsituationandprospects.

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We are subject to significant contractual risks under our SPP power purchase agreements

EGATisour largestandmost importantcustomer,andsalestoEGATfromourSPPsaccountedfor28.2percentofourtotal revenues in2007 (see section “—We are highly dependent onEGAT”). EGAT is the sole purchaser ofwholesaleelectricity inThailand.Due inpart to the foregoing,ourSPPpowerpurchaseagreementswithEGATarestandard formcontracts that we were not given an opportunity to negotiate. This means that these contracts are not tailored to ourspecificoperatingcircumstancesandcontainanumberofambiguousprovisions.CertainofthetermsofourSPPpowerpurchaseagreementsthatwebelievepresentriskstoourbusinessareasfollows: • incontrasttoourIPPpowerpurchaseagreement,ourSPPpowerpurchaseagreementsonlyprovideforverylimited instances in which penalties or liquidated damages are EGAT’s principal remedy for our failure to perform our contractualobligations.Thismeansthatanysuchfailuresbyusaremorelikelytoconstituteeventsofdefaultunder ourSPPpowerpurchaseagreementsand,uponexpirationofrelevantcureperiods,giveEGATtherighttoterminate theseagreements; • apowerpurchaseagreementmaybeterminatedbeforetheendofitstermduetothedefaultofeitherpartyandour onlyremedymaybetobringaclaiminarbitrationandprovedamages; • althoughthepowerpurchaseagreementsdonotincludeliquidateddamagesprovisions,penaltiesareimposedinthe formofreducedcapacityorenergypaymentsfromEGATorrefundsbyuswhere(i)wesupplylessthanthecontracted capacity,(ii)weprovideelectricityforlessthan7008hoursinayear,(iii)thecogenerationefficiencyislessthan 45%or(iv)thermalenergyaccountsforlessthan10percentofourtotalenergysold; • ifaforcemajeureeventaffectingEGAToragovernmentalforcemajeureevent(asdefinedinthepowerpurchase agreement)preventsus fromsupplyingelectricity toEGAT,EGATwillcontinuetomake itscapacitypayment (the paymentthatisdesignedtoallowustorecoverourfixedcostsforconstructingandoperatingthepowergenerating facilityoverthelifeofthecontract)tousforonlyuptosixmonths.Inaddition,failurebyPTTtodelivergastousis notconsideredtobeagovernmentalforcemajeureeventforthesepurposes,sointheeventofaPTTsupplyfailure EGATwillonlypayusforcapacityactuallymadeavailableandenergyactuallydelivered;and • ourSPPpowerpurchaseagreementswithEGATcontainonlyageneralcommitmentforbothpartiestonegotiatein goodfaithtoamendtoourcontractualarrangementinresponsetoanyadversechangeinlaw,includingchangesin environmentalstandards,whichprovidesuswithonlylimitedchange-in-lawprotection.Thisisparticularlyrelevant ifnewlawsweretoimposemorestringentenvironmentalconditionsonourexistingfacilities,whichcouldrequire significantopexandcapex.These contractual risks could have an adverse effect on our business, results of operations, financial situation andprospects.

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We operate in a highly regulated industry that is subject to change

TheregulatoryframeworkapplicabletoelectricitygeneratingcompaniesinThailandhasundergonesignificantstructuralchangesinthepastandmayundergosignificantchangesinthefuture.Inaddition,therehavebeenavarietyofproposalsforreformoftheThaielectricityindustryinthepastwhich,oncemade,havesubsequentlybeendelayed,cancelled,orsignificantlymodifiedpriortotheirimplementation.Thailandhasbeen consideringderegulation of the electricity industry for a number of years, includingprivatization ofEGAT,MEAandPEA.EGAThasbeguntheprocessofprivatization,butthisprocesshasbeenputonhold.However,theEGATpowerpurchaseagreementsforourSPPsdonotcontainanydealingwiththepotentialprivatizationofEGATortherestructuringoftheelectricitysector.Weareunabletopredictwhateffectderegulationorprivatizationwouldhaveonourcontractual arrangements and on the electricity sector in Thailand in general. If suchderegulationwere result in theabolitionofthePEAprice,forexample,whichisthereferencepricethatweusetopriceourelectricitysalestoindustrialcustomers,wewouldprobablyhavetoattempttorenegotiatethepricingstructurewithourindustrialcustomers,whichwemaynotbeabletodoonreasonablecommercialtermsoratall.BecauseweoperateanumberofSPPs(andourcompaniesaccountforamaterialportionofallSPPelectricitysoldtoEGAT), which are higher-cost wholesale electricity generators compared with IPPs and many of EGAT’s generatingfacilities, we are exposed to regulatory changes that seek to increase generating efficiency or to penalize high-costgenerating facilities. This could take the form of changes in law and many of our key sales contracts do not containspecificmechanismsforcompensatingusintheeventofadversechangesinlaw.Tofacilitatecontinuedreform,theEnergyIndustryActwaspublishedonthe10thofDecember2007.UnderthisAct,anew independent regulatory body, the Energy Regulatory Board (“ERB”), will be formed in order to regulate both theelectricityandnaturalgassupplyindustriesandtoensurefaircompetition.Thisagency’skeyresponsibilitieswillinclude: • Primarilyregulatingtheelectricitysupplyindustryandthegassupplyindustry(GSI); • Regulatingtariffs,standardsandservicequality; • Ensuringcompetitionandpreventingabuseofmonopolypower; • Protectingconsumersanddealingwithconsumercomplaints; • RecommendtotheNationalEnergyPolicyCouncilthepolicyontheenergyprocurementandthepolicyondiversification offuelsourcesandtypesforpowergenerationtoensureefficiencyandsecurityoftheelectricityindustry;and • Considerthepowerdevelopmentplan,theinvestmentplansoftheelectricityindustry,thenaturalgasprocurement planandtheenergynetworksystemexpansionplan.These or other regulatory or structural changes affecting the Thai electricity industry could require us to significantlychange theway thatweoperateourbusinessandcouldhaveanadverseeffectonourbusiness, resultsof operations,financialsituationandprospects.

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We have had significant disputes with EGAT in the past

EGATisourlargestandmostimportantcustomer.WehavebeeninvolvedinanumberofsignificantdisputeswithEGATinthepast, includingdisputes relating to important components of ourbusiness operations.Most significantly, in2004,EGATchallengedthe interconnectionofourvariouscogenerationfacilities,whichwebelieve iscentral to thereliabilityandqualityofourservice,asaviolationofourpowerpurchaseagreementsandchallengedthecomplianceofourGlowSPP 2/SPP 3 hybrid plant with applicable operating efficiency criteria established under Thailand’s SPP regulations.Although we have resolved these disputes in a satisfactory manner and amended our relevant EGAT power purchaseagreements to reflectouragreementswithEGAT,weagreedaspartof thesettlement tomake financialconcessions toEGAT(althoughwedonotconsidertheamountsoftheseconcessionstobematerial).Wecannotassureyouthatwewillnot become involved in further disputeswithEGAT, or that ifwe do,wewill be able to resolve any such disputes onsatisfactoryterms.Inthepast,wehavebeeninvolvedindiscussionswithEGATregardingimportantaspectsofourbusiness,includingthereferenceindexforcoalpricesthatwearepermittedtopassontoEGATunderourpowerpurchaseagreementsandthesynchronizationofournon-SPPgeneratingunitstotheEGATgrid.Althoughwedonotcharacterizetheseasdisputes,webelieve that, because of the structure of the Thai electricity supply industry and the nature of our power purchaseagreements,wewillprobablycontinuetomaintainadialoguewithEGATtoresolvetheseandsimilartypesof issuesinordertocontinuetoclarifycertainaspectsofourcontractualrelationship.Thereisthepotentialfordisputestoariseinconnectionwithanysuchissuesorpointsofdiscussion.BecauseEGATisourmostimportantcustomeranddisputeswithEGATmay involve someofourmost importantcontracts,anydisputes thatwemayhavewithEGAT in the futuremayrequire us to materially change the way in which we operate our business and could have an adverse effect on ourbusiness,resultsofoperations,financialsituationandprospects.Our business operations are dependent on the availability of fuel

Ourbusinessisdependentontheavailabilityoffuel,inparticularnaturalgasandcoal.In2007,purchasesofnaturalgasaccountedfor76.0percentofourcostofsalesandpurchasesofcoalaccountedfor5.3percentofourtotalcostofsales.Shortagesinnaturalgasorcoal,oraninabilityofoursupplierstoprovidethesefuelstous,couldpreventsomeorallofour facilities frombeing able to generate electricity and steam,which could prevent us from fulfilling our contractualobligations.Wehaveenteredintolong-termnaturalgassupplyagreementswithPTT.BecauseofthestructureoftheThaifuelsupplyindustry,PTTcurrentlyoperatesasaneffectivemonopolyandistheonlyentitythatisabletosupplyuswithnaturalgastoallowustooperateourbusiness.IntheeventthatPTTfailstosupplyuswithadequatequantitiesofnaturalgasunderour gas supply agreements, we could face significant disruptions to our business. Although there is a compensationprovisioninthegassupplyagreementsbetweenourSPPsandPTTwhichrequirePTTtocompensateusforitsinabilitytodeliver contracted quantities of natural gas to us, this compensation only extends to the natural gas that we use toproduceelectricitytoselltoEGATandnottoourindustrialcustomers.Mostofourgas-firedfacilitiesaredesignedtorunondieselfuelasanalternativefuelsource,butwecouldincursignificantcostsandoperatinginefficienciesinswitchingusingdieselfuel.Moreover,ourcogenerationfacilitiesmaynotbeabletooperateondieselfuelforsustainedperiodsoftime,as,whenoperatingondieselfuel,weconsumedieselfuelfasterthanweareabletore-fillourdieselfuelstoragetanks.There is a risk of natural gas supply disruption resulting from defects in or the requirement for maintenance of thepipeline,overwhichwehavenocontrol.Thecurrent limitationson thesupplyofnaturalgas to theareas inwhichweoperate,oranydisruptioninthesupplyofnaturalgas,couldhaveanadverseeffectonourbusiness,resultsofoperations,financialsituationandprospects.

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Wehaveenteredintoalong-termcoalsupplyagreementwithBanpuInternationalLimited(“Banpu”)forsupplyofcoaltoour Glow SPP 2/ SPP 3 plant, which is our only coal-fired facility. Our current policy states that we will sourceapproximately50-53percentofourcoalrequirementsfromBanpu,andapproximately40-45percentundermediumtermcontractswithotherinternationalsupplier(s)andtheremainderthroughspotsales.We are highly dependent on PTT Asdiscussedinthesection“—Ourbusinessoperationsaredependentontheavailabilityoffuel”,werelyheavilyonPTTforthesupplyofnaturalgastoouroperatingfacilities.Purchasesofnaturalgas,whichwerealmostallpurchasedfromPTT,accountedforapproximately76.0percentofourtotalcostofsalesin2007.Inadditiontobeingakeysupplier,PTThasanequityinterestinPTTChemandPTTUtility,twoofourprincipalcompetitors(asdiscussedaboveinthesection“—We face significant competition”). PTT also has an equity interest in a number of our industrial customers (mostsignificantlyPTTChemical,previouslyknownas“ThaiOlefinsPlc”andPTTAromaticsandRefining,previouslyknownasAromatics (Thailand) Plc). Sales to these two customers accounted for 11.5 percent of our total electricity sold toindustrial customers (in MWh), 28.6 percent of our total revenue from sales of steam and 6.5 percent of our totalrevenuesin2007.Seesection“—Wefacesignificantcompetition”.IfourcompetitivepositionwithPTTadverselyaffectsitswillingnesstoenterintonewagreementstosupplynaturalgastous,orthetermsonwhichitwilldoso,orifourrelationshipwithPTTdeterioratesforanyotherreason,thiscouldhaveanadverseeffectonourbusiness,resultsofoperations,financialsituationandprospects.Environmental Opposition to expanding Map Ta Phut SomeNGO’s,localcommunitiesandpoliticiansbelievetheindustrialexpansionofthepetrochemicalcomplexinMapTaPhutisnotsustainablefromahealthandenvironmentalpointofview.Severalmeasuresrestrictingenvironmentalpermitshavebeenmade,including: 1) Nonewallocationofemissionquota 2) Nonewemissionsunlessemissionsfromexistingplantsarereduced.TheremustbeareductionofNOXand SO2emissionsfromtheexistingfacilities,sothatthenewprojectcanbeallowed.Addedairemissionsrateshall notbemorethan80percentofreducedairemission.Therecouldalsobenewmore stringent emissions standardsapplicable inMapTaPhut orThailandonexistingpowerplantsornewpowerplants.TherecouldalsobeadecisiontodevelopthepetrochemicalbusinessfurtherintheSouthernSeaboard.Thiscouldhaveanadverseeffectonthebusiness,resultsofoperation,financialsituationandprospects.

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We are exposed to foreign exchange risk Weareexposed to foreignexchange risk inanumberof respects.Manyofouroperatingcostsaredenominated inUSdollars and other currencies. Most of our US dollar-denominated operating costs can be serviced by US dollar-linkedincome.However,wealsopurchasepartsandequipmentforourplantsinUSdollars,andGlowIPPincursasignificantamount ofSwiss franc-denominatedcosts relating tomaintenance.Moreover, our coal andcoal freight costs, althoughlargelydenominatedinBaht,areUSdollar-basedandwecannotfullypassthefluctuationsinthesecosts(includingasaresultofcurrencyfluctuations)throughtoourcustomers.Further,whileourrevenuesarepartiallylinkedtotheUSdollar,asignificantamountofourindebtednessisBaht-denominated.WehaveinthepasttargetedasubstantialdegreeofUSdollarcontentorlinkageincashflows(andthusnormalizednetearnings)availabletodistributetoshareholdersand,ifwecontinue todoso,anyappreciationof theBahtcompared to theUSdollarwould reduce theBahtamountofdividendpaymentstoourshareholders.Forthesereasons,significantfluctuationsinexchangeratescouldhaveanadverseeffectonourbusiness,resultsofoperations,financialsituationandprospects.

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Sustainable business relations

It is our philosophy to develop and maintain a long-term relationship and commitment to all our business partners including our suppliers, customers and shareholders through loyal, honest and sincere conduct.

This means we have to be honest sharing our expectations and our constraints. The dialogue with our business partners is always ongoing. Contracts with our customers are to be construed and applied in a reasonable and honest manner, not only by looking at the consequences of the grammatical meaning of the sentences.

This honest and sincere dialogue with our business partners is a matter of professionalism, care and integrity.

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Sustainable business relations

It is our philosophy to develop and maintain a long-term relationship and commitment to all our business partners including our suppliers, customers and shareholders through loyal, honest and sincere conduct.

This means we have to be honest sharing our expectations and our constraints. The dialogue with our business partners is always ongoing. Contracts with our customers are to be construed and applied in a reasonable and honest manner, not only by looking at the consequences of the grammatical meaning of the sentences.

This honest and sincere dialogue with our business partners is a matter of professionalism, care and integrity.

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Shareholding and Management Structure

We create value for our shareholders and customers through the commitment and knowledge of our employees. We seek to implement best practices through human resource, information systems, HR policies, and standardized procedures. Our major shareholder provides support and guidance in developing best practices for our company.

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Shareholders

ThefollowingtablesetsoutourmajorshareholdersasatDecember31,2007.

Shareholding and Management Structure

Management Structure

Major shareholders # Shares %

1. SUEZ-Energy(Thailand)Co.,Ltd. 645,259,773 44.11

2. SUEZ-TractebelEnergyHoldingsCooperatieveU.A.(1) 365,716,260 25.00

3. StateStreetBankandTrustCompanyforLondon 65,115,149 4.45

4. NortrustNomineesLtd. 34,180,000 2.34

5. LittledownNomineesLimited7 22,544,454 1.54

6. HSBC(Singapore)NomineesPteLtd. 18,656,717 1.28

7. ChaseNomineesLimited32 17,200,100 1.18

8. LittledownNomineesLimited 14,640,000 1.00

9. Somers(U.K)Limited 12,700,000 0.87

10. StateStreetBankandTrustCompany 12,072,343 0.83

11. Others 254,780,239 17.42

1,462,865,035 100.00

Note: (1)SUEZ-TractebelEnergyHoldingsCooperatieveU.A.isthewhollyownedsubsidiaryofSUEZ-TractebelS.A.

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GlowEnergyPublicCompanyLimited

BoardofDirectors

ChiefExecutiveOfficerAuditCommittee

InternalAudit

ExecutiveVicePresidentand

ChiefFinancialOfficer

VicePresident-HumanResources&

Administration

ExecutiveVicePresidentand

ChiefCommercialOfficer

SeniorVicePresidentand

ChiefFinancialController

VicePresident-Accounting

VicePresident-InformationTechnology

VicePresident-Budgeting&BusinessControlling

VicePresident-Finance&InvestorRelations

VicePresident-Compliance&Insurance

VicePresident-Marketing&BusinessPlanning

VicePresident-IndustrialSales

VicePresident-IndustrialCustomerRelations

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ExecutiveVicePresidentandChiefProjectsDevelopment&

IPPBusiness

ExecutiveVicePresidentand

ChiefOperatingOfficer

SeniorVicePresident-Construction&Technical

Management

SeniorVicePresident-Engineering

SeniorVicePresident-IPPBusiness&

GovernmentAffairs

VicePresident-Government&PublicAffairs

SeniorVicePresident-OperationsSupportServices

VicePresident-SupplyChainManagement

VicePresident-AssetOptimization

SeniorVicePresident-RayongFacilities

Management

GIPPFacilityManager

PlantManager-GlowEnergySite(Phase2)

PlantManager-GlowSPP2,GlowSPP3,Glow

EnergySite(Phase3&4)

PlantManager-GlowSPP1&GlowDeminWaterSite

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Thecompany’smanagementstructureiscomprisedoftheBoardofDirectors,theAuditCommittee,andtheManagementTeam

1. Board of Directors

1. Mr.GuyRichelle ChairmanoftheBoard

2. Mr.PeterValereGermainTermote DirectorandChiefExecutiveOfficer

3. Mr.KovitPoshyananda IndependentDirectorandAuditCommittee

4. Mr.VitthayaVejjajiva IndependentDirectorandAuditCommittee

5. Ms.SupapunRuttanaporn IndependentDirectorandAuditCommittee

6. Mr.DirkAchielMarcBeeuwsaert Director

7. Mr.GuidoGeeraerts Director

8. Mr.JohanDeSaeger Director

9. Mr.RajitNanda Director

10. Mr.PhilipDeCnudde Director

11. Mr.AnutChatikavanij Director

12. Mr.BrendanG.H.Wauters Director Mr.SiroteVichayabhaiistheCompany’ssecretariat. Authorized Directors Mr.AnutChatikavanijorMr.DirkAchielMarcBeeuwsaertorMr.GuidoGeeraertsorMr.PeterValereGermainTermoteor Mr.PhilipDeCnuddeorMr.BrendanG.H.WautersorMr.JohanDeSaegerorMr.GuyRichelleorMr.RajitNanda,2 ofthese9directorstosignjointlyandaffixedCompany’sseal. Scope of Authority and Responsibilities of the Board of Directors • TheCompany’sboardofdirectorsmustperformitsdutiesinaccordancewithlaws,objectivesandarticlesofassociation oftheCompanyaswellasinaccordancewiththeresolutionsofshareholders’meetings.Theboardofdirectors mayempoweroneormoredirectorsoranypersontoactonitsbehalf. • TheboardofdirectorshasthepowertomakedecisionsandoverseetheoperationsoftheCompany, except in the followingcaseswhichrequireapprovalfromtheshareholders’meetingfirst. • anyactivitythatlawsand/orarticlesofassociationoftheCompanyhasspecifiedthatrequireapprovalfromthe shareholders’meetingfirst.

Name Position

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• anyundertakingofanyrelatedtransactionaccordingtotheregulationsoftheStockExchangeofThailand. • anyacquisitionanddisposaloftheassetsaccordingtotheregulationsoftheStockExchangeofThailand. • Theboardofdirectorshasthepowertodeclarepaymentofinterimdividendsfromtimetotimeifitdeemsthatthe Companyhasenoughprofittodoso.2. Management Team TheManagementTeamiscomprisedof30personsasfollows:

1. Mr. PeterValereGermainTermote ChiefExecutiveOfficer

2. Mr. JohnA.Guidy ExecutiveVicePresidentandChiefOperatingOfficer

(January-November2007)

3. Ms.SripraphaSumruatruamphol ExecutiveVicePresidentandChiefCommercialOfficer

4. Mr. EsaHeiskanen ExecutiveVicePresidentandChiefProjectsDevelopment

&IPPBusiness

5. Mr. PajongwitPongsivapai ExecutiveVicePresidentandChiefOperatingOfficer

(November2007-Present)

6 Mr. SuthiwongKongsiri ExecutiveVicePresidentandChiefFinancialOfficer

7. Ms.NatnichaKulcharattham SeniorVicePresident-HumanResources&Administration

(ResignedJanuary1,2008)

8. Mr. SvendErikJensen SeniorVicePresident-Construction&TechnicalManagement

9. Mr. KanitThangpetch SeniorVicePresident-RayongFacilitiesManagement

10.Mr. LouisStephenHolub SeniorVicePresident-OperationsSupportServices

11. Mr. MichaelW.Reiff SeniorVicePresidentandChiefFinancialController

12.Mr. WisitSrinuntawong SeniorVicePresident-Engineering

13.Mr. NarongchaiVisutrachai SeniorVicePresident-IPPBusiness&GovernmentAffairs

14.Ms.ChamaipornSoonthorntasanapong VicePresident-Compliance&Insurance

15.Ms.SirichanChotchaisathit VicePresident-IndustrialSales

16.Mr. PrateepPhuthamrugsa VicePresident-SupplyChainManagement

17.Mr. SomchaiKlinsuwanmalee VicePresident-Government&PublicAffairs

18.Ms.MantanaKunakorn VicePresident-HumanResources&Administration

19.Mr. RenaudLouisAlbertPilleul VicePresident-IndustrialCustomerRelations

20.Mr. JirasekPoomchai VicePresident-Logistics&FuelManagement

21.Ms.SuttasineePengsupaya VicePresident-Accounting

22.Mr. ChaiwutRattanapornsinchai VicePresident-InformationTechnology

23.Ms.UnchanaKittipiyakul VicePresident-Budgeting&BusinessControlling

24.Dr. SomgiatDekrajangpetch VicePresident-AssetOptimization

25.Mr. SiroteVichayabhai VicePresident-Finance&InvestorRelations

Name Position

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26.Mr.AkarinPrathuangsit VicePresident-Marketing&BusinessPlanning

27.Mr.AnutarachaiNatalang PlantManager-GlowEnergySite(Phase2)

28.Mr.ApichartJamjuntr PlantManager-GlowSPP2/SPP3,GlowEverySite(Phase3&4)

29.Mr.ApidechSiriphornoppakhun PlantManager-GlowSPP1andGlowDeminWaterSite

30.Mr.SuratchaiBangluang FacilityManager-GlowIPP

Scope of Authority and Responsibilities of the CEO TheCEOshallhavetheauthoritytoperformthenormalbusinessoperationsoftheCompanyexceptthefollowingmatters whichshallbeconsideredandapprovedbytheBoardofDirectorsorrecommendedtotheShareholders’Meetingfor itsapproval,asthecasemaybe: • Authorizationofinternalpowerofattorneys; • AmendmentoftheCompany’sArticlesofAssociation; • Merger,splituporanymodificationoftheformoftheCompany; • DissolutionoftheCompany; • Increase,decreaseortransferoftheregisteredcapitaloftheCompany; • TakingofalienoranyothersecurityontheassetsoftheCompany; • Anymaterialchangetothemainagreements,i.e.PowerPurchaseAgreementwithEGAT,GasSupplyAgreement withPTT,CoalSupplyAgreementwithBanpuMineralsCo.,Ltd.andEPCContracts; • Negotiationandexecutionofdocumentsinrelationtotheopeningofcreditfacilitieswithbanks,foranamount exceedingtheamountmentionedinthedailymanagementpowersgrantedbytheBoardofDirectorstotheCEO; • Commencementordiscontinuanceofanybusiness; • RemovalandappointmentofCEO; • Approvaloflong-termstrategicplan;and • Approvalofannualbudget.

Name Position

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Details of The Board of Directors 1. Mr. Guy Richelle (52) Education : MasterDegreeinNuclearEngineering,UniversiteLiegeinBelgium : MasterDegreeinBusinessAdministration,UniversityofLouvain-la-Neuve inBelgium Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • ChairmanoftheBoardandDirector/GlowEnergyPublicCo.,Ltd • ChairmanoftheBoard/GlowGroup • ChairmanoftheBoardandDirector/SUEZEnergyAsia&SUEZEnergy (Thailand) • RegionalManager/SUEZEnergyMiddleEast-Asia&Africa • Director/PTTNaturalGasDistributionCo.,Ltd.(PTTNGD) • Director/HuayHoPowerCompany(Laos) • Director/HIDDPowerCompanyLimited • Director/SoharGlobalContracting&ConstructionCompanyLimited(Oman) • Director/ZhenjiangPRC(China) • Director/UnitedPowerCompanySAOG/SoharPowerDevelopmentCy (Oman) • Director/BayminEnerigAS(Turkey) • Director/TotalTractabelEmiratesPowerCompany/TotalTractebel EmiratesEPCCy/TotalTratebelEmiratesO&MCompanyS.A.(France) • Director/SUEZEnergyIndia(India) • Director/BrightbeamPteLimited(Malaysia) • Director/ElyoSouthEastAsiaPteLimited(Malaysia) • Director/ElyoPteLimited(Malaysia) . : 2001-2006 • ChiefExecutiveOfficer/TractebelEGIMiddleEast(Dubai) 2. Mr. Peter Valere Germain Termote (43) Education : MasterDegreefromHarvardUniversitywithfullscholarship(Tuition&COL) : MasterDegreefromUniversityofParis1-Sorbonnewithfullscholarship (Tuition&COL) : BachelorDegreeinLaw(HighestHonors)1stofClassAward,UniversityofBrussels Sharholding Proportion (Percent) : 223,200shares(0.02%) Family Relation with Management : None 5 years past experience : Present • DirectorandChiefExecutiveOfficer/GlowEnergyPublicCo.,Ltd. • DirectorandChiefExecutiveOfficer/GlowGroup

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3. Mr. Kovit Poshyananda (72) Education : HonoraryDoctorate(Economics),ChulalongkornUniversity : NationalDefenseCollege : M.A.,Ph.D.fromCornellUniversity : B.A.(Honors)fromCambridgeUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • IndependentDirector&AuditCommittee/GlowEnergyPublicCo.,Ltd. • IndependentDirector/GlowGroup(ExceptGlowIPP3Co.,Ltd. andGHECO-OneCo.,Ltd.) • ChairmanoftheBoardofDirectorandtheAuditCommittee/ SansiriPublicCo.,Ltd. • DirectorandChairmanoftheAuditCommittee/ FurukawaMetal(Thailand)Co.,Ltd. • DirectorandChairmanoftheAuditCommittee/ Shangri-LaHotelPublicCo.,Ltd. • Director/BangkokBankPublicCo.,Ltd. • Director/OfficeoftheCouncilofState • ChairmanoftheAppellateCommittee/ThaiSecuritiesandExchange Commission(SEC) 4 Mr. Vitthaya Vejjajiva (71) Education : MasterDegreeofLaws,HarvardUniversity,USA : BachelorDegreeofLaws,Gray’s–Inn,England : RoleofChairmanProgramClass2/2001,ThaiInstituteofDirectors Association(IOD) Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • IndependentDirector&AuditCommittee/GlowEnergyPublicCo.,Ltd. • IndependentDirector/GlowGroup(ExceptGlowIPP3Co.,Ltd. andGHECO-OneCo.,Ltd.) • President/NationalCommitteeUnitedWorldColleges • President/K-Line(Thailand)Co.,Ltd. • President/Kawasaki-DowaCompanyLimited

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5. Ms. Supapan Ruttanaporn (66) Education : MBA(Accounting),MichiganStateUniversity,USA : BachelorofAccounting(SecondHonor),ChulalongkornUniversity : CertificateinDirectorCertificationProgram(DCP),Class15/2002, ThaiInstituteofDirectorsAssociation(IOD) Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • IndependentDirector&AuditCommittee/GlowEnergyPublicCo.,Ltd. • IndependentDirector/GlowGroup(ExceptGlowIPP3Co.,Ltd. andGHECO-OneCo.,Ltd.) • IndependentDirector&AuditCommittee/ DeltaElectronics(Thailand)PublicCo.,Ltd. • MemberoftheEthicCommittee/FederationofAccountingProfession : Past • Chairperson/ThaiAccountingAssociation • IndependentDirector&AuditCommittee/ ChiangMaiFrozenFoodPublicCo.,Ltd. • MemberofDepartmentofAccountancyCommittee/ FacultyofCommerceandAccountancy,ChulalongkornUniversity • MemberofthesubcommitteeontheAutomaticAdjustmentMechanism Monitoring/NationalEnergyPolicyOfficeofThailand • MemberoftheAccountingandFinanceSpecialistCommittee/ OfficeofCivilServiceCommission 6. Mr. Dirk Achiel Marc Beeuwsaert (59) Education : GeneralManagementProgrammeCedep,Fontainebleau : BachelorDegreeinElectricalandMechanicalEngineering,UniversityofGhent Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • Director/GlowEnergyPublicCo.,Ltd. • Director/GlowGroup(ExceptGlowIPP3Co.,Ltd.andGHECO-OneCo.,Ltd.) • ChiefExecutiveOfficer/TractebelElectricityandGasInternational • Director/TractebelEnergia(Brazil) • Director/TractebelInc.(USA)

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7. Mr. Guido Geeraerts (54) Education : MasterDegreeinOrganizationalSociology,GentUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • Director/GlowEnergyPublicCo.,Ltd. • Director/GlowGroup(ExceptGlowIPP3Co.,Ltd.andGHECO-OneCo.,Ltd.) • SeniorVicePresident-TradingandSales/ElectricityandGasInternational • DepartmentofOrganizationalStudies/ElectrabelN.V.(Belgium) • DepartmentofOrganizationandDevelopment/ElectrabelN.V.(Belgium) • Director/TractebelEnergyMarketingInc. • Director/TractebelEnergyServicesInc. • Director/ElectrabelNordicAS 8. Mr. Johan De Saeger (40) Education : CommercialEnergineering,CatholicUniversityofLouvain,Belgium : MasterDegreeinBusinessAdministration,CornellUniversity,theUnited StatesofAmerica Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • Director/GlowEnergyPublicCo.,Ltd. • Director/GlowGroup • ExecutiveVicePresident–BusinessDevelopment/ SUEZEnergyInternational(JohannesburgandThailand) • Director/ZhenjiangHongsunThermalPowerCYLimited • Director/SUEZEnergyIndiaPrivateCompany • Director/HouyHoPowerCompanyLimited • Director/ElyoPTELimited • Director/SUEZEnergySouthernAfrica(PTY)Ltd. : 2002-2006 • ExecutiveVicePresidentCountryManager/SUEZEnergyInternational : 2000-2003 • SeniorVicePresident-Strategy&PortfolioManagement/ TractebelElectricity&GasInternational 9. Mr. Rajit Nanda (37) Education : MasterDegreeofBusinessAdministration,UtkalUniversity,India : BachelorDegreeofCommerce,UtkalUniversity,India Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • Director/GlowEnergyPublicCo.,Ltd. • Director/GlowGroup(ExceptGlowIPP3Co.,Ltd.andGHECO-OneCo.,Ltd.) • ChiefExecutiveOfficer/SUEZEnergyInternationalAsia,MiddleEast&Africa • Director/TractebelParts&RepairsFZE : 2000-2006 • Director/SUEZGroup

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10. Mr. Philip De Cnudde (47) Education : MasterDegreeinElectricalEngineeringfromGhentUniversity : OperationalManagementinfurtherDegreefromGhentUniversity : GeneralManagementProgrammeCEDEPatINSEAD,Fontainebleau Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • Director/GlowEnergyPublicCo.,Ltd. • Director/GlowGroup(ExpertGlowIPP3Co.,Ltd.andGHECO-OneCo.,Ltd.) • ChiefBusinessController/SUEZEnergyInternational 11. Mr. Anut Chatikavanij (41) Education : BachelorDegreefromLehighUniversity,Pennsylvania,USA : CertificateinDirectorAccreditationProgram(DAP),Class38/2005, ThaiInstituteofDirectorsAssociation(IOD) Sharholding Proportion (Percent) : 135,200shares(0.01%) Family Relation with Management : RelativeofMs.SripraphaSumruatruamphol(Management) 5 years past experience : Present • Director/GlowEnergyPublicCo.,Ltd. • Director/GlowGroup • Director/LeadingEdgeGlofCo.,Ltd. • Director/HunterMutaulFundCo.,Ltd. • Director/OperationPowerServicesCo.,Ltd. 12. Mr. Brendan G.H. Wauters (38) Education : MasterDegreeinBusinessAdministration,UniversityofBrussels : CommercialEngineeringDegreeofUniversityofBrussels(VUB) : CertificateinDirectorAccreditationProgram(DAP),Class57/2006, ThaiInstituteofDirectorsAssociation(IOD) Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • Director/GlowEnergyPublicCo.,Ltd. • Director/GlowGroup(ExceptGlowIPP3Co.,Ltd.andGHECO-OneCo.,Ltd.) • ChiefFinancialOfficer,Corporate&ProjectFinanceDepartment/ TractebelAsia

Remark :GlowGroupaspermentioninthisattachmentis

1)GlowSPP2Co.,Ltd. 6)GlowDeminWaterCo.,Ltd.

2)GlowSPP3Co.,Ltd. 7) GlowIPP2HoldingCo.,Ltd.

3)GlowCo.,Ltd. 8)GlowIPP3Co.,Ltd.

4)GlowSPP1Co.,Ltd. 9)GHECO-OneCo.,Ltd.

5)GlowIPPCo.,Ltd.

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Details of Management Team 1. Mr. Peter Valere Germain Termote (SeedescriptionattheBoardofDirectorprofileno.2) 2. Mr. John A. Guidry (59) Education : MasterDegreeinBusinessAdministration(InternationalBusiness), UniversityofHouston,Texas,USA : BachelorDegreeinEngineeringScience–NuclearUniversityofTexas,USA Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : January - November 2007 • ExecutiveVicePresidentandChiefOperatingOfficer/ GlowEnergyPublicCo.,Ltd. • ExecutiveVicePresidentandChiefOperatingOfficer/GlowGroup 3. Ms. Sriprapha Sumruatruamphol (44) Education : MasterofBusinessAdministration,SyracuseUniversity,NewYork,USA : BachelorDegreeinScience(ChemicalEngineering),MichiganTechnological University,Michigan,USA Sharholding Proportion (Percent) : 30,000shares(0.00%) Family Relation with Management : RelativeofMr.AnutChatikavanij(Director) 5 years past experience : Present • ExecutiveVicePresidentandChiefCommercialOfficer/ GlowEnergyPublicCo.,Ltd. • ExecutiveVicePresidentandChiefCommercialOfficer/GlowGroup • Director/EasternFluidTransportCo.,Ltd • ViceChairmanandDirector/AssociationofPrivatePowerProducers 4. Mr. Esa Heiskanen (41) Education : MasterDegreeinScience(MechanicalEngineering),HelsinkiUniversityof Technology,Finland Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • ExecutiveVicePresidentandChiefProjectsDevelopment&IPPBusiness/ GlowEnergyPublicCo.,Ltd. • ExecutiveVicePresidentandChiefProjectsDevelopment&IPPBusiness/ GlowGroup : 2001-2004 • SeniorBusinessDeveloper/TractebelAsia,BangkokOffice

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5. Mr. Pajongwit Pongsivapai (39) Education : MasterDegreeofScienceinChemicalEngineering,OregonStateUniversity,USA : BachelorDegreeinChemicalEngineering,ChulalongkornUniversity Sharholding Proportion (Percent) : 8,000Shares(0.00%) Family Relation with Management : None 5 years past experience : Present • ExecutiveVicePresidentandChiefOperatingOfficer/ GlowEnergyPublicCo.,Ltd. • ExecutiveVicePresidentandChiefOperatingOfficer/GlowGroup : 2006-2007 • DeputyChiefOperatingOfficerandSeniorVicePresident-Operations/ GlowEnergyPublicCo.,Ltd. • DeputyChiefOperatingOfficerandSeniorVicePresident-Operations/ GlowGroup : 2003-2004 • OperationDirector/S.T.P.&I.PublicCo.,Ltd. : 1996-2003 • SeniorVicePresident–SpecialProject/GlowGroup6. Mr. Suthiwong Kongsiri (37) Education : MasterDegreeinBusinessAdministration,UniversityofNorthCarolina, ChapelHill : BachelorDegreeinFinance&Banking,AssumptionUniversity,Bangkok Sharholding Proportion (Percent) : 50,000Shares(0.00%) Family Relation with Management : None 5 years past experience : Present • ChiefFinancialOfficerandExecutiveVicePresident/ GlowEnergyPublicCo.,Ltd. • ChiefFinancialOfficerandExecutiveVicePresident/GlowGroup : 2003-2004 • SeniorVicePresidentandDeputyChiefFinancialOfficer/ GlowEnergyPublicCo.,Ltd. • SeniorVicePresidentandDeputyChiefFinancialOfficer/GlowGroup 7. Ms. Natnicha Kulcharattham (53) Education : MasterDegreeinPublicAdministration,NationalInstituteofDevelopment (NIDA) : BachelorDegreeinPublicRelationandCommunicationArts, ChulalongkornUnivesity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present ResignedfromtheCompanyonJanuary1,2008 : 2005 - 2007 •SeniorVicePresident-HumanResourcesandAdministration/ GlowEnergyPublicCo.,Ltd. • SeniorVicePresident-HumanResourcesandAdministration/GlowGroup : 1997 -2005 • HumanResourcesManager/BlueScopeSteel(Thailand)CompanyLimited

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8. Mr. Svend Erik Jensen (50) Education : MasterDegreeinBusinessAdministration,Sydney,Australia : BachelorDegreeinMechanicalEngineering,Denmark Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • SeniorVicePresident-Construction&TechnicalManagement/ GlowEnergyPublicCo.,Ltd. • SeniorVicePresident-Construction&TechnicalManagement/ GlowGroup : 2001-2003 • ProjectManager/GlowEnergyPublicCo.,Ltd. • ProjectManager/GlowSPP3Co.,Ltd. 9. Mr. Kanit Thangpetch (50) Education : MasterDegreeinBusinessAdministration,PathumthaniUniversity : BachelorDegreeinEngineering(Electrical),KingMongkutInstituteof Technology(Ladkrabang),Bangkok Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • SeniorVicePresident-RayongFacilitiesManagement/ GlowEnergyPublicCo.,Ltd. • SeniorVicePresident-RayongFacilitiesManagement/GlowGroup (ExceptGlowIPPCo.,Ltd.) : 2002-2006 • GeneralManagerofOperationsofRayongFacilities/GlowGroup (ExceptGlowIPPCo.,Ltd.) 10. Mr. Louis Stephen Holub (46) Education : UnitedStatesNavyEducationPrograms,CityCollegeofChicago,Dundalk CommunityCollege : AmericanUniversity(Tulane&ArizonaState)DegreeAccreditationPending Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • SeniorVicePresident-OperationsSupportServices/ GlowEnergyPublicCo.,Ltd. • SeniorVicePresident-OperationsSupportServices/GlowGroup : 2006-2007 • SeniorVicePresident-StrategicInitiatives/GlowEnergyPublicCo.,Ltd. • SeniorVicePresident-StrategicInitiatives/GlowGroup • VicePresident-GIPPFacilityManagement/GlowIPPCo.,Ltd. : 2002-2006 • SeniorVicePresident-RayongFacilitiesManagement/ GlowEnergyPublicCo.,Ltd. • SeniorVicePresident-RayongFacilitiesManagement/GlowGroup

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11. Mr. Michael W. Reiff (45) Education : DiplomaofIndustrialManagement,IndustrialAcademyStuttgart,Germany Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • SeniorVicePresidentandChiefFinancialController/ GlowEnergyPublicCo.,Ltd. • SeniorVicePresidentandChiefFinancialController/GlowGroup : 2004-2006 • CorporateController/JohnsonElectric,HongKong : 2000-2003 • OperationsDevelopmentManager/TheCoca-ColaCo.,Ltd. 12. Mr. Wisit Srinuntawong (45) Education : MasterDegreeinBusinessAdministration,BangkokUniversity : BachelorDegreeinEngineering(ElectricalPower),KingMongkutInstitute ofTechnology(NorthBangkok) Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • SeniorVicePresident-Engineering/GlowEnergyPublicCo.,Ltd. • SeniorVicePresident-Engineering/GlowGroup : 1999-2004 • VicePresident-Engineering/GlowEnergyPublicCo.,Ltd. • VicePresident-Engineering/GlowGroup 13. Mr. Narongchai Visutrachai (41) Education : MasterDegreeinScience(Economics),UniversityofNorthTexas,USA : MasterDegreeinBusinessAdministration,KasetsartUniversity : BachelorDegreeinPoliticalScience(PublicAdministration), ChulalongkornUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • SeniorVicePresident-IPPBusiness&GovernmentAffairs/ GlowEnergyPublicCo.,Ltd. • SeniorVicePresident-IPPBusiness&GovernmentAffairs/GlowGroup 14. Ms. Chamaiporn Soothorntasanapong (47) Education : MasterDegreeinLiberalArt(Thai–EnglishTranslation),Ramkamhang University : BachelorDegreeinLiberalArts(English),ThammasartUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-ComplianceandInsurance/GlowEnergyPublicCo.,Ltd. • VicePresident-ComplianceandInsurance/GlowGroup

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15. Ms. Sirichan Chotchaisathit (43) Education : MasterDegreeinBusinessAdministration,ChulalongkornUniversity : BachelorDegreeinLiberalArts,ThammasartUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-IndustrialSales/GlowEnergyPublicCo.,Ltd. • VicePresident-IndustrialSales/GlowGroup(ExceptGlowIPPCo.,Ltd.) 16. Mr. Prateep Puthamrugsa (43) Education : MasterDegreeinPublicAdministration,PathumthaniUniversity : BachelorDegreeinIndustrialTechnology,SrinakarinwirotUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-SupplyChainManagement/GlowEnergyPublicCo.,Ltd. • VicePresident-SupplyChainManagement/GlowGroup : 2000-2006 • RayongAdministrationandSupplyChainManager/GlowGroup(Except GlowIPPCo.,Ltd.) 17. Mr. Somchai Klinsuwanmalee (42) Education : BachelorDegreeinAccounting,ChulalongkornUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-Government&PublicAffairs/GlowEnergyPublicCo.,ltd. • VicePresident-Government&PublicAffair/GlowGroup 18. Ms. Mantana Kunakorn (42) Education : BachelorDegreeinLiberalArts(IndustrialPsychology),ThammasartUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-HumanResourcesandAdministration/ GlowEnergyPublicCo.,Ltd. • VicePresident-HumanResourcesandAdministration/GlowGroup : 2002-2007 • AssistantVicePresident-HumanResourcesandAdministration/ GlowEnergyPublicCo.,Ltd. • AssistantVicePresident-HumanResourcesandAdministration/GlowGroup19. Mr. Renaud Louis Albert Pilleul (41) Education : BachelorDegreeinProcessEngineering,InstitutNationalPolytechnique deGrenoble,France Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-IndustrialCustomerRelations/GlowEnergyPublicCo.,Ltd. • VicePresident-IndustrialCustomerRelations/GlowGroup : 2003-2004 • ProjectManager-Phase4Stage1&2/GlowEnergyPublicCo.,Ltd.

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20. Mr. Jirasek Poomchai (41) Education : MasterDegreeinBusinessAdministration,ThammasartUniversity : BachelorDegreeinScience,KasetsartUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-LogisticsandFuelManagement/ GlowEnergyPublicCo.,Ltd. • VicePresident-LogisticsandFuelManagement/GlowGroup : 2001-2002 • AssistantVicePresident-LogisticsandFuelManagement/ GlowEnergyPublicCo.,Ltd. • AssistantVicePresident-LogisticsandFuelManagement/GlowGroup 21. Ms. Suttasinee Pengsupaya (40) Education : MasterDegreeinScience(Accounting),ThammasatUniversity,Bangkok : BachelorDegreeinAccounting,ThammasatUniversity,Bangkok Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-Accounting/GlowEnergyPublicCo.,Ltd. • VicePresident-Accounting/GlowGroup 22. Mr. Chaiwut Rattanapornsinchai (40) Education : MasterDegreeinComputerScience,RangsitUniversity : BachelorDegreeinComputerScience,ChandrakasemTeacherCollege Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-InformationofTechnology/GlowEnergyPublicCo.,Ltd. • VicePresident-InformationofTechnology/GlowGroup 23. Ms. Unchana Kittipiyakul (36) Education : MasterDegreeinBusinessAdministration,KasetsartUniversity : BachelorDegreeinAccounting,ThammasartUniversity. Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-BudgetingandBusinessControlling/ GlowEnergyPublicCo.,Ltd. • VicePresident-BudgetingandBusinessControlling/GlowGroup : 2003-2006 • AssistantVicePresident-FinancialControl/GlowGroup GlowEnergyPublicCo.,Ltd. • AssistantVicePresident-FinancialControl/GlowGroup

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24. Dr. Somgiat Dekrajangpetch (34) Education : DoctorateDegreeinElectricalEngineering(ElectricalPower),IowaState University : MasterDegreeinEconomics,IowaStateUniversity : MasterDegreeinElectricalEngineering,IowaStateUniversity : BachelorDegreeinScience-ElectricalEngineering,ChulalongkornUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-AssetOptimization/GlowEnergyPublicCo.,Ltd. • VicePresident-AssetOptimization/GlowGroup : 2003-2006 • SystemsOptimizationManager/GlowGroup 25. Mr. Sirote Vichayabhai (33) Education : MasterDegreeinScience(InternationalSecuritiesInvestmentand Banking),UniversityofReading,England : BachelorDegreeinScience(Economics),UniversityofLondon,England Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-Finance&InvestorRelations/GlowEnergyPublicCo.,Ltd. • VicePresident-Finance&InvestorRelations/GlowGroup : 2002-2003 • AssistantVicePresident-Finance/GlowEnergyPublicCo.,Ltd. • AssistantVicePresident-Finance/GlowGroup 26. Mr. Akarin Prathuangsit (32) Education : MasterDegreeinBusinessAdministration,AssumptionUniversity : BachelorDegreeinEngineering(IndustrialEngineering),Sirindhorn InternationalInstituteofTechnology,ThammasatUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • VicePresident-MarketingandBusinessPlanning/ GlowEnergyPublicCo.,Ltd. • VicePresident-MarketingandBusinessPlanning/GlowGroup : 2003-2004 • AssistantVicePresident-MarketingandBusinessPlanning/ GlowEnergyPublicCo.,Ltd. • AssistantVicePresident-MarketingandBusinessPlanning/GlowGroup 27. Mr. Anutarachai Nathalang (44) Education : MasterofEngineering(Electrical),KingMongkutInstituteofTechnology (Ladkrabang) : BechelorofScience(Physics),ChiangmaiUniversity Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • PlantManager/GlowEnergysite(phase1&2) : 1994-2006 • OperationPlanningManager/GlowGroup

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28. Mr. Apichart Jamjuntr (42) Education : BechelorDegreeinEngineering(ElectronicsEngineering),Rajamangala Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • PlantManager/GlowSPP2,GlowSPP3&GlowEnergy : 1995-2006 • OperationManager/GlowSPP2,GlowSPP3&GlowEnergy 29. Mr. Apidech Siriphornoppakhun (38) Education : BachelorDegreeinScience(IndustrialTechnology),RahaphatInstitute Chachoengsao,Chachoengsao Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • PlantManager/GlowSPP1Co.,Ltd. : 1997-2007 • OperationManager/GlowSPP1Co.,Ltd. 30. Mr. Suratchai Bangluang (39) Education : BachelorDegreeinElectricalEngineering,MahanakornUniversityof Technology,Bangkok Sharholding Proportion (Percent) : None Family Relation with Management : None 5 years past experience : Present • FacilityManager/GlowIPPCo.,Ltd. : 2003-2006 • MaintenanceManager/GlowEnergyPublicCo.,Ltd.,GlowSPP2, GlowSPP3&GlowEnergy Remark :GlowGroupaspermentioninthisattachmentis 1)GlowSPP2Co.,Ltd. 6)GlowDeminWaterCo.,Ltd. 2)GlowSPP3Co.,Ltd. 7) GlowIPP2HoldingCo.,Ltd. 3)GlowCo.,Ltd. 8)GlowIPP3Co.,Ltd. 4)GlowSPP1Co.,Ltd. 9)GHECO-OneCo.,Ltd. 5)GlowIPPCo.,Ltd.

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Information of management position of company, its subsidiary and associate company as of 31 March 2008 Companyname Glow Subsidiaries CompanyManagement Energy Glow Glow Glow Glow Glow Glow Glow Glow GHECO PCL SPP2 SPP3 Co.,Ltd. SPP1 IPP Demin IPP2 IPP3 -One Co.,Ltd. Co.,Ltd. Co.,Ltd. Co.,Ltd. Water Holding Co.,Ltd. Co.,Ltd. Co.,Ltd. Co.,Ltd.

1. Mr.GuyRichelle X X X X X X X X X /

2. Mr.PeterValereGermainTermote // // // // // // // // // /

3. Mr.KovitPoshyananda / / / / / / / /

4. Mr.VitthayaVejjajiva / / / / / / / /

5. Ms.SupapanRuttanaporn / / / / / / / /

6. Mr.DirkAchielMarcBeeuwsaert / / / / / / / /

7. Mr.GuidoGeeraerts / / / / / / / /

8. Mr.JohanDeSaeger / / / / / / / / / /

9. Mr.RajitNanda / / / / / / / / /

10.Mr.PhilipDeCnudde / / / / / / / /

11.Mr.AnutChatikavanij / / / / / / / / /

12.Mr.BrendanG.H.Wauters / / / / / / / /

13.Ms.SripraphaSumruatruamphol

14.Mr.EsaHeiskanen

15.Mr.PajongwitPongsivapai

16.Mr.SuthiwongKongsiri

17.Mr.SvendErikJensen

18.Mr.KanitThangpetch

19.Mr.LouisStephenHolub

20.Mr.MichaelW.Reiff

21.Mr.WisitSrinuntawong

22.Mr.NarongchaiVisutrachai

23.Ms.ChamaipornSoonthorntasanapong

24.Ms.SirichanChotchaisathit

25.Mr.PrateepPhuthamrugsa

26.Mr.SomchaiKlinsuwanmalee

27.Ms.MantanaKunakorn

28.Mr.RenaudLouisAlbertPilleul

29.Ms.SuttasineePengsupaya

30.Mr.ChaiwutRattanapornsinchai

31.Ms.UnchanaKittipiyakul

32.Dr.SomgiatDekrajangpetch

33.Mr.SiroteVichayabhai

34.Mr.AkarinPrathuangsit

35.Mr.AnutarachaiNatalang

36.Mr.ApichartJamjuntr

37.Mr.ApidechSiriphornoppakhun

38.Mr.SuratchaiBangluang

Remark/=Director X=ChairmanoftheBoard//=ChiefExecutiveOfficer

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2. Selection of Directors and Management Team Selection of Directors TheCompanyhassetuptheNominationandRemunerationCommitteewhoserolesinclude,amongstothers: • therecommendationstotheBoardofcandidateswithproperqualificationsfortheBoardtosubmitforappointment totheannualgeneralshareholdersmeeting. • seekproposalsofindividualsforappointmentasindependentmembersoftheBoard.AtthemeetingoftheShareholders,thefollowingrulesandprocedureswithregardstothevotingofdirectorsshallapply: • eachshareholdershallhaveonevoteforeachshareheorshe(orit)holds; • eachshareholdershallexerciseallthevotesheorshe(orit)holdstoelectoneorseveralperson(s)tobedirectors (ifanyshareholderwishestovoteforseveralcandidates,thevotesheldbysuchshareholdersshallbeequally allottedbetweenallsuchcandidates);and • thecandidatesreceivingthemostvotes,indescendingorder,shallbeelecteddirectorsoftheCompanyuntilall ofthedirectors’positionsarefilled.Intheeventofavacancyofadirector’spositionforreasonsotherthanbyretirementinduecourse,theBoardofDirectorsshall,byamajorityvoteofnotlessthanthree-fourthsoftheremainingdirectors,electasuitablyqualifiedperson,whodoesnotpossesscharacteristicsthatareprohibitedunderSection68ofthePublicCompanyLimitedActB.E.2535. Selection of Management Team TheNominationandRemunerationCommitteeshallalsomake recommendations to theBoard for thesuccessor to theChiefExecutiveOfficerwhenconsiderednecessaryaswellastodevelopasuccessionplanfortheChiefExecutiveOfficerthatconsidersbothpotential internal andexternal candidates.TheBoardofDirectorsof theCompany shall select themanagement teams by taking into consideration experiences, knowledge and skills for management according to therelated position selected. For more details on the scope and responsibilities of the Nomination and RemunerationCommittee,pleaserefertosection“NominationandRemunerationCommittee.”3. Remunerations Remunerations of the Board of Directors Duringthe2007fiscalyear,thetotalremunerationpaidto12directorswas3,588,830Baht Remuneration of the Management Team The total remuneration received from theCompanyby the30—personmanagement teamduring the2007 fiscal yearcomprisedsalaryandotherremunerationsuchasbonusesandprovidentfund,totaling138,892,100Baht.

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4. Human Resource ManagementAsof31December2007,totalnumberofemployeeswas450persons. Employee Company Head Office Plants Total

GlowEnergyPlc. - 54 54

GlowCo.,Ltd. 110 135 245

GlowIPPCo.,Ltd. - 38 38

GlowSPP1Co.,Ltd. - 32 32

GlowSPP2Co.,Ltd. - 57 57

GlowSPP3Co.,Ltd. - 24 24

GlowDeminWaterCo.,Ltd(1) - - -

Total 110 340 450Remark:(1)Companyindicatednoemployee,receivessupportsfromGlowCo.,Ltd.

Employees Remuneration As of 31 December 2007, the total remuneration paid to employees amounted to 485,605,019.87 Baht includingsalaries,bonusesandprovidentfunds. The Company and its Subsidiaries’ Policy for Employees GlowCompanybelievesthatourpeoplearethefoundationofoursuccess.Weemploy450peopleinThailand,atHeadOfficeinBangkokandPowerplantsinRayongandChonburi.Ouremployeesenjoyaworkingenvironmentthatencouragescommitment,teamworkandinnovation.Thisphilosophyissupportedbythestrengthofourleadership,ourhightechnicalstandardsandourpassionforsafety.Weworkinasafeandsatisfyingenvironment.Wecommitourselvestobeingaworldclassoperatorofpowergenerationandco-generationfacilitiesandtoconductingthiscorebusinesswithfullattentiontoEnvironmental,HealthandSafetyconcernsthataffectouremployees,clientsandthecommunity.Wecreatevalueforourshareholdersandcustomersthroughthecommitmentandknowledgeofouremployees.Weseektoimplementbestpractices throughhuman resource information systemsandHRpolicies, and standardizedprocedures.We focus on employee training and development and strengthening our employees’ ability to enhance organizationcapability.Ourmajorshareholderprovidessupportandguidanceindevelopingbestpracticesforourcompany.WeseektoattractandretainqualifiedprofessionalswhocanadheretotheGlowculture,whichisbasedoncommunication,courage,adaptability,loyalty,unityandcommitment.We support our people to realize their full potential by offering challenging work, project assignment, on-the-jobdevelopment, formal training and education. We also offer our employees highly competitive remuneration packages,includinganattractiverangeofbenefits.Oursuccesscomesfromourpeople.Wework inasafeandsatisfyingenvironment.Wechoosetotreateachotherwithtrustandrespectandmaintainahealthybalancebetweenworkandfamilylife.Ouroperationalexcellence,teamworkandabilitytodeliverproductreliabilityandavailabilityofourgeneratingunitsareourmostvaluedandrewardingstrengths.

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5. Dividend Policy DividendsmaybedeclaredbyGlowEnergy’sboardofdirectorssubjectto,inthecaseofannualdividends,theapprovalofour shareholders at any annual general meeting. Our declaration of interim dividends does not require shareholderapproval.Thecurrentpolicyofourboardofdirectorsistorecommendtoourshareholderstodistributeannualdividendsintheamountofnotlessthan50percentofournetincomeforeachyear,normalizedbyexcludingunrealizedforeignexchange gains and losses and after deduction of all specified reserves, subject to our investment plans and otherconsiderationsthatourboardofdirectorsdeemsappropriate.UnderthePLCA(PublicCompanyLimitedAct),wemaynotmakeanydistributionofdividendsotherthanoutofournetincome.Inaddition,nodividendscanbepaidifourretainedearningsarenotpositive,evenifwerecordnetincomeforthecurrentyear.UnderthePLCA,wearerequiredtosetasideasalegalreserveanamountequalto5percentofourannualnetincomeuntilourtotallegalreserveisnotlessthan10percentofourregisteredcapital,whichmayreducetheamountofnetincomeavailableforourpaymentofdividends.AsatDecember31,2007,ourregisteredcapitalwasBaht14,828.7millionandourlegalreservewasBaht1,087.8million,or7.3percentofourregisteredcapitalasatthatdate.OurtotalunapproriatedretainedearningsasatDecember312007wereBaht3,342.9million.Atpresent,theSubsidiaryoftheCompanyhasnospecificpolicyfordistributionofdividends.TheBoardofDirectorsofeach Subsidiary may consider and recommend to the Shareholders’ Meeting for consideration and approval of thedistributionofthedividends.6. Internal Control The Glow Audit Committee consists of 3 members who are also member of the Company’s Board of Directors. Thecompany’sInternalAuditfunction,reportingtotheAuditCommitteeandtheCompanymanagement,hasbeenoutsourcedtoPricewaterhouseCoopersFASLtd,whoperforms internalaudits incooperationwithSUEZEnergyInternationalGroupinternalaudit(“SEIIA”).In2007,theAuditCommitteeassessedtheadequacyoftheinternalcontrolsystemsoftheCompanyinordertoensurethe effectiveness of all operational and financial controls. The Audit Committee concluded that the Company hasadequate andappropriate internal control systems inplace, taking into account the currentbusiness environment andcharacteristics. In addition, the Company’s auditors also commented that there were no material deficiencies in theinternalcontroloftheCompanyinaccordancewiththegenerallyacceptedaccountingprinciples.The Organization and The Environment • TheorganizationalstructureinplaceallowstheCompany’smanagementteamtooperateobjectivelyandefficiently byclearlyspecifyingtherolesanddutiesofeachperson. • Comprehensivepoliciesandprocedureshavebeenestablishedforallthesignificantbusinessprocesses.Every employeehastocomplywiththesepoliciesandprocedureswithinhis/herresponsibility. • AGlowCodeofConducthasbeenimplementedandtheSUEZEthicsCharterhasbeencommunicatedtoall employeesoftheCompany. • Since2005,GlowinternalaudithasbeenoutsourcedtoPricewaterhouseCoopersFASLtd.GlowInternalAudit formallyreportsitsactivitiesandtheinternalauditfindingstotheCompanymanagementandtotheAuditCommittee, atleastfourtimesayear.In2005and2006,internalauditfocusedapproximatelyseventyfivepercentoftheir timeandeffortonfinancialreportingoninternalcontrols.

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• TheCompanyisalsosubjecttoSUEZEnergyInternationalGroupinternalaudit(“SEIIA”).Annually,SEIIAwill determinetheirauditprioritiesfortheSUEZEnergyInternationalGroup.TheCompany,beingasignificant subsidiaryintheGroup,issubjecttoanoperationalauditfromSEIIAatleastonceperyear.During2007,SEIIA performedinternalauditsonthecorporategovernanceframeworkandfinancialriskmanagement.SEIIAandthe Company’soutsourcedInternalAuditfunctionworkcloselytogetherandtheCompany’sInternalAuditisresponsible tocoordinateandfollow-uptheimplementationofallauditrecommendations. Risk Management Measurement • Businessriskswhichmighthaveanimpactonthebusinesstoachieveitsobjectivesareformallyassessedtwicea year,takingintoconsiderationthepresentandfuturerisksandcoveringstrategic,financial,operationaland compliancerisks. • Theimpactandlikelihoodofeachriskanditsriskfactorsareidentifiedandassessed. • Riskresponsesandmeasurementsaredevelopedtoreducerisks,andtheserisksarecontinuouslymonitored. • RisksarediscussedduringBoardofDirectors’meetingsandmonthlymanagementmeetings. Operation Controls of the Management • AnInternalandExternalPowerOfAttorney(“POA”)havebeenestablishedandcommunicatedtoallemployeesof theCompany.BothdocumentsareupdatedwhenrequiredandareapprovedbytheBoardofDirectors.ThePOA clearlyspecifiestheauthorizationlimitsforcapitalandoperationalspendingperfunction. • Forothertransactionswithmajorshareholders,directors,management,stafforotherspersonsrelatedtothose parties,theCompanyhasestablishedastrictguidelinetopreventanyconflictofinterest,bytakingintoconsideration theoptimizationoftheCompany’svaluetoitsshareholdersandotherstakeholders.Inaddition,allrelatedparty transactionsshouldbedoneonanarms-lengthbasis,thesamebasisapplicabletothirdpartiestransactions. Information and Communication Systems • ImportantandreliablebusinessandfinancialinformationisavailablefortheCompany’sdirectorstoassistthemin decisionmaking. • TheCompany’sdirectorsreceiveaninvitationandagendatogetherwithalltherelevantsupportingdocumentation totheagenda.Theproposedagenda,togetherwithinformationonpossibleimpacttowardstheCompanyaswell asallotherinformationthatisrequiredforconsiderationpurposes,isdistributedbeforethemeetingwithinthe minimumperiodoftimeprescribedbylaw.Moreover,theminutesofmeetingoftheBoardofDirectorscontainall necessarydetailssothattheshareholderscaninspecttheappropriatenessoftheoperationsoftheCompany’s Board. • TheCompanymaintainsandretainsalldocumentationthatisusedinrecordingofaccountingtransactionsaswell asallotherrelevantsupportingdocumentationinanorganizedmannerandincompliancewithlawsregulating thedocumentationretentionperiod. • TheCompanyappliesaccountingpoliciesinaccordancewithThaiAccountingStandards(“TAS”)andother internationalGenerallyAcceptedAccountingPrinciples,whereappropriate,andwhichareapplicableandaligned withthecharacteristicsoftheCompany’sbusiness.

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Monitoring System • GlowInternalAuditreportsallmaterialinternalcontroldeficienciestoGlowmanagementandtotheAuditCommittee. TheAuditCommitteeevaluatesthedeficienciesandassessestheadequacyoftheremediationplansinplaceand reportsonsuchfindingstotheCompany’sBoardofDirectorsfortheirnotificationwithinareasonableperiodoftime. • TheCompany’sdirectorsmonitoredandcomparedtheoperationalperformanceoftheCompany,aswellasthose ofmanagementagainstagreedobjectives,keyperformanceindicatorsandbudgets. • TheCompany’sinternalcontrolsystemsareauditedonacontinuousbasis.Eachyear,theCompanyagreesonan InternalAuditPlanbasedonidentifiedhighriskareastobeincludedintheinternalaudit’splanning. LSF – French Law on Internal Controls • Sinceacoupleofyears,principlesofcorporategovernanceandtheinternalcontrolrequirementshavebeen undergoingadeepreform.InSeptember2003,theSUEZGrouplaunchedtheControlDisclosureProgram(“CODIS”) inresponsetotheincreasingregulatorypressureforinternalcontrolanddisclosurerequirements,suchasthe FrenchLawonInternalControls(LSF).Beyondmerecompliance,theProgramwasseenasanopportunitytoadd valuebyreinforcingthefinancialreportingprocessesaswellasthesystemofinternalcontrolwithintheGroup. • ForGlowGroup,GlowEnergy,GlowSPP3andGlowIPPwereidentifiedinthescopeoftheCODISprogram. • TheCODISprogramrequiredasignificanteffortfromGlowGroup,especiallyduringthelastthreeyears.Allprocesses andrelatedinternalcontrolswithapotentialrelevantimpactonthefinancialstatementshavebeendocumented andtheinternalcontrolshavebeenassessedbycompanymanagementbothondesigneffectiveness(completeness ofdocumentationofthecontrols)andoperatingeffectiveness(effectiveexecutionoftheinternalcontrol).Among thedocumentedprocessesareaccountingmanagement,assetmanagement,salesmanagement,procurement management,operationsmanagement,corporategovernanceandITmanagement. • Aselectionofthemostcriticalinternalcontrols(KeyControls)hasbeenextensivelytestedbybothGlowInternal AuditandSEIInternalAuditaswellasbytheExternalAuditor.Thesetestsincludedassessmentofdesign effectivenessandoperatingeffectiveness. • Foralldeficienciesidentifiedduringthesetests,Glowmanagementhasdevelopedthenecessaryremediationplans. Theimplementationoftheremediationactionshasbeencloselymonitoredandhasbeensubjectedtoongoing testingtoensureeffectiveimplementation. • OnFebruary5th2008,theChiefExecutiveOffice(“CEO”)andChiefFinancialOfficer(“CFO”)oftheCompany havesigned-offtheGlowCODISAttestationfortheAccountingYear2007toSEImanagement. • Currently,thecompanyisintheprocessoffurtherembeddingtheinternalcontrolculturewithintheorganization.

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Detail of Related Party Transactions

Inaddition,theCompanyanditssixsubsidiaries,comprisingGlowCo.,Ltd.,GlowSPP1Co.,Ltd.,GlowSPP2Co.,Ltd.,GlowSPP3Co.,Ltd.,GlowIPPCo.,Ltd.,andGlowDeminWaterCo.,Ltd.(“GlowGroup”)jointlyenteredintoaSupportServicesAgreementandanEngineeringServicesAgreementonMay3,2005withSUEZ-TractebelS.A.(“SUEZ”),wherebySUEZshall provide consulting services in respect of engineering,operational, financial and auditing systems, investments,projectfinancing,insurance,etc.TheservicefeeisbasedonthereferencemarketrateandshallbeinEurocurrency.Theservice agreements will be determined in an hourly ratedependentonthetypeofservices.Thetermoftheagreementsis5yearsfromtheexecutiondate,automaticallyrenewedforasuccessiveone-yeartermunlessterminationisnotifiedbyeitherparty.Nevertheless,theagreementsshallbeterminatedonthedatewhenSUEZholdsdirectlyorindirectlylessthan25%ofthesharesofGlowGroup.TherelatedtransactionsbetweentheCompanyandthepersonswhomighthaveconflictofinterestforthepastyearhavebeenexecutedbytakingintoconsiderationthemaximumbenefitoftheCompany,andtheAuditCommitteehasconsideredandagreedthatsuchtransactionswerenormalcourseofbusinessandthattherewasnobenefittransferbetweentheCompanyandthepersonswhomighthavetheconflictofinterest.Inaddition,pricefixing,feerateandinterestrateofthetransactionswereallinaccordancewithgeneraltradeconditions.Pricefixingwascomparabletothemarketpriceandcompetitivemechanismsorwasthereasonablepriceanddidnothaveconditionsthatdifferedfrommakingtransactionswithotherthirdparties.

Related Party Transactions

TheCompanyhasbusinesstransactionswithitssubsidiaries,associatedcompaniesandrelatedcompaniesasdetailedinthenotetothefinancialstatementsNo.23.

Necessity and reasonableness of the Transactions

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Related Party Transactions

Approval Procedures of Related Transactions

SincetherelatedtransactionsoftheCompanywereinaccordancewiththenormalcourseofbusinessoperations,justlikethepurchase,salesand/orservicesprovidedtotheotherunrelatedbusiness,theapprovalproceduresareinaccordancewiththeregulationsoftheCompany,thesubsidiaries,theassociatedcompaniesandtherelatedcompanies.Inaddition,fortheconsiderationoftherelatedtransactionsbetweentheCompanyandthepersonswhomighthaveconflictofinterestandareashareholderorthemanagementofsuchcompany,suchshareholderorsuchmanagementshallnottakepartintheapprovalprocess.

Policy and Trend of Related Transaction in the Future

TheCompanyanticipatesthattherewillberelatedtransactionsincurredinthefuturebecausetherelatedtransactionsoftheCompanyhavebeendoneinaccordancewiththenormalbusinessoftheCompanyandtheCompanyhasthepolicytooperatesuchrelatedtransactionsforthemaximumbenefitoftheCompany.Fortherelatedtransactionsinthefuture,theCompanyshallcomplywiththelawsconcerningsecuritiesandstockexchangeandtheregulations,announcements,ordersorrequirementsoftheStockExchangeofThailandaswellaswiththerequirementsconcerningthedisclosureoftherelatedtransactionsandtheacquisitionanddisposalofthematerialassetsoftheCompanyincludingcompliancewiththeaccountingstandardsspecifiedbytheAccountantsandtheCertifiedPublicAuditorsAssociationofThailandandFederationofAccountingProfessionals.However,ifthereisarelatedtransactionoftheCompanywithapersonwhomighthaveconflictofinterestorthestakeholdersorwhomighthaveconflictofinterestinthefuture,theCompanyshallappointtheAuditCommitteetogiveanopiniononthenecessityandreasonablenessofsuchtransactionandtheappropriatenessofpricefixingofotheritemsinordertobeinaccordancewiththegeneralmarketpriceandwiththeconditionsthatarenotdifferentfromotherthirdpartiesoratprimecost.Inaddition,theCompanyshalldisclosetherelatedtransactionsinthenotetothefinancialstatements,whichhasbeenauditedbytheauditorsoftheCompany.

Auditor’s remuneration for the period of January 1, 2007 – December 31, 2007 consists of: -

The company Subsidiaries

Auditfee 1,869,310.00 5,192,690.00

Non-auditfee

- ReviewofFinancialratio 61,440.00 -

- ReviewofPackage 1,021,116.00 303,372.00

- Professionalfeefortheadditionalscopeofwork 200,000.00 100,000.00

- Other - -

(Unit:Baht)

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Management’s Discussion and Analysis

Management’s Discussion and Analysis of financial condition and results of operations

Glow Energy Public Company Limited and its subsidiaries are one of thelargest private electricity generators and providers of industrial utilities inThailand.WeoperateIPPandcogenerationfacilities(mostofwhichoperateasSPPsunderThailand’sSPPprogram)andourcorebusinessistoproduceand supply electricity to EGAT and electricity and steam to industrialcustomers in the MIE Area. As of December 31, 2007, we had a totalgenerating capacity of 1,708 MW of electricity and 967 tons per hour ofsteam.

OVERVIEW

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Revenues

RevenuesfromSalesofGoodsandRendering ofServices Electricity SalestoEGATbyIPP 10,161.8 30.8 10,705.0 31.5 (543.2) (5.1) SalestoEGATbySPPs 9,323.5 28.2 9,640.6 28.4 (317.1) (3.3) SalestoIndustrialCustomers 8,224.8 24.9 7,877.2 23.2 347.6 4.4 Total 27,710.1 83.9 28,222.8 83.1 (512.8) (1.8)

Steam 4,219.2 12.8 4,029.911.9 189.3 4.7 Processedwater 336.6 1.0 340.4 1.0 (3.8) (1.1) Total 32,265.9 97.7 32,593.1 96.0 (327.3) (1.0)

OtherIncome 745.4 2.3 1,398.74.0 (653.3) (46.7)

Total Revenues 33,011.3 100.0 33,991.8 100.0 (980.6) (2.9)

Management’s Discussion and Analysis

WerecordedtotalrevenuesofBaht33,011.3millionin2007,a2.9percentdecreasefromBaht33,991.9million in2006. Our normalizednet profit (net profit excludingunrealized exchange gains/losses), which is the basis used to determine our dividenddistribution, was Baht 4,313.7 million in 2007, a 6.3 per cent decrease from Baht4,602.0 million in 2006. As of December 31, 2007, we had total assets of Baht54,023.7millionandtotalliabilitiesofBaht25,052.8million.

REVENUES

Wederive our revenuesprimarily from sales of electricityto EGAT and sales of electricity, steam, clarified anddemineralized water to industrial users in the MIE Area.Thefollowingtablebreaksdownourrevenuesbysourcefortheperiodsindicated:

(Bahtmillions) (%) (Bahtmillions) (%) (Bahtmillions) (%)

Year to Date Ended December 31,

2007 2006 Difference

Our revenues are in part driven by the volumes of electricity and industrial utilities that we produce and sell to ourindustrialcustomersinMIEArea.Thefollowingtablesetsoutourvolumesofelectricityandindustrialutilitiessoldfortheperiodsindicated:

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Year to Date Ended December 31,

2007 2006 Difference (%)

REVENUES FROM SALES OF GOODS ElectricitySalestoEGAT WesellelectricitytoEGATunderourEGATpowerpurchaseagreements.WearecurrentlypartytooneIPPpowerpurchase agreement, in respectof713MWofelectricityanda total of8SPPpowerpurchaseagreements, in respectofan aggregateof590MWofelectricity. ElectricitySalestoIndustrialCustomers Wesellelectricitytoourindustrialcustomersunderourpowersupplyagreements.AsofDecember31,2007,wewere partytoatotalof35powersupplyagreementswith27industrialcustomersinrespectofanaggregateof440MWof electricity. SteamSales Wesellsteamtoour industrialcustomersunderoursteamsupplyagreements.AsofDecember31,2007,wewere partytoatotalof23steamsupplyagreementswith17industrialcustomersinrespectofanaggregateof736tonsper hourofsteam. ProcessedWaterSales Wesellclarifiedwateranddemineralizedwatertoourindustrialcustomersunderourwatersupplyagreements.Asof December 31, 2007, we were party to a total of 13 water supply agreements with 9 customers in respect of an aggregateof1,549cubicmetersperhourofwater.

Volumes Sold

Electricitydispatch(GWh) ToEGATbyIPP 5,175.4 5,328.1(152.7)(2.9) ToEGATbySPPs 3,949.6 3,994.6(45.0)(1.1) ToIndustrialCustomers 3,323.3 3,066.9 256.4 8.4

Total 12,448.3 12,389.6 58.7 0.5

Steam(thousandsoftons) 5,696.5 5,483.4 213.2 3.9

Processedwater(thousandsofcubicmeters) 11,262.4 12,230.3 (968.0) (7.9)

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(Bahtmillions) (%) (Bahtmillions) (%) (Bahtmillions) (%)

2007 2006 Difference

Year to Date Ended December 31,

EXPENSES Ourexpensesconsistofcostofsalesofgoodsandsellingandadministrativeexpenses.Thefollowingtablesetsoutthedifferentcomponentsofourexpensesbytheiramountandasapercentageofourtotalexpensesfortheperiodsindicated:

ThefollowingtableshowsabreakdownofourcostsforGlowIPP,ononehand,andforourcogenerationfacilities,ontheother:

Expenses

CostofSalesofGoods Fuel NaturalGas 19,967.9 74.6 19,640.9 73.2 326.9 1.7 Coal 1,396.7 5.2 1,550.4 5.8(153.7)(9.9) Diesel 27.0 0.1 55.70.2(28.7)(51.5) Maintenance 786.1 2.9 699.0 2.6 87.1 12.5 Depreciation/Amortization 2,925.3 10.9 2,976.2 11.1(50.9)(1.7) Other 1,161.7 4.3 1,248.4 4.7(86.7)(7.0) Total Cost of Sales of Goods 26,264.7 98.1 26,170.7 97.6 94.1 0.4

SellingandAdminstrativeExpenses Depreciation/Amortization 25.5 0.1 27.3 0.1(1.8)(6.5) FinancialExpenses 81.4 0.3 98.6 0.4(17.2)(17.4) General 410.8 1.5 531.1 2.0(120.3)(22.6) TotalSellingandAdministrative Expenses 517.7 1.9 656.9 2.4(139.2)(21.2)ExchangeLoss 0 0 0 0 0 0 Total Expenses 26,782.4 100.0 26,827.5 100.0(45.1)(0.2)

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Note: (1)ThedatapresentedhereinasthecostofsalesofourcogenerationfacilitiesisourconsolidatedfinancialresultslesstheresultsofGlowIPP.Infact, certainoftheseamountsareattributabletoportionsofourbusiness,whicharenottechnicallyourcogenerationfacilities,althoughtheseamounts representonlyasmallportionthereof.

COST OF SALES OF GOODS Fuel

Theprincipalfuelsthatweusetogenerateelectricityandsteamarenaturalgasandcoal.Purchasesofnaturalgasconstitute oursinglelargestoperatingexpense,accountingfor74.6percentofourtotalexpensesin2007. Thefollowingtablesetsoutouraveragegascostsfortheperiodsindicate:

Note: (1)Thesearenotouractualgasprices,butarederivedbytakingourtotalnaturalgasexpensesanddividingbytotalfuelconsumptionofthefacilities fortheperiodspresented. (2)Thisisa“blended”rate,reflectingprincipallypricespaidtoPTT(i)byourcogenerationfacilitiesforgasusedtosupplyelectricitytoEGATand industrialcustomers,(ii)forgasusedtofireboilerstogeneratesteamforindustrialcustomers.Eachofthepricessetoutin(i)and(ii)aredifferent. WealsopurchasesmallamountsoftailgasfromanotherThaisupplier,whichpricesareseparateandarealsofactoredintotheforegoingrates.

Year to Date Ended December 31,

Average Effective Cost of Natural Gas(1)

Averagecost ToGlowIPP 202.00 201.87 0.14 0.1 ToCogenerationfacilities(2) 208.13 207.35 0.79 0.4

(Bt/mmBTU) (Bt/mmBTU) (Bt/mmBTU) (%)

(Bahtmillions) (%) (Bahtmillions) (%) (Bahtmillions) (%)

2007 2006 Difference

Year to Date Ended December 31,

2007 2006 Difference

IPP and Cogeneration Facilities Cost of Sales of Goods Breakdown(1)

GlowIPP NaturalGas 7,213.6 83.8 7,396.4 83.6(182.9)(2.5) Coal 17.4 0.2 49.0 0.6(31.6)(64.5) Maintenance 84.3 1.0 67.9 0.8 16.4 24.2 Depreciation/Amortization 1,109.1 12.9 1,137.2 12.9(28.2)(2.5) Others 180.6 2.1 192.7 2.2(12.0)(6.3) Total Cost of Sales 8,604.9 100.0 8,843.2 100.0(238.3)(2.7)

CogenerationFacilities NaturalGas 12,754.3 72.2 12,244.5 70.7 509.8 4.2 Coal 1,396.77.9 1,550.4 9.0(153.7)(9.9) Diesel 9.6 0.1 6.7 0.0 2.9 43.6 Maintenance 701.8 4.0 631.1 3.6 70.7 11.2 Depreciation/Amortization 1,816.3 10.3 1,839.0 10.6(22.7)(1.2) Others 981.0 5.6 1,055.7 6.1(74.7)(7.1) Total Cost of Sales 17,659.8 100.0 17,327.5 100.0 332.3 1.9

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Purchasesofcoalaccountedfor5.2percentofourtotalexpensesin2007. Thefollowingtablesetsoutaveragecoalcostsfortheperiodsindicated:

Note: (1)Thesearenotouractualcoalprices,whicharesubjecttovariousadjustmentsunderthetermsofourcoalsupplycontracts,butabenchmarkprovided toillustratethegeneralmovementsincoalpricesovertheperiodspresented. (2)Thesereflectouractualfreightandinsurancecosts.

Thekeydeterminantsofour fuelexpensesare theamountsofelectricityandsteamproducedbyour facilitiesand theefficiencywithwhichweareabletogeneratesuchproducts.

Thefollowingtablesetsouttheenergyproductionlevelsandheatratesofourfacilitiesfortheperiodsindicated:

Note: (1)Wepresentan“allocated”heatrate,whichisadeemedheatrateforourcogenerationfacilitiesthatwederivebydividingthetotalfuelenergy consumptionofsuchfacilitiesoveraspecifiedperiodoftimebytheenergyproducedduringsuchperiod.Thisisnotastraightforwardexercise,particularly withrespectofourGlowSPP2/SPP3hybridfacility,where,forpurposesofsuchcalculation,wearerequiredto“allocate”theamountofenergyproduced usingsteamandtheamountofenergyusedproducinggas.Wemakethisallocationonthebasisofthecontributionofeachenergysourcetototalenergy input,whichinvolvessubjectivejudgmentsandtheuseofsimplifyingassumptions. (2)Includesproductionofelectricityandsteam.Forthesepurposes,steamhasbeenconvertedintoMWatadeemedequivalentelectricalenergyvalue. (3)CFBstart-upgasischargedtothecoalheatratesforpurposesofthefigurespresentedinthistable.

($/ton) ($/ton) ($/ton) (%)

Production and Heat Rates(1)

Glow IPP Equivalentenergyproduction(GWh) 5,175 5,328 Fuelconsumption(mmBTU,HHV) 35,742,561 36,737,712 Heatrate(BTU/kWhe,HHV) 6,906 6,895

Cogeneration facilities Allocatedenergyproduction(GWhequivalent)(2) Gas-firedcogenerationfacilities 6,950 6,672 Coal-firedcogenerationfacility 1,693 1,700

Fuelconsumption(mmBTU,HHV) Gas-firedcogenerationfacilities 61,201,856 58,950,657 Coal-firedcogenerationfacility 17,185,749 17,431,948 Allocatedheatrates(BTU/kWhe,HHV) Gas-firedcogenerationfacilities 8,806 8,835 Coal-firedcogenerationfacility(3) 10,202 10,285

2007 2006

Year to Date Ended December 31,

Year to Date Ended December 31,

2007 2006 Difference

Average Cost of Coal

Referencecoalprice@6,700kcal/kg(1) 48.21 48.11 0.10 0.2 Freightcosts(2) 11.28 9.55 1.73 18.1

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MaintenanceExpenses

Thefollowingtablesetsforthabreakdownofourmaintenancecostsfortheperiodsindicated:

RESULTS OF OPERATIONS Year2007comparedtoYear2006

Revenues

RevenuesfromsalesofgoodsandtherenderingofserviceswasBaht33,011.3millionin2007,a2.9percentdecreasefromBaht33,991.9millionin2006.Thedecreaseisattributabletothefollowingfactors: • SalesofelectricitytoEGATbyGlowIPPamountedtoBaht10,161.8millionin2007,a5.1percentdecreasefrom Baht10,705.0millionin2006.ThisdecreasewasprincipallycausedbyalowercapacitypaymentfromEGATdue totheappreciationofThaiBahtandbyaloweravailabilityduetoinspectionandmaintenanceoutagein2007.The Thaibahtappreciatedby8.5percentfrom37.86BahtperUSDollarin2006to34.64BahtperUSDollarin2007. Plantavailabilitywasat94.6percentin2007versus97.5percentlastyear.

• SalesofelectricitytoEGATbyourcogenerationfacilitiesamountedtoBaht9,323.5millionin2007,a3.3percent decreasefromBaht9,640.6millionin2006.Thisdecreasewasprincipallycausedbythemaintenanceoutageat GlowSPP3andastrongerThaiBahtin2007comparedto2006.

• SalesofelectricitytoindustrialcustomersbyourcogenerationfacilitiesamountedtoBaht8,224.8millionin2007,a 4.4percentincreasefromBaht7,877.2millionin2006.Thisincreasewasprincipallyduetoincreasesinvolumes ofelectricitysoldfromnewcontractsstartingin2007.Theelectricityvolumesoldtoindustrialcustomersgrew8.4 percentyearonyearbutthesellingpricedecreased,mainlyduetodecreasesintheFTcomponentofthePEAtariff (whichistheprincipalindexforsalesprices).TheFTdecreasedby7.76satangoradecreaseof9.9percentyear onyear,whilethebasetariffremainedunchanged.

• SalesofsteamtoindustrialcustomersbyourcogenerationfacilitiesamountedtoBaht4,219.2millionin2007,a 4.7percent increase fromBaht4,029.9million in2006.This increasewasprincipallybecauseof increases in steamsalesvolume,whichgrew3.9percentyearonyear. • SalesofotherproductsandservicesbyourcogenerationfacilitiesamountedtoBaht336.6millionin2007,a1.1 percentdecreasefromBaht340.4millionin2006.Thisdecreasewasduetoalowersellingvolumeofprocessed waterasaresultofcustomers’maintenanceoutage.Ourotherincomeconsistsmostlyofrevenuefromnetexchangegains,interestincomeandothers.

(Bahtmillions) (Bahtmillions) (Bahtmillions) (%)

Year to Date Ended December 31,

2007 2006 Difference

Maintenance Costs

GlowIPP 84.3 67.9 16.4 24.2Cogenerationfacilities 701.8 631.1 70.7 11.2

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Therewasanetexchangegainin2007amountingtoBaht533.2million,adecreaseofBaht623.1millionfromBaht1,156.3millionin2006.ThisexchangegainisderivedmainlyfromtheUSdollardenominateddebtinGlowIPP,whichisbeingservedbytheUSdollarlinkedrevenuefromsalesofelectricitytoEGAT.WerecognizedinterestincomeofBaht122.7millionin2007,adecreaseofBaht51.0millionfromBaht173.7millionin2006.Ourinterestincomein2007wasprincipallyattributabletointerestearnedoncashheldintheformofdeposits,instrumentsandinreserveaccountsunderourprojectfinancingagreements.Ourinterestincomeintheyear2006wasprincipallyattributabletothesamesources.Theinterestrateondepositshaddecreasedovertheyearwhileatthesametimethecompanyismaintaininglesscashbalance. Othersincomein2007amountedtoBaht89.5million,andconsistedprincipallyofrevaluationofspareparts.Othersintheyear2006amounted toBaht68.8million,andconsistedprincipallyofproceeds fromsalesofunusedsparepartsremainingfromthepreviousLongTermServiceAgreement.Asaresultoftheforegoing,totalrevenuesin2007amountedtoBaht33,011.3million,a2.9percentdecreasefromBaht33,991.9millionin2006.Expenses CostofsalesofgoodswasBaht26,264.7millionin2007,a0.4percentincreasefromBaht26,170.7millionin2006,whichincreaseisattributabletothefollowingfactors: GlowIPP

• GlowIPP’scostofnaturalgaswasBaht7,213.6millionin2007,a2.5percentdecreasefromBaht7,396.4million intheyear2006.Thisdecreasewasprincipallybecauseoflessfuelconsumptionduetoloweravailablilityin2007.

• GlowIPP’scostofdieselwasBaht17.4millionin2007,comparedtoBaht49.0millionin2006.Thisdecrease wasduetolowerdieseldispatchbyEGATcomparedtothepreviousyear. • GlowIPP’smaintenancecostswereBaht84.3millionin2007,comparedtoBaht67.9millionin2006.Thehigher maintenancecostscanmainlybeattributedtoAandBinspectionsperformedonthegasandsteamturbinesinQ42007.

• GlowIPP’sdepreciationandamortizationcostswereBaht1,109.1millionin2007,a2.5percentdecreasefrom Baht1,137.2millionin2006.

• GlowIPP’sothercostsofsalesofgoodswereBaht180.6millionin2007,a6.3percentdecreasefromBaht192.7 million in2006.GlowIPP’sothercostsofsalesofgoodsconsistmainlyofwater,chemicals,andgeneraloverhead costs,whereoverheadcostsdecreasedslightlyyearonyear. Cogenerationfacilities • Ourcogenerationfacilities’costofnaturalgaswasBaht12,754.3millionin2007,a4.2percentincreasefromBaht 12,244.5millionin2006.Thisincreasewasprincipallyduetoincreasesinthevolumesofelectricitysoldtoindustrial customers. • Ourcogenerationfacilities’costofcoalwasBaht1,396.7millionin2007,a9.9percentdecreasefromBaht1,550.4 millionin2006.Thecoalconsumptionreducedby1.4percentsincetherewasamajorinspectionofthecoalfacility. AlthoughthetotalcoalpriceinUSDCIFincreasedby4.0percent,thetotalcoalpriceinTHBCIFdecreasedby4.8

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percentasaresultofthestrongerThaiBaht.Coalprice(USDFOB)increasedby0.2percentandfreightprice(USD) increasedby18.1percent.

• Ourcogenerationfacilities’maintenancecostswereBaht 701.8 million in 2007, a 11.2 per cent increase from Baht631.1millionin2006,mainlyduetotheAandB inspectionsatGlowEnergyandGlowSPP1. • Ourcogenerationfacilities’depreciationandamortization costswereBaht1,816.3millionin2007,a1.2percent decreasefromBaht1,839.0millionin2006.

• Ourcogenerationfacilities’othercostsofsalesofgoodswereBaht981.0millionin2007,a7.1percentdecrease fromBaht1,055.7millionin2006,sincein2006wewroteoffagasengineforBaht65millionandin2007we wroteoffdevelopmentcoststotallingBaht28millionforourgasIPPbid.Sellingandadministrativeexpensesin2007amountedtoBaht517.7million,a21.2percentdecreasefromBaht656.9millionin2006.Thiswasattributabletothefollowingfactors: • DepreciationandamortizationamountedtoBaht25.5million in2007,a6.5percentdecrease fromBaht27.3 millionin2006. • FinancialexpensesamountedtoBaht81.4millionin2007,a17.4percentdecreasefromBaht98.6millionin2006. ThisdecreasecanbemainlyattributedtolowerguaranteefeeundertheGlowIPPloanfacility. • GeneralsellingandadministrativeexpensesamountedtoBaht410.8millionin2007,a22.6percentdecreasefrom Baht531.1millionin2006.ThisdecreasewasduetocostsassociatedwiththethirdpartyexpensesforHRand officeadministrationcostsandconsultantfees. Asaresultoftheforegoing,ourtotalexpensesinthe2007wereBaht26,782.4million,a0.2percentdecreasefromBaht26,827.5millionin2006.

ProfitBeforeInterestExpensesandIncomeTax Asaresultoftheforegoing,ourprofitbeforeinterestexpensesandincometaxin2007wasBaht6,228.9million,a13.1percentdecreasefromBaht7,164.3millionin2006.InterestExpensesOur interest expenses in2007wereBaht1,112.6million, adecreaseof13.5per cent fromBaht1,285.6million in2006.ThisdecreasewasprincipallyattributabletothereductionofaverageinterestcostandfromlowernetoutstandingdebtatGlowEnergy.

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IncomeTaxExpensesOurincometaxexpensesin2007wereBaht276.5million,anincreaseofBaht99.2millionfromBaht177.3millionin2006.Ourincometaxexpensesin2007wereprincipallyattributabletotaxableincomeatGlowEnergy,whichisoutofitsBOIfulltaxexemptionperiod.ProfitAfterTaxAsaresultoftheforegoing,ourprofitaftertaxin2007amountedtoBaht4,839.7million,a15.1percentdecreasefromBaht5,701.5millionin2006.NetProfitofMinorityInterestNet profit of minority interest in 2007 was Baht 57.0 million from Baht 105.1 million in 2006. This decrease wasprincipally due to the lower revenue of Glow IPP compared to 2006 (which is the company representing most of theminorityinterestinourgroupcompanies).NetProfitAs a result of the foregoing, our net profit in 2007 was Baht 4,782.8 million, a 14.5 per cent decrease from Baht5,596.4millionin2006.NormalizedNetProfitIn2007,ournetprofitexcludingBaht469.0millionunrealizedforeignexchangegains,wasBaht4,313.7million,a6.3per cent decrease from Baht 4,602.0 million in 2006. This normalized net profit is the basis used to determine ourdividenddistribution.

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Audit Committee's Report

To: The Shareholders

Glow Energy Public Company Limited (“the Company”)

TheAuditCommitteeiscomposedofthreeindependentdirectors:

• Mr.KovitPoshyananda Chairman

• Mr.VitthayaVejjajiva Member;and

• Ms.SupapunRuttanaporn Member

TheAuditCommitteewasappointedforathree-yearterm,commencingon18April2005.TheinternalauditfunctionhasbeenoutsourcedtoPricewaterhouseCooperswhoactsastheauditcommitteesecretary.

Duringtheperiodended31December2007,theAuditCommitteeheldsevenmeetingsandperformedtheirdutiesandresponsibilitiesinaccordancewiththeAuditCommitteeCharter.Theprincipalresponsibilitiesduringtheperiodwereasfollows:

1. Independentlyreviewedtheinterimandannualfinancialstatementsbycoordinatingwiththeexternalauditorsand relatedmanagementandproposedfortheBoard’sapproval.

2. Reviewedtheadequacyandeffectivenessoftheinternalcontrolsystemsandtheinternalauditfunctionbycoordinating withtheexternalauditorsandinternalauditors.

3. ReviewedcompliancewiththeSecuritiesandExchangeAct,StockExchangeofThailandregulations,andanyother relevantlawsofThailand.

4. Consideredandadvisedontheappointmentoftheexternalauditorsincludingtheauditfee.

5. Reviewedandapprovedtheinternalauditplanandassesstheperformanceoftheoutsourcedinternalaudit.

6. Reviewedcompanyrisksasidentifiedbytheinternalauditorandmanagement,andalsoreviewthatappropriaterisk managementisemployedbytopmanagement.

7. Consideredtheaccuracyandsufficiencyofthecompany’sdisclosureofinformationonconnectedtransactionsor potentialconflictsofinterest.

TheAuditCommitteeisoftheviewthatthecompanyrecognisestheimportanceofconductingitsbusinessinaccordancewith the Stock Exchange of Thailand’s Principles of Good Governance, as evidenced by a process to review all theCorporate Governance Policies to ensure they are compliant with all the SET Principles and include relevant bestpractices.Inaddition,theAuditCommitteehasbeengiventheresponsibilityassociatedwithgoodCorporateGovernance.

Audit Committee's Report

Thecompanyhasagoodandeffectiveinternalcontrolsystem,asthemanagementofthecompanyrecognisestheimportanceofsuch.Inaddition,asasubsidiaryofacompanylistedoverseas,thecompanyisrequiredtocomplywiththeinternalcontrolrequirementsoftheFrenchLaw(LoideSécuritéFinancière-“LSF”)andtheEuropeanDirectivethatwillbeapplicablein2008.TheLSFFrenchLawrequiresthattheChiefExecutiveOfficer(“CEO”)andChiefFinancialOfficer(“CFO”)ofSUEZ,themajorshareholderofGlow,toattestonthequalityofinternalcontroloverfinancialreportingfortheyear-end2007FinancialStatements.Inordertosupporttheirsignature,SUEZisrequestingaback-upattestationfromtheCEOandCFOoftheCompany.

Furthermore,thecompany’sseniormanagementhasanongoingcommitmenttoaddvaluetothecompanyforthebenefitofallstakeholders.

TheAuditCommitteeproposedtheappointmentofDeloitteToucheTohmatsuJaiyosAuditCo.,Ltdastheexternalauditorof the company for the period ending 31 December 2008 and proposed that the Board of Directors request that themeetingofthecompany’sshareholdersfortheyear2007considerappointingMs.ThanawanAnuratbodee,CPAregistrationno.3440orMr.NitiJungnitnirundr,CPAregistrationno.3809orMs.SompornDulyavit,CPAregistrationno.3769ofDeloitteToucheTohmatsuJaiyosAuditCo.,Ltdastheexternalauditorsofthecompanyaswellasthedeterminationoftheauditfee.

Mr.KovitPoshyananda ChairmanoftheAuditCommittee GlowEnergyPublicCompanyLimited

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109

Report Of The Independent Certified Public Accountants

TO THE SHAREHOLDERS AND THE BOARD OF DIRECTORS GLOW ENERGY PUBLIC COMPANY LIMITED We have audited the consolidated balance sheets of Glow Energy Public Company Limited and its subsidiaries and the separate balance sheets of Glow Energy Public Company Limited as at December 31, 2007 and 2006, and the related consolidated and separate statements of income, changes in shareholders' equity and cash flows for the years then ended. These financial statements are the responsibility of the Company's management as to their correctness and completeness of the presentation. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the aforementioned consolidated and separate financial statements present fairly, in all material respects, the financial position of Glow Energy Public Company Limited and its subsidiaries and of Glow Energy Public Company Limited, as at December 31, 2007 and 2006, and the results of operations and cash flows for the years then ended in accordance with generally accepted accounting principles. Without qualifying our opinion, as discussed in Note 1.2 to the financial statements, for the year ended December 31, 2007, the Company changed its accounting policy for investments in subsidiaries from the equity method to the cost method for the separate financial statements to be in compliance with the Notification of Federation of Accounting Professions, and restated the separate financial statements for the year ended December 31, 2006 for the change in such accounting policy. Chongchitt Leekbhai Certified Public Accountant (Thailand) Registration No. 2649 DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD. BANGKOK January 28, 2008

110

Unit : Baht

Notes to the financial statements form an integral part of these statements

Balance Sheets GLOW ENERGY PUBLIC COMPANY LIMITED AND SUBSIDIARIES As At December 31, 2007 And 2006

Consolidated TheSeparatefinancialstatements ”Restated”

Note 2007 2006 2007 2006

ASSETS

CURRENT ASSETS

Cash and cash equivalents 5 4,042,573,667 4,367,969,055 187,428,600 771,124,225

Current investments 6 1,710,093,615 1,770,519,781 653,598,524 650,875,854

Trade accounts receivable, net 7, 23 4,569,233,694 4,764,759,471 1,206,856,476 1,212,466,253

Advances to related parties 23 2,767,890 - 172,531,930 19,320,313

Interest receivable from related parties 23 - - 30,733,644 30,733,644

Inventories, net 8 1,660,961,042 1,637,974,601 245,045,789 217,425,747

Other current assets

Prepaid expenses 139,049,485 157,667,488 37,436,932 44,179,801

Advance payment 197,218,410 217,619,658 19,057,847 17,804,060

Others 131,739,257 122,920,884 43,131,911 28,145,260

Total Current Assets 12,453,637,060 13,039,430,938 2,595,821,653 2,992,075,157

NON-CURRENT ASSETS

Investments in subsidiaries using the

cost method 9 - - 19,774,948,743 19,490,733,681

Long-term investments in other company 1,500,000 1,500,000 1,500,000 1,500,000

Long-term loans to related parties 10, 23 - - 6,015,000,000 6,015,000,000

Property, plant and equipment, net 11 40,861,674,350 40,992,055,222 10,244,087,368 8,534,157,480

Other non-current assets, net 12 706,840,983 576,310,771 50,720,647 25,763,224

Total Non-Current Assets 41,570,015,333 41,569,865,993 36,086,256,758 34,067,154,385

TOTAL ASSETS 54,023,652,393 54,609,296,931 38,682,078,411 37,059,229,542

111

Balance Sheets (Continued) GLOW ENERGY PUBLIC COMPANY LIMITED AND SUBSIDIARIES As At December 31, 2007 And 2006

Notes to the financial statements form an integral part of these statements

Unit : Baht

Consolidated TheSeparatefinancialstatements ”Restated”

Note 2007 2006 2007 2006

LIABILITIESANDSHAREHOLDERS’EQUITY

CURRENT LIABILITIES

Trade accounts payable 23 2,793,699,618 3,822,852,193 825,555,320 1,381,900,274

Current portion of finance lease payables 13 38,537,672 16,376,197 5,080,985 4,379,565

Current portion of long-term loans 14 717,675,588 865,048,652 - -

Current portion of convertible debentures 15 - 1,497,674 - 1,497,674

Current portion of debentures 16 2,600,000,000 2,600,000,000 2,600,000,000 2,600,000,000

Advances from related parties 23 20,398,027 19,086,217 45,112,783 6,840,862

Other current liabilities

Other payables 55,217,120 49,588,104 11,498,721 4,087,023

Accounts payable - acquisition of assets 131,356,097 106,660,955 65,874,149 19,524,759

Accrued interest expense 128,646,595 174,713,961 110,589,662 149,074,820

Accrued expenses 314,731,734 350,852,582 111,125,822 91,380,729

Value added tax payable 132,104,242 209,735,133 32,607,723 41,699,350

Corporate income tax payable 71,044,281 54,159,896 38,842,041 54,159,896

Others 722,045,371 639,294,253 585,584,911 511,179,185

Total Current Liabilities 7,725,456,345 8,909,865,817 4,431,872,117 4,865,724,137

NON-CURRENTLIABILITIES

Finance lease payables 13 39,471,693 22,069,582 6,438,810 9,003,360

Long-term loans 14 9,290,374,213 10,581,999,448 2,427,699,600 2,476,874,700

Debentures 16 7,773,376,069 8,368,327,096 7,773,376,069 8,368,327,096

Other non-current liabilities 224,123,835 286,662,791 196,350,294 253,888,298

Total Non-Current Liabilities 17,327,345,810 19,259,058,917 10,403,864,773 11,108,093,454

TOTALLIABILITIES 25,052,802,155 28,168,924,734 14,835,736,890 15,973,817,591

112

Notes to the financial statements form an integral part of these statements

Balance Sheets (Continued) GLOW ENERGY PUBLIC COMPANY LIMITED AND SUBSIDIARIES As At December 31, 2007 And 2006

Unit : Baht

Consolidated TheSeparatefinancialstatements ”Restated”

Note 2007 2006 2007 2006

LIABILITIESANDSHAREHOLDERS’EQUITY(Continued)

SHAREHOLDERS’EQUITY

SHARE CAPITAL

Authorized share capital

1,482,865,035 ordinary shares of Baht 10 each 14,828,650,350 14,828,650,350 14,828,650,350 14,828,650,350

Issued and paid-up share capital

1,462,865,035 ordinary shares of Baht 10 each 14,628,650,350 14,628,650,350 14,628,650,350 14,628,650,350

PREMIUM ON ORDINARY SHARES 2,935,427,353 2,935,427,353 4,786,986,727 4,786,986,727

RETAINED EARNINGS

Appropriated

Legal reserve 18 1,087,782,469 834,535,369 1,087,782,469 834,535,369

Unappropriated 9,950,083,268 7,724,586,427 3,342,921,975 835,239,505

TOTAL COMPANY’S SHAREHOLDERS’ EQUITY 28,601,943,440 26,123,199,499 23,846,341,521 21,085,411,951

MINORITY INTEREST 368,906,798 317,172,698 - -

TOTALSHAREHOLDERS’EQUITY 28,970,850,238 26,440,372,197 23,846,341,521 21,085,411,951

TOTALLIABILITIESANDSHAREHOLDERS’EQUITY 54,023,652,393 54,609,296,931 38,682,078,411 37,059,229,542

113

Notes to the financial statements form an integral part of these statements

Statements Of Income GLOW ENERGY PUBLIC COMPANY LIMITED AND SUBSIDIARIES For The Years Ended December 31, 2007 And 2006

Unit : Baht

Consolidated TheSeparatefinancialstatements ”Restated”

2007 2006 2007 2006

REVENUES

Revenues from the sales of goods 32,265,849,729 32,593,115,443 10,597,905,928 10,078,360,459

Other income

Exchange gain 533,192,178 1,156,297,530 - -

Interest income 122,715,830 173,688,766 241,649,132 291,821,334

Dividend income - - 3,654,366,571 2,271,260,714

Others 89,537,563 68,757,374 27,893,907 21,697,633

Total Revenues 33,011,295,300 33,991,859,113 14,521,815,538 12,663,140,140

EXPENSES

Costs of the sales of goods 26,264,725,355 26,170,662,124 8,512,327,364 8,074,808,617

Selling and administrative expenses 517,678,154 656,872,709 228,173,391 194,994,330

Exchange loss - - 1,728,662 3,160,098

Total Expenses 26,782,403,509 26,827,534,833 8,742,229,417 8,272,963,045

PROFIT BEFORE INTEREST AND INCOME

TAX EXPENSES 6,228,891,791 7,164,324,280 5,779,586,121 4,390,177,095

INTEREST EXPENSE 1,112,619,140 1,285,579,625 552,349,917 648,187,343

INCOME TAX EXPENSE 276,537,617 177,289,675 162,294,204 150,937,000

PROFIT BEFORE MINORITY INTEREST 4,839,735,034 5,701,454,980 5,064,942,000 3,591,052,752

MINORITY INTEREST (56,978,663) (105,069,779) - -

NETPROFIT 4,782,756,371 5,596,385,201 5,064,942,000 3,591,052,752

BASICEARNINGSPERSHARE 3.27 3.83 3.46 2.45

WEIGHTEDAVERAGENUMBEROF

ORDINARYSHARES SHARES 1,462,865,035 1,462,865,035 1,462,865,035 1,462,865,035

DILUTEDEARNINGSPERSHARE (Note 17) - 3.83 - 2.45

DILUTEDWEIGHTEDAVERAGENUMBER

OFORDINARYSHARES SHARES - 1,462,881,204 - 1,462,881,204

114

Statements Of Changes In Shareholders’ Equity GLOW ENERGY PUBLIC COMPANY LIMITED AND SUBSIDIARIES For The Years Ended December 31, 2007 And 2006

Notes to the financial statements form an integral part of these statements

Consolidated

Issuedand Appropriated Unappropriated Total

paid-upshare Premiumon retained retained Minority shareholders’

capital ordinaryshares earnings earnings interest equity

BEGINNINGBALANCE,JANUARY1,2006 14,628,650,350 2,935,427,353 554,716,109 6,577,185,836 306,952,919 25,002,932,567

Share subscription received from

minority of a subsidiary - - - - 50,000,000 50,000,000

Capital decrease of a subsidiary - - - - (32,500,000) (32,500,000)

Dividend paid (Note 19) - - - (4,169,165,350) - (4,169,165,350)

Dividend paid to minority of a subsidiary - - - - (112,350,000) (112,350,000)

Net profit - - - 5,596,385,201 105,069,779 5,701,454,980

Appropriation of net profit for legal reserve - - 279,819,260 (279,819,260) - -

ENDINGBALANCE,DECEMBER31,2006 14,628,650,350 2,935,427,353 834,535,369 7,724,586,427 317,172,698 26,440,372,197

BEGINNINGBALANCE,JANUARY1,2007 14,628,650,350 2,935,427,353 834,535,369 7,724,586,427 317,172,698 26,440,372,197

Share subscription received from

minority of subsidiaries - - - - 87,056,000 87,056,000

Minority interest of a subsidiary

acquired by the Company - - - - (92,300,563) (92,300,563)

Dividend paid (Note 19) - - - (2,304,012,430) - (2,304,012,430)

Net profit - - - 4,782,756,371 56,978,663 4,839,735,034

Appropriation of net profit for legal reserve - - 253,247,100 (253,247,100) - -

ENDINGBALANCE,DECEMBER31,2007 14,628,650,350 2,935,427,353 1,087,782,469 9,950,083,268 368,906,798 28,970,850,238

Unit : Baht

115

Notes to the financial statements form an integral part of these statements

Statements Of Changes In Shareholders’ Equity (Continued) GLOW ENERGY PUBLIC COMPANY LIMITED AND SUBSIDIARIES For The Years Ended December 31, 2007 And 2006

TheSeparatefinancialstatements

Issuedand Appropriated Unappropriated Total

paid-upshare Premiumon retained retained shareholders’

capital ordinaryshares earnings earnings equity

Unit : Baht

BEGINNINGBALANCE,JANUARY1,2006

ASPREVIOUSLYREPORTED 14,628,650,350 2,935,427,353 554,716,109 6,577,185,836 24,695,979,648

Cumulative effects of change in accounting

policy (see Note 1.2) - 1,851,559,374 - (4,884,014,473) (3,032,455,099)

BEGINNINGBALANCE,JANUARY1,2006-RESTATED 14,628,650,350 4,786,986,727 554,716,109 1,693,171,363 21,663,524,549

Dividend paid (Note 19) - - - (4,169,165,350) (4,169,165,350)

Net profit - - - 3,591,052,752 3,591,052,752

Appropriation of net profit for legal reserve - - 279,819,260 (279,819,260) -

ENDINGBALANCE,DECEMBER31,2006-RESTATED 14,628,650,350 4,786,986,727 834,535,369 835,239,505 21,085,411,951

BEGINNINGBALANCE,JANUARY1,2007 14,628,650,350 2,935,427,353 834,535,369 7,724,586,427 26,123,199,499

ASPREVIOUSLYREPORTED

Cumulative effects of change in accounting

policy (see Note 1.2) - 1,851,559,374 - (6,889,346,922) (5,037,787,548)

BEGINNINGBALANCE,JANUARY1,200-RESTATED 14,628,650,350 4,786,986,727 834,535,369 835,239,505 21,085,411,951

Dividend paid (Note 19) - - - (2,304,012,430) (2,304,012,430)

Net profit - - - 5,064,942,000 5,064,942,000

Appropriation of net profit for legal reserve - - 253,247,100 (253,247,100) -

ENDINGBALANCE,DECEMBER31,2007 14,628,650,350 4,786,986,727 1,087,782,469 3,342,921,975 23,846,341,521

116

Notes to the financial statements form an integral part of these statements

Statements Of Cash Flows GLOW ENERGY PUBLIC COMPANY LIMITED AND SUBSIDIARIES For The Years Ended December 31, 2007 And 2006

Unit : Baht

Consolidated TheSeparatefinancialstatements ”Restated”

2007 2006 2007 2006

CASHFLOWSFROMOPERATINGACTIVITIES

Net profit 4,782,756,371 5,596,385,201 5,064,942,000 3,591,052,752

Items to reconcile net profit to net cash provided by

operating activities:

Minority interest 56,978,663 105,069,779 - -

Dividend received from subsidiaries - - (3,654,366,571) (2,271,260,714)

Provision for coal loss - 21,000,000 - -

Depreciation 2,924,878,620 2,978,025,843 554,274,525 526,170,398

Amortization of other non-current assets 47,054,343 45,164,032 20,589,842 4,900,229

Amortization of deferred bond issue expenses 13,058,714 12,565,503 13,058,714 12,565,503

Write-off of inventories and other non-current assets 26,900 4,117,245 14,350 691,926

Write-off of fixed assets - 50,922,712 - -

Impairment loss of fixed assets (reversal) (66,520,000) 66,520,000 - -

Loss (gain) on disposals of fixed assets 63,466,411 3,668,137 75,915 (18,425)

Reversal of provision for fire loss - (9,926,550) - -

Amortization of other non-current liabilities (62,538,956) (53,393,356) (57,538,004) (50,621,081)

Exchange loss (gain) (526,442,373) (1,141,064,053) 2,834,998 5,728,009

Reversal of provision for repurchase of

convertible debentures (410,750) - (410,750) -

Adjustment of finance lease payable (19,073,960) - - -

Excess of minority interest paid to acquire

a subsidiary 3,330,499 - - -

Amortization of premium (discount) on forward

foreign exchange contracts (1,776,043) 7,977 - 7,977

Profit from operations before changes

in operating assets and liabilities 7,214,788,439 7,679,062,470 1,943,475,019 1,819,216,574

Operating assets (increase) decrease

Trade accounts receivable 195,525,777 (133,346,874) 5,609,777 (24,119,655)

Advances to related parties (2,767,890) 17,461,455 (146,128,235) 18,296,090

Interest receivable from related parties - - - 45,680,055

Inventories (23,451,034) 19,397,838 (6,759,244) 63,603,801

Prepaid expenses 18,618,003 10,974,715 6,742,869 3,584,596

Advance payment 86,801,248 (43,469,674) (1,253,787) (1,531,450)

Other current assets (8,821,925) 304,957,856 (14,986,651) 27,479,354

Other non-current assets (68,522,777) (57,961,961) (4,078,005) (337,805)

117

Notes to the financial statements form an integral part of these statements

Unit : Baht

Consolidated TheSeparatefinancialstatements ”Restated”

2007 2006 2007 2006

CASHFLOWSFROMOPERATINGACTIVITIES(Continued)

Operating liabilities increase (decrease)

Trade accounts payable (1,029,167,879) 266,965,035 (556,344,954) 142,600,427

Advances from related parties 1,311,810 (9,461,520) 38,271,921 (70,048)

Other payables 5,642,037 28,814,118 7,411,698 2,508,807

Accrued interest expense (46,067,366) (19,565,641) (38,485,158) (11,434,216)

Accrued expenses (26,443,434) (17,821,328) 19,808,159 31,172,082

Value added tax payable (77,630,891) 26,119,645 (9,091,627) 3,298,352

Other current liabilities 50,460,403 76,739,811 9,912,771 49,874,703

Net cash provided by operating activities 6,290,274,521 8,148,865,945 1,254,104,553 2,169,821,667

CASHFLOWSFROMINVESTINGACTIVITIES

Withdrawal from (deposit in) Debt Service/ Maintenance

Accrual Accounts 31,618,815 (1,802,735,157) (2,722,670) (650,875,854)

Cash received from repayment of

long-term loans to related parties - - - 2,835,000,000

Cash paid for investments in subsidiaries (95,631,062) - (284,215,062) (25,000,000)

Dividends received from subsidiaries - - 3,654,366,571 2,271,260,714

Cash paid for purchase of property, plant

and equipment (2,632,829,835) (865,992,296) (1,731,503,187) (463,023,897)

Cash paid for purchase of assets from a subsidiary - - (513,003,535) -

Proceeds from sale of fixed assets 22,788,751 2,990,173 1,622,010 1,589,866

Advance received from sale of fixed assets - 2,000,000 - -

Advance payment for purchase / right transfer of land (84,500,000) (34,350,000) - (16,250,000)

Payment of assignment fee for land leasehold right (150,911,992) - (37,473,225) -

Proceeds from long-term right to use of assets - 31,725,626 - 9,416,167

Net cash provided by (used in) investing activities (2,909,465,323) (2,666,361,654) 1,087,070,902 3,962,116,996

Statements Of Cash Flows (Continued) GLOW ENERGY PUBLIC COMPANY LIMITED AND SUBSIDIARIES For The Years Ended December 31, 2007 And 2006

118

Notes to the financial statements form an integral part of these statements

Unit : Baht

Consolidated TheSeparatefinancialstatements ”Restated”

2007 2006 2007 2006

CASHFLOWSFROMFINANCINGACTIVITIES

Finance lease payables decrease (41,428,382) (13,118,864) (4,455,130) (5,232,735)

Proceeds of long-term loans from financial institutions - 2,526,596,300 - -

Cash received from the issue of new debentures 2,000,000,000 - 2,000,000,000 -

Cash paid for debentures issue expenses (8,009,741) - (8,009,741) -

Cash paid for front-end fee of new loan (4,054,874) - (4,054,874) -

Long-term loans repayment (830,885,050) (4,838,596,705) - (2,000,000,000)

Repayment of debentures (2,600,000,000) (650,000,000) (2,600,000,000) (650,000,000)

Repayment of convertible debentures (1,076,700) - (1,076,700) -

Dividend paid (2,304,012,430) (4,169,165,350) (2,304,012,430) (4,169,165,350)

Share subscription received from minority

of subsidiaries 87,056,000 50,000,000 - -

Cash paid to minority for capital decrease

of a subsidiary - (32,500,000) - -

Dividend paid to minority of a subsidiary - (112,350,000) - -

Net cash used in financing activities (3,702,411,177) (7,239,134,619) (2,921,608,875) (6,824,398,085)

Unrealized exchange loss of cash and cash equivalents (3,793,409) (10,226,968) (3,262,205) (6,621,066)

Net decrease in cash and cash equivalents (325,395,388) (1,766,857,296) (583,695,625) (699,080,488)

Cash and cash equivalents as at January 1, 4,367,969,055 6,134,826,351 771,124,225 1,470,204,713

CashandcashequivalentsasatDecember31,(Note 5) 4,042,573,667 4,367,969,055 187,428,600 771,124,225

Statements Of Cash Flows (Continued) GLOW ENERGY PUBLIC COMPANY LIMITED AND SUBSIDIARIES For The Years Ended December 31, 2007 And 2006

119

Notes to the financial statements GLOW ENERGY PUBLIC COMPANY LIMITED AND SUBSIDIARIES For The Years Ended December 31, 2007 And 2006

1. OPERATIONS OF THE COMPANY AND SUBSIDIARIES 1.1 The Company’s general information Glow Energy Public Company Limited “the Company” registered as a public limited company under Thai laws on September 1, 1995, and was listed on the Stock Exchange of Thailand (SET) in February 1996 until August 2002 and listed again on April 21, 2005. The Company operates in Thailand and principally engages in the generation and distribution of electricity, steam and water for industrial use. The Company’s office is located at 195 Empire Tower, 38th Floor - Park Wing, South Sathorn Road, Yannawa, Sathorn, Bangkok. As at December 31, 2007 and 2006, the Company’s major shareholder is Suez Energy (Thailand) Company Limited, holding 44.1 percent of the Company’s share capital. On January 27, 2006, Suez-Tractebel Energy Holdings Cooperatieve U.A. (STEH), holding 1,010,976,033 shares of the Company (or approximately 69.1 percent of the Company’s share capital), transferred 645,259,773 shares of the Company (or approximately 44.1 percent of the Company’s share capital) to its wholly owned subsidiary, Suez Energy (Thailand) Company Limited (Suez Energy Thailand). The transaction occurred as part of a Suez-Tractebel S.A. (the parent company of STEH) internal shareholding restructuring, pursuant to an agreement entered into between STEH and Suez Energy Thailand. As at December 31, 2007 and 2006, the Company had total employees of 54 persons and 47 persons, respectively. The employee costs for the years ended December 31, 2007 and 2006 were Baht 59.4 million and Baht 62.3 million, respectively. 1.2 Change in accounting policy For the year ended December 31, 2007, the Company changed its accounting policy for investments in subsidiaries from the equity method to the cost method to comply with the Notification of Federation of Accounting Professions No. 26/2549 (Amendment No. 1) regarding Thai Accounting Standard No. 44 “Consolidated Financial Statements and Accounting for Investment in Subsidiaries” and the Notification of Federation of Accounting Professions No. 32/2549 regarding the explanation for Thai Accounting Standard No. 44 “Consolidated Financial Statements and Accounting for Investment in Subsidiaries” (paragraph 27) and Thai Accounting Standard No. 45 “Accounting for Investment in Associates” (paragraph 11). This change in accounting policy has been accounted for retroactively in the separate financial statements as if the Company had recorded such investments by the cost method according to the new accounting policy continuously. Therefore, the comparative information for the separate statement of income for the year ended December 31, 2006 and the balance sheet as at December 31, 2006 has been restated to conform to the new accounting policy, of which the effects are as follows:

120

Unit : Baht

December31,2006

Balance sheet

Decrease in investments in subsidiaries 5,037,787,548

Increase in premium on ordinary shares 1,851,559,374

Decrease in retained earnings 6,889,346,922

Fortheyearended

December31,2006

Statement of income

Decrease in share of profits from investments using the equity method 4,276,593,163

Increase in dividend income 2,271,260,714

Decrease in net profit 2,005,332,449

Decrease in basic earnings per share 1.38

Decrease in diluted earnings per share 1.38

121

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2. BASIS FOR PRESENTATION OF THE FINANCIAL STATEMENTS 2.1 The consolidated and the separate financial statements have been prepared in accordance with the Regulation of The Stock Exchange of Thailand dated January 22, 2001, regarding the preparation and submission financial statements and reports for the financial position and result of operations of the listed companies, and in accordance with accounting standards and practices generally accepted in Thailand. The brief particulars in the financial statements are shown in accordance with the Notification of the Department of Commercial Registration (currently the Department of Business Development) dated September 14, 2001 regarding “The Brief Particulars in the Financial Statements (B.E. 2544)”. 2.2 The Federation of Accounting Professions has issued the Notifications of Federation of Accounting Professions No. 9/2550 dated May 2, 2007, No. 38/2550 dated September 21, 2007 and No. 62/2550 dated December 7, 2007 regarding the following accounting standards that were announced in the Royal Gazette, but were not in effect in 2007. TAS 25 (Revised 2007) Cash Flow Statements TAS 29 (Revised 2007) Leases TAS 31 (Revised 2007) Inventories TAS 33 (Revised 2007) Borrowing Costs TAS 35 (Revised 2007) Presentation of Financial Statements TAS 39 (Revised 2007) Accounting Policies, Changes in Accounting Estimates and Errors TAS 41 (Revised 2007) Interim Financial Reporting TAS 43 (Revised 2007) Business Combination TAS 49 (Revised 2007) Construction Contracts TAS 51 Intangible Assets The above accounting standards will supersede previously issued accounting standards. The management has assessed the impact of these accounting standards, when they are effective, for financial statements for fiscal periods beginning on or after January 1, 2008 and do not expect them to have a material effect on the Company’s financial statements. 2.3 The consolidated financial statements included the accounts of the Company and its subsidiaries, after elimination of intercompany transactions, of which the percentage of shareholding is as follows: %ofShareholding 2007 2006 Owned by the Company Glow Company Limited 100 100 Glow SPP 2 Company Limited 100 100 Glow SPP 3 Company Limited 100 100 Glow IPP 3 Company Limited (formerly Glow Hemaraj Energy Company Limited) 100 50 Glow IPP 2 Holding Company Limited 100 - Owned by Glow Company Limited Glow SPP 1 Company Limited 100 100 Glow IPP Company Limited 95 95 Glow Demin Water Company Limited 100 100

Owned by Glow IPP 2 Holding Company Limited GHECO-One Company Limited 65 -

123

3. SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies of the Company and subsidiaries are summarized below: 3.1 Cash and cash equivalents Cash and cash equivalents are cash on hand, deposits at banks’ saving accounts and current accounts, and short-term highly liquid investments with maturities within three months. 3.2 Recognition of revenues Revenues from the sales of goods represent the invoiced value, excluding value added tax, of products supplied after deducting discounts, which is estimated based on annual purchase volumes of each customer and calculated by the percentage of net sales as specified in the agreement. Revenues from rendering of services are recognized on an accrual basis. 3.3 Allowance for doubtful accounts Allowance for doubtful accounts are based on estimated uncollectible debts. 3.4 Inventories Inventories consisting of raw materials, spare parts, and supplies for machines are valued at the lower of cost and net realizable value. Cost is determined by weighted average method. Provision is made, when necessary, for obsolete and slow moving inventories based on the Company’s experience. 3.5 Property, plant and equipment Property is stated at cost. Plant and equipment are stated at cost less accumulated depreciation. Depreciation is calculated by reference to cost of assets on a straight-line basis over the following estimated useful lives: Years Plant and parts of construction in progress which are already in operation 2.2 - 30 Leasehold improvements 5 - 20 Machinery, tools and plant equipment 5 - 20 Furniture, fixtures and office equipment 3, 5, 10 Motor vehicles 5 3.6 Construction in progress Construction in progress includes construction and other related costs which management has determined to be directly related to constructing the asset or bringing it to working condition. Borrowing costs that are directly attributable to loans for construction and incurred during construction period are capitalized as part of the cost of construction in progress.

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3.7 Borrowing costs Interest and exchange gains/losses incurred before commencement of trading activities and related to loans obtained for construction of the power plant and acquisition of machinery are capitalized as part of the cost of assets, but to a level not exceeding the interest cost that would be paid assuming the loan were a Thai Baht loan of which the conditions and maturity date were similar to those of the foreign currency loans. 3.8 Amortization of other non-current assets Deferred right to use grid system and transmission line are amortized on a straight-line basis over the period of power purchase agreements. Deferred land lease fee is amortized on a straight-line basis over the period of the lease agreement from the date of commencing commercial operations. Deferred land leasehold right is amortized on a straight-line basis over the period of the lease agreement of 30 years. Deferred financial service fees are amortized on a straight-line basis over the period of related agreements. Deferred right of pipe rack usage is amortized on a straight-line basis over the period of the lease agreement of 15 years. 3.9 Investments Long-term investments in other company, which are non-marketable equity securities and held as other investments are valued at cost. The Company recognizes loss on impairment of securities in the statement of income in the period in which it incurs. 3.10 Long-term lease - Operating lease Leases in which substantially all the risks and rewards of ownership of assets remain with the lessor are accounted for as operating leases. Rentals applicable to such operating leases are charged to the statement of income over the lease term. - Finance lease Leases in which substantially all the risks and rewards of ownership, other than legal title, are transferred to the Company and its subsidiaries are accounted for as finance leases. At inception, the fair value of the leased assets is recorded together with the obligation. The leased assets are depreciated using the straight-line method over their estimated useful lives. Interest or financial charge and depreciation are recognized as expenses in the statement of income. 3.11 Foreign currencies Transactions denominated in foreign currencies are translated into Baht at rates of exchange prevailing at the transaction dates. All balances of monetary assets and liabilities in foreign currencies and forward foreign exchange contracts at the end of the year are converted at the reference exchange rates established by the Bank of Thailand at the end of the year. Both realized and unrealized foreign exchange gains or losses are recognized as revenues or expenses in the statements of income.

125

3.12 Financial instruments The Company and its subsidiaries entered into Interest Rate Swap Agreements, Forward Foreign Exchange Contracts and Currency Swap Agreements in asset and liability management activities to control exposure to fluctuations in interest and foreign exchange rates. Further details of financial instruments are disclosed in Note 22. Income and expense from interest rate swap agreements used to manage interest rate exposures are recognized as adjustments to interest income and expense in statements of income. Such adjustments that are attributable to construction are capitalized as part of construction in progress. Gains and losses on forward foreign exchange contracts and currency swap agreements designated as hedges of existing assets and liabilities are recognized as income or expense in the statements of income. Amounts to be paid and received are offset in the balance sheet. Premiums or discounts on forward foreign exchange contracts are amortized to revenues or expenses over the contract period. The Company and its subsidiaries have no policy to speculate in or engage in the trading of any derivative financial instruments. 3.13 Provident fund The Company, the subsidiaries and their employees jointly registered a provident fund scheme under Provident Fund Act B.E. 2530. The funds are contributed by the employees, the Company and its subsidiaries. Company’sname Managedby Glow Energy Public Company Limited Bank of Ayudhaya Public Company Limited. Glow Company Limited TISCO Assets Management Co., Ltd., and Bank of Ayudhaya Public Company Limited. Glow SPP 1 Company Limited TISCO Assets Management Co., Ltd. Glow SPP 2 Company Limited Bank of Ayudhaya Public Company Limited. Glow SPP 3 Company Limited Bank of Ayudhaya Public Company Limited. Glow IPP Company Limited TISCO Assets Management Co., Ltd. The above funds will be paid to the employees upon termination in accordance with the rules of the provident fund. Contributions for employees by the Company, under the provident fund scheme, are recorded as expenses when incurred. 3.14 Income tax expense

126

Income tax expense is based on tax paid and accrued for the year. 3.15 Earnings per share Basic earnings per share are calculated by dividing net profit for the year by the weighted average number of ordinary shares issued during the year. Diluted earnings per share are calculated by dividing net profit for the year, after adjusting for the effect of transactions relating to dilutive potential ordinary shares, by the total sum of the weighted average number of ordinary shares issued during the year plus the weighted average number of ordinary shares to be issued for conversion of all dilutive potential ordinary shares into ordinary shares. 3.16 Use of accounting estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results may differ from those estimates. 4. SUPPLEMENTAL CASH FLOWS INFORMATION 4.1 Cash paid for interest and income tax for the years ended December 31, 2007 and 2006 are as follows: 4.2 Accounts payable – acquisition of assets for the years ended December 31, 2007 and 2006 are as follows: 4.3 In October 2007, the Company entered into a new Facility Agreement to obtain a Yen 8,100 million loan and fully prepaid the previous Yen loan for the same amount. These transactions had no impact on cash inflows and outflows (see Note 14).

Interest 1,158,686,506 1,305,145,266 590,835,075 659,621,558

Income tax 281,147,422 170,779,693 177,612,052 96,777,110

Unit : Baht

Accounts payable – acquisition 106,660,955 478,342,211 19,524,759 296,387,509

of assets brought forward

Add Purchase of fixed assets 2,672,724,517 515,631,206 1,780,798,494 194,587,390

Unrealized exchange gain (1,600,676) (8,521,439) (353,917) (744,743)

Less Cash payment (2,632,829,835) (865,992,296) (1,731,503,187) (463,023,897)

Assets under finance lease (13,598,864) (12,798,727) (2,592,000) (7,681,500)

Accounts payable – acquisition

of assets carried forward 131,356,097 106,660,955 65,874,149 19,524,759

Unit : Baht

Consolidated TheSeparatefinancialstatements

2007 2006 2007 2006

Consolidated TheSeparatefinancialstatements

2007 2006 2007 2006

127

5. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at December 31, 2007 and 2006 consist of: As at December 31, 2007 and 2006, cash and cash equivalents of Glow IPP Company Limited of Baht 2,127.5 million and Baht 1,232.1 million, respectively, are pledged as collateral to secure credit facilities obtained from financial institutions. However, the pledged accounts can be withdrawn for use as working capital required in the normal course of its business. As at December 31, 2007, bank deposits in saving accounts, bills of exchange and short-term debentures carry interest between 0.125-4.25 percent per annum (2006: 0.5-5.1 percent per annum). 6. CURRENT INVESTMENTS Current investments as at December 31, 2007 and 2006 consist of: Current investments of the Company represent bank deposits in Debt Service Accrual Account, which is for the purpose of repayment of the Company’s debentures. As at December 31, 2007 and 2006, current investments of Glow IPP Company Limited of Baht 1,056.5 million and Baht 1,119.6 million, respectively, including Global Liquidity Fund invested in overseas of USD 11.9 million, are pledged as collateral to secure credit facilities obtained from financial institutions and are restricted for repayment of long-terms loans and payment of major maintenance.

Unit : Baht

Unit : Baht

Consolidated TheSeparatefinancialstatements

2007 2006 2007 2006

Cash 762,735 768,921 46,016 46,142

Bank deposits in current accounts 772,811 746,091 512,811 528,798

Bank deposits in saving accounts 2,691,455,549 2,468,181,930 186,869,773 270,989,990

Bills of exchange 1,349,582,572 199,770,510 - -

Short-term debentures - 1,698,501,603 - 499,559,295

4,042,573,667 4,367,969,055 187,428,600 771,124,225

Consolidated TheSeparatefinancialstatements

2007 2006 2007 2006

Bank deposits in saving accounts 660,826,005 1,002,649,331 653,598,524 650,875,854

Bills of exchange 650,000,000 200,000,000 - -

Fixed deposits - 140,000,000 - -

Global Liquidity Fund 399,267,610 427,870,450 - -

1,710,093,615 1,770,519,781 653,598,524 650,875,854

128

7. TRADE ACCOUNTS RECEIVABLE, NET Trade accounts receivable, net as at December 31, 2007 and 2006 are classified by aging as follows: 8. INVENTORIES, NET Inventories, net as at December 31, 2007 and 2006 consist of:

Trade accounts receivable, other companies

Current 4,599,979,273 4,796,882,675 1,238,237,677 1,240,860,291

Past due

Less than 3 months 2,800,407 6,067,334 - 44,647

3 - 6 months - 2,856,070 - -

6 - 12 months 1,163,496 8,696,768 - 2,813,534

More than 12 months 33,113,900 18,727,605 44,647 118,239

4,637,057,076 4,833,230,452 1,238,282,324 1,243,836,711

Less Provision for contract discounts (69,045,872) (69,491,467) (64,853,222) (64,681,416)

Allowance for doubtful accounts - (118,239) - (118,239)

4,568,011,204 4,763,620,746 1,173,429,102 1,179,037,056

Trade accounts receivable from related parties

Current 1,222,490 1,138,725 33,427,374 10,858,972

Past due

Less than 3 months - - - 22,570,225

Total trade accounts receivable, net 4,569,233,694 4,764,759,471 1,206,856,476 1,212,466,253

Unit : Baht

Unit : Baht

Consolidated TheSeparatefinancialstatements

2007 2006 2007 2006

Consolidated TheSeparatefinancialstatements

2007 2006 2007 2006

Raw material - coal 302,982,392 368,653,934 - -

Raw material - oil 220,386,699 219,769,454 - -

Spare parts and supplies for machines 1,161,885,665 1,076,587,184 245,045,789 217,425,747

1,685,254,756 1,665,010,572 245,045,789 217,425,747

Less Allowance for obsolete inventories (24,293,714) (27,035,971) - -

Total inventories, net 1,660,961,042 1,637,974,601 245,045,789 217,425,747

129

9. INVESTMENTS IN SUBSIDIARIES USING THE COST METHOD Investments in subsidiaries using the cost method in the separate financial statements as at December 31, 2007 and 2006 are as follows: In 2007, the Board of Directors’ meeting of the subsidiaries passed a resolution to distribute interim dividends detailed as follows: On April 25, 2007, the annual general shareholders’ meetings of the subsidiaries passed a resolution to distribute annual dividends for the year 2006. The dividends were paid as interim dividends following the resolutions of the Board of Directors’ meetings of the subsidiaries detailed as follows: On March 14, 2006, the extraordinary shareholders’ meeting of Glow SPP 1 Company Limited, wholly owned subsidiary of Glow Company Limited, passed a special resolution to increase the registered capital from Baht 800 million to Baht 2,150 million by issuing 135 million new ordinary shares with the par value of Baht 10 each. Baht 550 million of the newly issued shares together with the remaining unpaid capital of Baht 12 million were paid by Glow Company Limited on February 27, 2006. The balance of Baht 800 million of the newly issued shares was paid on May 16, 2006.

Unit : Baht

Paid-up Portionof “Restated” Company’sname Capital Investment(%) 2007 2006

Glow Company Limited 4,401,668,111 100 7,114,824,403 7,114,824,403

Glow SPP 2 Company Limited 4,941,534,880 100 4,941,534,760 4,941,534,760

Glow SPP 3 Company Limited 7,373,389,550 100 7,379,374,488 7,379,374,488

Glow IPP 3 Company Limited 240,140,000 100 228,715,092 55,000,030

(formerly Glow Hemaraj

Energy Company Limited)

Glow IPP 2 Holding Company Limited 110,500,000 100 110,500,000 -

Total 19,774,948,743 19,490,733,681

Company’sname Meetingdate Bahtper Amount Dividend share (MillionBaht) paymentdate

Glow SPP 2 Company Limited November 12, 2007 0.45 222.4 November 27, 2007

Glow Company Limited August 9, 2007 0.45 198.1 August 29, 2007

Glow SPP 1 Company Limited August 9, 2007 0.93 200.0 August 29, 2007

Glow SPP 3 Company Limited August 9, 2007 1.93 1,423.1 August 29, 2007

Glow Company Limited May 10, 2007 0.68 299.3 May 29, 2007

Glow SPP 1 Company Limited May 10, 2007 0.70 150.5 May 29, 2007

Glow SPP 3 Company Limited May 10, 2007 0.55 405.5 May 29, 2007

Company’sname Meetingdate Bahtper Amount Dividend share (MillionBaht) paymentdate

Glow SPP 3 Company Limited February 28, 2007 1.50 1,106.0 March 12, 2007

Glow Company Limited November 8, 2006 2.73 1,201.7 December 25, 2006

Glow SPP 1 Company Limited November 8, 2006 3.95 849.3 December 25, 2006

Glow Company Limited September 15, 2006 2.43 1,069.6 October 2, 2006

Glow SPP 1 Company Limited September 15, 2006 1.16 249.4 October 2, 2006

Glow IPP Company Limited February 17, 2006 1.54 539.0 March 7, 2006

Glow IPP Company Limited February 17, 2006 4.88 1,708.0 May 16, 2006

130

On March 14, 2006, the extraordinary shareholders’ meeting of Glow IPP Company Limited passed a special resolution to decrease the registered capital from Baht 3,500 million to Baht 2,850 million by decreasing of an aggregate number of 65 million ordinary shares with the par value of Baht 10 per share. The subsidiary registered the capital decrease with the Department of Business Development on June 22, 2006. Glow IPP 3 Company Limited (formerly Glow Hemaraj Energy Company Limited) On December 20, 2005, the extraordinary shareholders’ meeting of Glow IPP 3 Company Limited (formerly Glow Hemaraj Energy Company Limited) passed a resolution to increase the registered capital from Baht 10 million to Baht 110 million by issuing 10 million new ordinary shares with the par value of Baht 10 each. On December 21, 2005, the subsidiary sent a notice to the Company to call for payment of the capital increase shares as the first installment of Baht 25 million within December 23, 2005 and the second installment of Baht 25 million within January 20, 2006. The Company paid for the first and second installment of the shares on December 23, 2005 and February 1, 2006, respectively. On April 28, 2006, the annual general shareholders’ meeting of the subsidiary passed a special resolution for such capital increase. The subsidiary registered the capital increase with the Department of Business Development on May 10, 2006. On April 11, 2007, the extraordinary general shareholders’ meeting of the subsidiary passed a special resolution to increase the registered capital from Baht 110 million to Baht 380 million by the issuance of 27 million new ordinary shares with the par value of Baht 10 each. 60 percent of the newly issued shares (16.2 million shares) were subscribed by the Company. The subsidiary registered the capital increase with the Department of Business Development on August 30, 2007. On May 21, 2007, the subsidiary sent a notice to the Company to call for payment of the capital increase in the following sequence: - Baht 78.1 million within June 2007 - Baht 78.1 million within February 2008 - Baht 2.9 million within April 2008 - Baht 2.9 million within June 2008 The Company paid for the 1st installment of Baht 78.1 million on June 29, 2007. On August 15, 2007, the Company purchased 1.1 million shares of the subsidiary from Hemaraj Land and Development Public Company Limited at par value of Baht 10 each, resulting in a change of the shareholding proportion of the Company from 50 percent to 60 percent. The Company has already paid in advance for the shares purchase totaling Baht 11 million on June 29, 2007. On October 15, 2007, the Company entered into a sale and purchase agreement to purchase 15,199,997 shares of the subsidiary from Hemaraj Land and Development Public Company Limited at the price of Baht 96.0 million, resulting in a change of the shareholding proportion of the Company from 60 percent to 100 percent. Baht 64.5 million was paid on October 15, 2007, whereby the remaining Baht 31.5 million will be paid depending on certain conditions of the agreement. However, the purchase price was adjusted and the final remaining amount of Baht 20.1 million was paid in December 2007. On October 31, 2007, the extraordinary general shareholders’ meeting of the subsidiary passed a resolution to change its name from “Glow Hemaraj Energy Company Limited” to “Glow IPP 3 Company Limited”. The subsidiary registered the name change with the Department of Business Development on December 14, 2007.

131

GHECO-One Company Limited GHECO-One Company Limited was also established under the Joint Development and Venture Agreement dated March 18, 2005 made by the Company and Hemaraj Land and Development Public Company Limited. The subsidiary registered as a limited company in Thailand on April 27, 2007 with Baht 10 million registered capital, 65 percent of which was held by the Company. On May 21, 2007, the extraordinary general shareholders’ meeting of the subsidiary passed a special resolution to increase the registered capital from Baht 10 million to Baht 100 million by issuing 9 million new ordinary shares with the par value of Baht 10 each. The subsidiary registered the capital increase with the Department of Business Development on June 4, 2007. The Company has paid for the called increase shares of Baht 26 million on July 6, 2007. On October 13, 2007, the Company and Hemaraj Land and Development Public Company Limited entered into a shareholders’ agreement, which superseded the Joint Development and Venture agreement dated March 18, 2005, in order to regulate their responsibilities with respect to the ownership and management of GHECO-One Company Limited. On October 16, 2007, the Company entered into a share purchase agreement to sell 6,499,996 shares of GHECO- One Company Limited to Glow IPP 2 Holding Company Limited at Baht 32.5 million. Glow IPP 2 Holding Company Limited Glow IPP 2 Holding Company Limited registered as a limited company in Thailand on October 16, 2007 with Baht 1 million registered capital. On December 6, 2007, the annual general shareholders’ meeting of the subsidiary passed a resolution to increase the registered capital from Baht 1 million to Baht 220 million by issuing 2.19 million new ordinary shares with the par value of Baht 100 each. The subsidiary registered the capital increase with the Department of Business Development on December 25, 2007 and called for payment of the increase shares at Baht 50 per share. 10. LONG-TERM LOANS TO RELATED PARTIES On September 29, 2003, the Company entered into Phase III Project Shareholder Loan Agreement with Glow SPP2 Company Limited and Glow SPP 3 Company Limited for loans granted to them totaling Baht 13,159 million in order to prepay all of their long-term loans outstanding under the Master Agreement, Offshore Credit Agreement, Onshore Credit Agreement dated November 27, 1997, on September 30, 2003. The loans consist of Tranche A and Tranche B of Baht 13,000 million and Baht 159 million, respectively, and carry interest at a certain percentage per annum. The loan under Tranche A is repayable before each date on which a principal payment must be made in respect of the debentures of the Company. The loan under Tranche B is repayable under the condition specified in the agreement. The Company had received full repayment of the Tranche B loan from both subsidiaries on October 3, 2003. On December 25, 2006, the Company entered into a Novation Agreement with Glow SPP 1 Company Limited and Glow SPP 3 Company Limited, whereby Glow SPP 3 Company Limited transferred part of the above Tranche A loan of Baht 850 million, including interest, obligations and liabilities in connection with the transferred loan to Glow SPP 1 Company Limited. Glow SPP 1 Company Limited paid a novation fee of Baht 107.7 million to Glow SPP 3 Company Limited on December 25, 2006.

132

11. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consist of:

Unit : Baht

Consolidated

Furniture,

Machinery, fixturesand

Leasehold toolsand office Motor Construction

Land Plant improvement equipment equipment vehicles inprogress Total

Cost

December 31, 2006 291,865,672 58,785,501,376 153,770,956 300,564,984 220,641,112 79,006,915 134,459,864 59,965,810,879

Purchases - 333,232,870 187,000 16,799,382 30,265,591 13,621,664 2,278,618,010 2,672,724,517

Adjustment - 185,000,000 - - - - 44,489 185,044,489

Transfer - 250,970,843 2,280,000 325,000 3,773,389 - (257,349,232) -

Disposals - (159,717,301) (986,079) (43,786) (2,192,212) (6,281,365) - (169,220,743)

December 31, 2007 291,865,672 59,394,987,788 155,251,877 317,645,580 252,487,880 86,347,214 2,155,773,131 62,654,359,142

Accumulated depreciation

December 31, 2006 - 18,466,005,045 37,079,255 199,910,642 155,835,784 48,404,931 - 18,907,235,657

Depreciation for the year - 2,856,220,639 8,824,147 25,663,478 20,838,332 13,332,024 - 2,924,878,620

Depreciation – disposals - (65,236,759) (402,371) (43,780) (2,064,448) (6,281,364) - (74,028,722)

Depreciation – transfer - - - - 267,128 (267,128) - -

Depreciation – adjustment - 34,599,237 - - - - - 34,599,237

December 31, 2007 - 21,291,588,162 45,501,031 225,530,340 174,876,796 55,188,463 - 21,792,684,792

Provision for impairment

December 31, 2006 - 66,520,000 - - - - - 66,520,000

Reversal - (66,520,000) - - - - - (66,520,000)

December 31, 2007 - - - - - - - -

Net book value

December 31, 2006 291,865,672 40,252,976,331 116,691,701 100,654,342 64,805,328 30,601,984 134,459,864 40,992,055,222

December 31, 2007 291,865,672 38,103,399,626 109,750,846 92,115,240 77,611,084 31,158,751 2,155,773,131 40,861,674,350

Depreciation for the years ended December 31,

2007 2,924,878,620

2006 2,978,025,843

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All of the land, construction, machinery and equipment of the power plant of Glow IPP Company Limited and Glow SPP 1 Company Limited have been mortgaged to secure credit facilities obtained from financial institutions. In May 2007, Glow SPP 1 Company Limited has already released the collateral as its loans were fully prepaid in May 2006. In June 2007, the Company purchased phase 1 water plant from Glow SPP 3 Company Limited to facilitate the operation of the Company (see Note 23). As at December 31, 2007 and 2006, cost of property, plant and equipment in the consolidated financial statements that was fully depreciated but still in use was Baht 4,535.1 million and Baht 3,387.0 million, respectively.

TheSeparatefinancialstatements

Furniture,

Machinery, fixturesand

Leasehold toolsand office Motor Construction

Plant improvement equipment equipment vehicles inprogress Total

Cost

December 31, 2006 12,594,622,526 75,858,224 202,538,136 54,492,259 25,806,586 28,311,536 12,981,629,267

Purchases 104,929,325 - 618,375 4,316,518 2,592,000 1,668,342,276 1,780,798,494

Purchase assets of phase 1 483,312,941 - 16 114,310 - 1,632,088 485,059,355

Adjustment - - - - - 44,489 44,489

Transfer 13,226,021 - - - - (13,226,021) -

Disposals (1,657,500) (986,079) - (663,656) (3,982,300) - (7,289,535)

December 31, 2007 13,194,433,313 74,872,145 203,156,527 58,259,431 24,416,286 1,685,104,368 15,240,242,070

Accumulated depreciation

December 31, 2006 4,258,737,150 4,704,752 125,930,319 43,118,330 14,981,236 - 4,447,471,787

Depreciation for the year 525,070,976 3,721,235 16,975,188 4,266,164 4,240,962 - 554,274,525

Depreciation – disposals (620,825) (402,371) - (586,116) (3,982,298) - (5,591,610)

December 31, 2007 4,783,187,301 8,023,616 142,905,507 46,798,378 15,239,900 - 4,996,154,702

Net book value

December 31, 2006 8,335,885,376 71,153,472 76,607,817 11,373,929 10,825,350 28,311,536 8,534,157,480

December 31, 2007 8,411,246,012 66,848,529 60,251,020 11,461,053 9,176,386 1,685,104,368 10,244,087,368

Depreciation for the years ended December 31,

2007 554,274,525

2006 526,170,398

Unit : Baht

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12. OTHER NON-CURRENT ASSETS, NET Other non-current assets, net as at December 31, 2007 and 2006 consist of: 12.1 Deferred right to use grid system represents right to use grid system of Glow SPP 2 Company Limited and Glow SPP 3 Company Limited, whereby on September 27, 2000, both subsidiaries handed over and transferred the ownership of certain parts of the grid system and granted the right to use part of grid system to Electricity Generating Authority of Thailand (EGAT). The transfer of the ownership was made in order to comply with the power purchase agreement, under the regulation of purchasing electricity from small producers. The net book value of the transferred parts of the grid system at the transfer date was Baht 242.8 million. 12.2 Deferred right to use transmission line represents the costs paid by Glow IPP Company Limited for construction of transmission line in order to comply with the power purchase agreement, under the regulation of purchasing electricity from independent producers. The ownership of the transmission line belongs to EGAT and the subsidiary has the right to use the transmission line over the period of the power purchase agreement of 25 years. 12.3 Deferred land lease represents fees paid by Glow SPP 2 Company Limited and Glow SPP 3 Company Limited under the co-leasehold contract for the land at industrial harbour in Map Ta Phut Industrial Estate for a period of 28 years, from December 1, 1996 to November 30, 2024 in order to construct power plant project - Phase III. The proprietary rights on construction still belong to the subsidiaries after the expiration of the contract.

Unit : Baht

Consolidated TheSeparatefinancialstatements

2007 2006 2007 2006

Deferred right to use grid system 163,767,498 174,675,381 - -

Deferred right to use transmission line 140,818,170 147,825,481 - -

Deferred land lease 93,530,889 99,056,390 - -

Deferred land leasehold right 177,772,227 - 37,428,736 -

Deferred financial service fee 8,309,436 19,995,413 3,949,200 15,371,528

Deferred securities underwriting fee - 4,564,510 - 4,564,510

Project development costs 81,598,954 35,110,921 - -

Refundable deposits 21,176,196 8,139,889 4,769,641 705,986

Others 19,867,613 86,942,786 4,573,070 5,121,200

Total other non-current assets, net 706,840,983 576,310,771 50,720,647 25,763,224

Amortization for the years ended December 31, 47,054,343 45,164,032 20,589,842 4,900,229

135

12.4 Deferred land leasehold right represents the fees of Baht 169 million of the Company, Glow SPP 2 Company Limited and Glow SPP 3 Company Limited which were paid in relation to the assignment of the leasehold right for 57 rais of land to them. Such deferred land leasehold occurred from Glow IPP 3 Company Limited (formerly Glow Hemaraj Energy Company Limited) entered into a Deposit and Lease Option Agreement with a local company as a leasehold right owner, to transfer the leasehold right for land of approximately 62 rais to the subsidiary at the price totaling Baht 181 million to be used for the development of a new IPP project. Deposit of Baht 18.1 million was paid by Glow IPP 3 Company Limited. On January 29, 2007 and March 19, 2007, the transferor issued two letters to reduce the area of the land and the leasehold transfer fee to be 57 rais and Baht 169 million, respectively. On August 9, 2007, the Company and Glow IPP 3 Company Limited entered into an Assignment Agreement to assign all rights and obligations under the Deposit and Lease Option Agreement to the Company. Under the assignment agreement, the Company is to pay the consideration, consisting of Assignment Fee of Baht 23.1 million and reimbursement of actual rental and utility fee already paid by Glow IPP 3 Company Limited to IEAT from August 2006 to August 2007. The Company paid the consideration totaling Baht 27.1 million to Glow IPP 3 Company Limited on August 30, 2007. On August 21, 2007, the Company sent a notice to exercise the lease option and paid the remaining assignment fee to the leasehold right owner of Baht 150.9 million on December 18, 2007. The Company, Glow SPP 2 Company Limited and Glow SPP 3 Company limited jointly entered into a land lease agreement for the above land with IEAT on December 19, 2007 (see Note 24.1.8 1)). 12.5 Project development costs represent costs incurred by Glow IPP 3 Company Limited (formerly Glow Hemaraj Energy Company Limited) that were transferred to GHECO-One Company Limited in December 2007 in accordance with the Joint Development and Venture Agreement dated March 18, 2005. 13. FINANCE LEASE PAYABLES The Company and its subsidiaries entered into finance lease agreements for vehicles and office equipment, under which the balance of minimum lease payments as at December 31, 2007 and 2006 are as follows:

Unit : Baht

Consolidated TheSeparatefinancialstatements

2007 2006 2007 2006

Less than 1 year 50,581,193 18,450,702 5,662,533 5,087,814

More than 1 year 132,624,013 24,026,064 7,049,709 9,852,406

Total minimum lease payment 183,205,206 42,476,766 12,712,242 14,940,220

Less: Interest expense (105,195,841) (4,030,987) (1,192,447) (1,557,295)

Total minimum lease payment, net 78,009,365 38,445,779 11,519,795 13,382,925

Less: Current portion of finance lease

payables (38,537,672) (16,376,197) (5,080,985) (4,379,565)

39,471,693 22,069,582 6,438,810 9,003,360

136

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The Company’s loan On February 16, 2005, the Company entered into a Facility Agreement for Yen 8,100 million loan, carrying interest at JPY LIBOR plus a certain percentage per annum. The loan was swapped into Baht loan in the amount of Baht 2,964.6 million under the Cross Currency Rate Swap Agreement made with the lender (see Notes 22.2 1) and 22.3 1)). The above Facility Agreement contains normal covenants related to various matters such as the maintenance of tangible net worth, a certain gearing ratio, a certain debt service coverage ratio, and keeping secured indebtedness within a specified amount, etc. In addition, on February 16, 2005, Glow SPP 2 Company Limited and Glow SPP 3 Company Limited have issued letters of guarantee in respect of a joint obligation to guarantee and undertake to pay to the lenders under such agreement. On September 17, 2007, the Company sent a Prepayment Notice to the lender to prepay the whole amount of the loan on October 22, 2007. On October 2, 2007, the Company entered into a new Facility Agreement with local branch of another foreign bank to obtain a Yen 8,100 million loan, carrying interest at JPY LIBOR plus a certain percentage per annum. The loan was drawn down on October 22, 2007 and used for prepayment of the above mentioned Yen loan. The loan is guaranteed by Glow SPP 1 Company Limited, Glow SPP 2 Company Limited and Glow SPP 3 Company Limited (see Note 4.3). The new Facility Agreement contains normal covenants related to various matters such as the maintenance of tangible net worth and a certain net debt to equity ratio. The Subsidiary’s loans The subsidiary’s loans in No. 3) and 4) represent loans of Glow IPP Company Limited. For the loan in No. 3), the subsidiary entered into the Loan Transfer Coordination Agreement dated December 12, 2005, Comprehensive Amendment Agreement, Amended and Restated Common Terms Agreement and Commercial Bank Loan Facility Agreement dated December 15, 2005 with the overseas commercial banks as the Replacement Finance Parties. In respect to the Commercial Bank Loan Facility Agreement under the Comprehensive Amendment Agreement, the previous ERG Facility Agreement and the OND Facility Agreement were consolidated and the outstanding principal amounts were fully prepaid. As a consequence, as of the Amendment Date, total loan under the Commercial Bank Loan Facility Agreement was USD 151.2 million, including new granted loan of USD 8 million, and a further loan commitment of USD 66.5 million was still available. The loan carries interest at LIBOR plus a certain percentage per annum and payable semi-annually. On March 6, 2006 and May 15, 2006, the subsidiary drew down an additional amount of loans of USD 21 million and USD 45.5 million, respectively. On March 1, 2006, the Company entered into a Dollar Debt Service Reserve Guarantee agreement with an Offshore Collateral Agent, as agent for the lenders, of Glow IPP Company Limited to guarantee and undertake to the agent for the payments of Accrual Scheduled Debt Service when due, of which the guarantee facility amount shall not exceed 50 percent of the amount required for the Relevant Debt Service Reserve Account on that Repayment Date.

138

For the loan in No. 4), on July 14, 2000, the subsidiary entered into loan agreements with a foreign financial institution, under the Common Term Agreement, Tranche EIB of USD 70.9 million which carries interest at cost of fund plus a fixed percentage per annum or fixed interest rate per annum depending on the type of interest rate chosen at the drawdown date. Such type of interest rate is fixed throughout the period of each drawdown, and payable semi-annually. The loan principal is repayable in 24 semi-annual installments in the amounts specified in the agreement from December 2002 to June 2014. On February 5, 2003, the subsidiary and the foreign financial institution agreed to reduce the loan facility from USD 70.9 million to USD 61.5 million and to change the repayment schedule to be 23 semi-annual installments from June 2003 to June 2014. On December 12, 2005, under the Loan Transfer Scheme, the Tranche EIB was amended only the EIB Guarantors. Glow IPP Company Limited entered into an EIB Guarantee Facility Agreement with various offshore banks to support its obligations under the EIB Finance Contract for an amount equal to 115 percent of the outstanding principal amount of the EIB Loans from time to time. All loans of Glow IPP Company Limited are secured by the mortgage of all of the land, construction, machinery and equipment (see Note 11), the pledge of deposits at financial institutions and current investments (see Notes 5 and 6), and the assignment of all rights and obligations under various agreements relating to the project. In addition, the loans are secured by the pledge of all shares of Glow IPP Company Limited, of which 95 percent are owned by Glow Company Limited and 5 percent by other shareholders. The loan agreements contain normal covenants related to various matters, such as the maintenance of certain debt to equity ratio, the maintenance of certain debt service coverage ratio, and the project completion period. The subsidiary entered into interest rate swap agreements for the USD loan in No. 3) (see Note 22.3 2)). 15. CONVERTIBLE DEBENTURES Convertible debentures as at December 31, 2006 consist of:

USD Baht Convertible debentures 30,000 1,086,924 Provision for repurchase of convertible debentures 9,485 410,750 1,497,674 Less Current portion of convertible debentures (1,497,674) -

139

On February 12, 1997, the Company issued 120,000 units of convertible debentures of USD 1,000 each to overseas investors totaling USD 120 million with interest at the coupon rate of 2.5 percent per annum. The debentures are due for redemption within 10 years and could be converted into ordinary shares from July 1, 1997 to January 31, 2007 at a current conversion price of Baht 48 per share. The exchange rate to be used for conversion is USD 1 for Baht 25.87. The debentures carry a call option allowing the Company the option to wholly or partially redeem them at anytime on or after February 12, 2000 at their principal plus accrued interest under certain conditions that the closing price of its shares on the Stock Exchange of Thailand has to be at least 140 percent of their conversion price in effect on each such trading day for 30 consecutive trading days. The debentures also carry a put option allowing the bondholders the option to have their debentures redeemed at 127.478 percent on their face value in USD on February 12, 2002. The USD 56.59 million and USD 63.38 million of the convertible debentures were repurchased by the Company in 2000 and early redeemed by the bondholders on February 12, 2002, respectively. The above convertible debentures were due and redeemed on February 12, 2007. 16. DEBENTURES Debentures as at December 31, 2007 and 2006 consist of: Debentures No. 1/2550 On May 21, 2007, the Company issued 2,000,000 units of unsubordinated and guaranteed debentures with a debentureholders’ representative in the named-registered certificate at the face value of Baht 1,000 each, totaling Baht 2,000 million. These were offered exclusively to institutional or large investors. The debentures have a 10-year term and will be due for redemption on May 21, 2017. The debentures have a coupon rate at a certain percentage per annum, payable semi-annually commencing November 21, 2007. The debentures are guaranteed by Glow SPP 1 Company Limited, Glow SPP 2 Company Limited and Glow SPP 3 Company Limited according to the letter of guarantee issued by them in respect of a joint obligation to guarantee and undertake to pay to the debentureholders’ representative in respect of the debentures. The above debentures stipulate certain covenants such as the maintenance of tangible net worth, the maintenance of a certain gearing ratio and the maintenance of a certain debt service coverage ratio.

Unit : Baht

ConsolidatedandTheSeparatefinancialstatements

2007 2006

Debentures No. 1/2550 2,000,000,000 -

Less Deferred debentures issue expenses (7,516,530) -

Debentures No. 1/2546 and No. 2/2546 8,400,000,000 11,000,000,000

Less Deferred debentures issue expenses (19,107,401) (31,672,904)

Current portion of debentures (2,600,000,000) (2,600,000,000)

7,773,376,069 8,368,327,096

140

Debentures No. 1/2546 and No. 2/2546 The Company entered into a Placement Agreement dated June 30, 2003 and amendments to the Placement Agreement dated September 19, 2003, September 26, 2003, and November 17, 2003, respectively, with two local financial institutions to offer guaranteed amortising debentures of Baht 12,300 million, at a price of Baht 1,000 each and to issue Bills of Exchange. On September 30, 2003, the Company issued 6,500,000 units of the debentures at a price of Baht 1,000 each, totaling Baht 6,500 million (Debentures No. 1/2546). These were offered by way of private placement to institutional or specific investors. The debentures have a maturity of 5 years and the principal is repayable in eight semi-annual instalments commencing April 1, 2005 and have a coupon rate at a certain percentage per annum, payable semi-annually commencing April 1, 2004. On December 11, 2003, the Company issued 5,800,000 units of the debentures at a price of Baht 1,000 each, totaling Baht 5,800 million (Debentures No. 2/2546). These were offered by way of public offering and private placement to institutional investors. The debentures consist of: - 2,310,000 units of Tranche 1 at a price of Baht 1,000 each, totaling Baht 2,310 million, with a term of 5 years 9 months and 20 days. The Debentures are repayable on April 1 and October 1, 2009, and have coupon rate at a certain percentage per annum, payable semi-annually commencing April 1, 2004. - 3,490,000 units of Tranche 2 at a price of Baht 1,000 each, totaling Baht 3,490 million, with a term of 7 years. The Debentures are repayable on December 11, 2010 and have coupon rate at a certain percentage per annum, payable semi-annually commencing June 11, 2004. The debentures No. 1/2546 and No. 2/2546 were issued for financial support to Glow SPP 2 Company Limited and Glow SPP 3 Company Limited. On September 29, 2003, both subsidiaries issued a letter of guarantee in respect of a joint obligation to guarantee and undertake to pay to the debentureholders representative in respect of the debentures. The above debentures stipulate certain covenants such as the maintenance of tangible net worth, the maintenance of a certain gearing ratio, the maintenance of a certain debt service coverage ratio and keeping of trade-related secured indebtedness within a specified amount. Under the above Placement Agreement and Amendment Agreements, an amount of Baht 369 million was received by the Company from both financial institutions for the difference between pricing of debentures and bills of exchange, and Benchmark Pricing. The amount was included in other non-current liabilities in the balance sheets and is being accreted against interest expense over the term of debentures.

141

17. RECONCILIATION OF DILUTED EARNINGS PER SHARE The calculation of diluted earnings per share for the year ended December 31, 2006 is as follows: The diluted earnings per share for the year ended December 31, 2007 has not been calculated as the convertible debentures were due and redeemed on February 12, 2007. 18. LEGAL RESERVE 18.1 Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Company is required to set aside a legal reserve of at least 5 percent of net earnings after deducting accumulated deficit brought forward (if any) until the reserve reaches 10 percent of the registered share capital and the reserve is not available for distribution as dividends. 18.2 According to the Civil and Commercial Code, subsidiary companies are required to set aside a legal reserve of at least 5 percent of net earnings at each dividend payment until the reserve reaches 10 percent of the registered share capital. Such reserve is not available for distribution as dividends. 19. DIVIDEND PAYMENT On August 9, 2007, the Board of Directors’ meeting of the Company passed a resolution to distribute an interim dividend from profit for the six-month period ended June 30, 2007 at Baht 0.60 per share, totaling Baht 877.7 million. The dividend was paid on September 7, 2007.

Consolidated TheSeparatefinancialstatements

“Restated” “Restated” “Restated”

Weightedaverage Weightedaverage

numberof Earnings numberof Earnings

Netprofit ordinaryshares pershare Netprofit ordinaryshares pershare

Baht Shares Baht Baht Shares Baht

Basicearningspershare

Net profit 5,596,385,201 1,462,865,035 3.83 3,591,052,752 1,462,865,035 2.45

Effect of dilutive potential

ordinary shares

Convertible debentures (122,253) 16,169 (122,253) 16,169

Diluted earnings per share

Net profit of ordinary

shareholders assuming

the conversion of

dilutive potential

ordinary shares 5,596,262,948 1,462,881,204 3.83 3,590,930,499 1,462,881,204 2.45

142

The annual general shareholders’ meeting of the Company passed a resolution to distribute dividends as follows: Shareholders’ Baht Amount Dividend Meeting Date per share (Million Baht) payment date April 25, 2007 1.575 2,304.0 May 25, 2007 for Baht 0.975 per share and

September 8, 2006 for Baht 0.60 per share *

April 28, 2006 2.250 3,291.4 May 26, 2006

* The interim dividend of Baht 0.60 per share totaling Baht 877.7 million was paid following the resolution of the Board of Directors’

meeting of the Company on August 9, 2006.

20. PROVIDENT FUND EXPENSE Provident fund contributions made by the Company and its subsidiaries for their employees and recorded as expense in the income statements for the years ended December 31, 2007 and 2006 are as follows:

Unit : Million Baht

Company’sname Consolidated TheSeparatefinancialstatements

2007 2006 2007 2006

Glow Energy Public Company Limited 1.7 1.4 1.7 1.4

Glow SPP 1 Company Limited 0.9 0.8 - -

Glow SPP 2 Company Limited 1.2 1.2 - -

Glow SPP 3 Company Limited 0.5 0.6 - -

Glow IPP Company Limited 0.7 0.9 - -

Glow Company Limited 7.7 6.7 - -

143

21. PROMOTIONAL PRIVILEGES The Company and all of subsidiaries have been granted various promotional privileges under the Investment Promotional Act, B.E. 2520 by the Board of Investment under the promotion certificates as follows:

Company’s name Certificates 1st Income Privileges

No. Dated Date

Glow Energy Public Company Limited 1413/2537 July 11, 1994 May 1995 a) to g)

1392/2538 June 23, 1995 January 1996 a) to g)

1206(2)/2547 March 9, 2004 July 2004 a) to g)

1635(2)/2547 August 9, 2004 December 2005 a) to g)

1609(2)/2550 June 18, 2007 - a) to g)

2155/อ./2550 November 16, 2007 - a) to b)

Glow Company Limited 1479/2546 September 4, 2003 - a)

Glow SPP 1 Company Limited 1032/2539 January 22, 1996 September 1997 a) to g)

1532/2539 July 24, 1996 July 1998 a) to g)

Glow SPP 2 Company Limited 1744/2539 November 6, 1996 August 1997 a) to g)

Glow SPP 3 Company Limited 1222/2536 November 5, 1993 July 1994 a) to g)

1552/2540 August 22, 1997 August 1999 a) to g)

Glow IPP Company Limited 1526/2542 November 30, 1999 January 2003 a) to d)

Glow Demin Water Company Limited 1213/2542 May 21, 1999 May 1999 a) to g)

1235(2)/2549 March 2, 2006 July 2006 a) to g)

Subject to certain imposed conditions, the privileges include the following: a) Permission to own land in order to carry on the promoted activities as the Board may deem appropriate. b) Exemption of import duty on machinery, materials and supplies imported for production for domestic sales as approved by the Board. c) Exemption of corporate income tax on net profit for a period of eight years commencing from the date of earning operating income. In cases where the business incurs a loss during that period of exemption, the loss incurred in such period can be taken as a deduction from net profit of the years after the period of exemption, not exceeding 5 years. d) Exemption of income tax on dividends paid from the profit of the promoted operation for a period of eight years. e) An allowance of fifty percent of the normal rate of corporate income tax on net profit for a period of five years after the expiry date of the corporate income tax exemption period as described in c) above. f) Permission to deduct double the cost of transportation, electricity and water supply for corporate income tax purpose for a period of ten years commencing from the date of earning operating income. g) Permission to deduct the cost of installation or construction of public utilities at the rate of twenty-five percent in addition to normal depreciation charges.

144

As Glow SPP 3 Company Limited sold its Phase 1 water plant to the Company in June 2007, therefore, on November 16, 2550, Glow SPP 3 Company Limited transferred the remaining privileges under the promotion certificate No. 1222/2536 dated November 5, 1993 to the Company. All the Company’s sales are domestic sales, which are allocated to promoted and non-promoted activities as follows: 22. DISCLOSURE OF FINANCIAL INSTRUMENTS 22.1 Credit risk Credit risk is the risk arising from the inability of a counterparty of the Company and its subsidiaries to meet the terms of a financial instrument, causing the Company and subsidiaries to incur a financial loss. It is the policy of the Company and its subsidiaries to enter into financial instrument contracts only with creditworthy counterparties. Although the Company and its subsidiaries are subject to significant concentrations of credit risk, as almost all sales are made to Electricity Generating Authority of Thailand (EGAT) and companies in the petrochemical industry, the Company and its subsidiaries do not expect to incur material credit losses on their risk management or other financial instruments. As at December 31, 2007 and 2006, the maximum exposure to credit risk in the event the counterparties fail to perform their obligations is the carrying amount of the financial assets as stated in the balance sheets. 22.2 Foreign currency risk The exposure to foreign currency risk relates primarily to purchases of equipment, repairs and maintenance of power plants and loans denominated in foreign currencies. In order to hedge the foreign currency risk, the Company and its subsidiaries entered into currency swap agreements and forward foreign exchange contracts, of which the details are as follows: 1) On February 16, 2005, the Company entered into a cross currency interest rate swap agreement with a financial institution to swap the Company’s long-term loan of Yen 8,100 million for a Baht 2,964.6 million loan. The term of the agreement is from February 18, 2005 to December 30, 2011. On September 4, 2007, the Company and the financial institution agreed to restructure the swap agreement (see Note 22.3 1)). 2) On January 23, 2007, the Company entered into forward foreign exchange contracts with three financial institutions for the USD amount of the Offshore Supply Contract for construction of new Power Plant. The outstanding balances of the forward contracts as at December 31, 2007 are as follows:

Unit : Baht

TheSeparatefinancialstatements 2007 2006

Promoted Non-promoted Promoted Non-promoted

activities Activities Total activities activities Total

Revenues from

the sales of goods 9,287,273,470 1,310,632,458 10,597,905,928 8,791,683,027 1,286,677,432 10,078,360,459

145

Unit : Million

Valuedate Contractamount

USD Baht

February 1, 2008 11.0 396.9

April 1, 2008 - August 1, 2008 41.7 1,491.6

November 1, 2008 - March 1, 2010 41.0 1,462.8

As the payment term of the construction will be extended, therefore on September 20, 2007, the Company entered into a forward foreign exchange contract with one of the above financial institutions for the extended payment term as follow:

Unit : Million

Valuedate Contractamount

USD Baht

February 1, 2008 1.2 41.9

3) Glow IPP Company Limited has forecasted the payments of the spare parts for scheduled major maintenance in Swiss Franc currency (CHF) while its revenues are mainly indexed to the USD currency. To manage the risk incurring from exchange rate fluctuations between both currencies, the subsidiary entered into forward foreign exchange contracts with a financial institution, of which the outstanding balances as at December 31, 2007 are as follows:

Unit : Million

Contractperiod Contractamount

CHF USD

May 8, 2006 – April 1, 2008 17.6 15.3

May 8, 2006 – June 2, 2008 20.1 17.6 Furthermore, Glow IPP Company Limited gradually entered into forward foreign exchange contracts with the above financial institution to exchange the above USD amounts for Baht amounts. The outstanding balances of the forward contracts as at December 31, 2007 are as follows:

Unit : Million

Valuedate Contractamount

USD Baht

April 1, 2008 14.0 503.2

June 2, 2008 13.5 478.7

As at December 31, 2007 and 2006, the Company and its subsidiaries have net current liabilities in foreign currencies which are not hedged against foreign exchange rate risk as follows:

Unit : Million

ForeignCurrencies 2007 2006

USD 3.1 5.0

EUR 0.4 0.4

CHF 0.5 2.4

SEK - 0.2

146

22.3 Interest rate risk Interest rate risk is the risk whereby future movements in market interest rates will have an effect on the operating results and cash flows of the Company and its subsidiaries. Financial instruments of the Company and its subsidiaries with floating interest rates comprise deposits at financial institutions, and long-term loans. In order to hedge interest rate risks of long-term loans, the Company and its subsidiaries entered into interest rate swap agreements, of which the details are as follows: 1) On February 16, 2005, the Company entered into a cross currency interest rate swap agreement with a financial institution (same agreement in Note 22.2 1)) to swap interest at JPY LIBOR plus a certain percentage per annum for THB-THBFIX plus a certain percentage per annum. The term of the agreement is from February 18, 2005 to December 30, 2011. On September 4, 2007, the Company and the financial institution agreed to restructure the swap agreement by swapping interest at JPY LIBOR plus a certain percentage per annum for a certain percentage per annum. The amended swap agreement shall be effective on February 18, 2008 until December 30, 2011. 2) On December 9, 2005, Glow IPP Company Limited entered into three interest rate swap agreements with three foreign banks for the USD loan under the Commercial Bank Loan Facility Agreement dated December 15, 2005 at the notional amount totaling USD 64.27 million, swapping interest at LIBOR for a certain percentage per annum. The interest rate swap agreements will be effective on December 15, 2008 and mature on June 15, 2018. In addition, other financial instruments of the Company and its subsidiaries, which have fixed interest rates, are deposits at financial institutions and current investments, which will be due within three months from the balance sheet date, and debentures. 22.4 Fair value of financial instruments Thai Accounting Standard No. 48, “Financial Instruments Disclosure and Presentation”, requires certain fair value disclosures. Considerable judgement is necessarily required in estimation of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amount that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value. The following methods and assumptions were used by the Company and its subsidiaries in estimating fair value of financial instruments. Cash and cash equivalents, current investments, trade accounts receivable, other current assets, trade accounts payable, other current liabilities and long-term loans; the carrying values approximate their fair values. As at December 31, 2007 and 2006, the carrying values of currency swap agreements, interest rate swap agreements, forward foreign exchange contracts and debentures compared to their fair values, are as follows:

147

Unit : Million

December31,2007 Consolidated TheSeparatefinancialstatements Contractamount Fairvalue Contractamount Fairvalue Asset Asset (Liability) (Liability) Yen CHF USD Baht USD Baht Yen USD Baht USD Baht

Unit : Million

Cross currency interest

rate swap agreement 8,100.0 - - 2,964.6 - (624.8) 8,100.0 - 2,964.6 - (624.8)

Forward foreign exchange

contracts

- CHF / USD - 37.7 32.9 - 0.4 - - - - - -

- USD / Baht - - 122.4 4,375.0 (7.2) - - 94.9 3,393.2 (5.5) -

Interest rate swap agreements

- Note 22.3 2) - - 64.2 - (10.4) - - - - - -

Cross currency interest

rate wap agreement 8,100.0 - - 2,964.6 - (625.5) 8,100.0 2,964.6 (625.5)

Forward foreign exchange

contracts

- CHF / USD - 58.6 50.6 - (1.2) - - - -

- USD / Baht - - 19.9 742.3 (0.7) - - - -

Interest rate swap agreements

- Note 22.3 2) - - 64.2 - (7.5) - - - -

Unit : Million

December31,2007 December31,2006

ConsolidatedandtheSeparate ConsolidatedandtheSeparate

financialstatements financialstatements

Carryingvalue Fairvalue Carryingvalue Fairvalue

Baht Baht Baht Baht

Debentures 1/2550 2,000.0 1,813.4 - -

Debentures 1/2546 2,600.0 2,585.1 5,200.0 5,025.7

Debentures 2/2546 Tranche 1 2,310.0 2,322.2 2,310.0 2,202.2

Debentures 2/2546 Tranche 2 3,490.0 3,510.6 3,490.0 3,347.0

The fair value of debentures is determined by the last bid price on the Thai Bond Dealing Center on the last business day of the year.

December31,2006 Consolidated TheSeparatefinancialstatements Contractamount Fairvalue Contractamount Fairvalue Asset Asset (Liability) (Liability) Yen CHF USD Baht USD Baht Yen Baht Baht

148

23. TRANSACTIONS WITH RELATED PARTIES A portion of the company’s business is represented by transactions with its related parties which have the same group of shareholders and directors. The financial statements reflect the effects of those transactions occur in the normal course of business based on the basis determined by the Company and its related parties. Significant balances and transactions between the Company and its related parties are as follows:

Unit : Baht

AsatDecember31, Accountname/Company’sname Relationship Consolidated TheSeparatefinancial statements 2007 2006 2007 2006 Trade accounts receivable from related parties

Glow SPP 2 Company Limited Subsidiary - - 21,858,255 2,900,682

Glow SPP 3 Company Limited Subsidiary - - 11,569,119 30,528,515

Suez Energy Asia Company Limited Related company 1,222,490 1,138,725 - -

1,222,490 1,138,725 33,427,374 33,429,197

Advances to related parties

Glow Company Limited Subsidiary - - - 968,350

Glow SPP 2 Company Limited Subsidiary - - 951,712 -

Glow SPP 3 Company Limited Subsidiary - - 168,812,262 18,351,963

GHECO-One Company Limited Subsidiary - - 66 -

Suez-Tractebel S.A. Major shareholder 2,767,890 - 2,767,890 -

2,767,890 - 172,531,930 19,320,313

Interest receivable from related parties

Glow SPP 1 Company Limited Subsidiary - - 1,844,384 586,849

Glow SPP 2 Company Limited Subsidiary - - 7,099,657 7,099,657

Glow SPP 3 Company Limited Subsidiary - - 21,789,603 23,047,138

- - 30,733,644 30,733,644

Long-term loans to related parties

Glow SPP 1 Company Limited Subsidiary - - 850,000,000 850,000,000

Glow SPP 2 Company Limited Subsidiary - - 1,499,951,198 1,499,951,198

Glow SPP 3 Company Limited Subsidiary - - 3,665,048,802 3,665,048,802

- - 6,015,000,000 6,015,000,000

Trade accounts payable to related parties

Glow SPP 2 Company Limited Subsidiary - - 30,747,578 62,376,497

Glow SPP 3 Company Limited Subsidiary - - 58,810,723 105,447,018

- - 89,558,301 167,823,515

Advances from related parties

Glow SPP 1 Company Limited Subsidiary - - 1,178,177 -

Glow SPP 2 Company Limited Subsidiary - - 50,104 574,843

Glow SPP 3 Company Limited Subsidiary - - - 2,550

Glow Company Limited Subsidiary - - 33,709,280 317,229

Glow IPP 2 Holding Company Limited Subsidiary - - 1,000,000 -

Suez-Tractebel S.A. Major shareholder 12,773,152 15,599,792 5,057,744 2,809,815

Suez Energy Asia Company Limited Related company 7,277,233 3,136,425 4,117,478 3,136,425

Suez University Related company 347,642 - - -

South Sathorn Company Limited Related company - 350,000 - -

20,398,027 19,086,217 45,112,783 6,840,862

149

Unit : Baht

Sales

Glow SPP 2 Company Limited Subsidiary - - 65,726,165 26,347,327

Glow SPP 3 Company Limited Subsidiary - - 99,644,013 39,682,679

Interestincome

Glow SPP 1 Company Limited Subsidiary - - 30,600,000 586,849

Glow SPP 2 Company Limited Subsidiary - - 53,998,243 64,576,494

Glow SPP 3 Company Limited Subsidiary - - 131,941,757 190,913,040

Serviceincome

Suez Energy Asia Company Limited Related company 5,730,842 2,608,928 - -

Saleofspareparts

Glow SPP 1 Company Limited Subsidiary - - 123,387 579,175

Glow SPP 2 Company Limited Subsidiary - - 1,794,028 351,218

Glow SPP 3 Company Limited Subsidiary - - 2,323,509 377,141

Glow IPP Company Limited Subsidiary - - 17,646 -

Glow Demin Water Company Limited Subsidiary - - 8,370 -

Purchases

Glow SPP 2 Company Limited Subsidiary - - 182,336,920 303,357,504

Glow SPP 3 Company Limited Subsidiary - - 391,889,994 459,761,958

Serviceexpense

Suez-Tractebel S.A. Major shareholder 8,463,567 8,043,725 4,308,107 2,809,815

Suez Energy Asia Company Limited Related company 4,168,640 5,810,142 4,117,478 5,810,142

Suez University Related company 347,642 - - -

South Sathorn Company Limited Related company 9,179,545 4,550,000 - -

Managementfees

Glow Company Limited Subsidiary - - 113,206,229 112,727,000

Suez-Tractebel S.A. Major shareholder (444,056) (9,053,553) - -

Purchaseofspareparts

Glow SPP 1 Company Limited Subsidiary - - 156,979 22,603

Glow SPP 2 Company Limited Subsidiary - - 1,274,940 588,838

Glow SPP 3 Company Limited Subsidiary - - 9,400,095 550,840

Glow IPP Company Limited Subsidiary - - 288,568 -

Purchaseofwaterplantandrelatedassets

Glow SPP 3 Company Limited Subsidiary - - 505,920,153 -

Dividendincome

Glow Company Limited Subsidiary - - 497,388,490 2,271,260,714

Glow SPP 2 Company Limited Subsidiary - - 222,369,064 -

Glow SPP 3 Company Limited Subsidiary - - 2,934,609,017 -

AsatDecember31, Accountname/Company’sname Relationship Consolidated TheSeparatefinancial statements 2007 2006 2007 2006

150

No interest is charged on advances with related parties. The Company and the related companies have determined prices of sales and purchases of electricity, steam and water to and from related companies based on average selling price charged to industrial customers of the Company and related companies. Management fees are determined based on the cost related to rendering services to the Company and its subsidiaries plus a certain margin. Sale of spare parts is determined based on cost plus a certain margin. On June 25, 2007, the Company purchased phase 1 water plant together with assets used for its operations, i.e. furniture, office equipments, tools and equipment, and spare parts, from Glow SPP 3 Company Limited. The assets were priced at Baht 513 million, determined based on an agreed price for water plant, net book value for furniture, office equipments, and tools and equipment, and cost for spare parts. In December 2007, a reduction of Baht 7.1 million was adjusted to the price as a result of actual cost subsequently incurred. 24. COMMITMENTS AND CONTINGENT LIABILITIES The Company and its subsidiaries have commitments and contingent liabilities as follows: 24.1 Commitments 24.1.1 Significant power purchase agreements The Company and its subsidiaries entered into Power Purchase Agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT). Each of the agreements is effective commencing from the month in which electricity was sold to EGAT. The Company and its subsidiaries have provided letters of guarantee issued by banks to guarantee their performance as specified in the PPAs as below:

Company’s name Date of Number of Agreement Bank

Agreement Agreements Term guarantee

(Years) Million Baht Glow Energy Public Company January 7, 1998 2 21 326.2

Limited

Glow SPP 1 Company Limited February 1, 1996 2 23 199.3

Glow SPP 2 Company Limited December 23, 1997 2 25 217.4

Glow SPP 3 Company Limited December 23, 1997 2 25 455.8

Glow IPP Company Limited November 19, 1997 1 25 Not required

151

24.1.2 Power, steam and water supply agreements among the group of companies On December 25, 2006, Glow SPP 1 Company Limited, Glow SPP 2 Company Limited, Glow SPP 3 Company Limited and the Company jointly entered into Back-up Agreements for supply of electricity, steam, clarified water and demineralized water among them. Such agreements shall be effective for the period of 25 years starting from January 1, 2004. 24.1.3 Gas purchase agreements 1) The Company and its subsidiaries entered into Gas Purchase Agreements with PTT Public Company Limited (PTT) detailed as follows:

Company’s name Date of Number of Term/ Agreement Agreements Renew Years Glow Energy Public Company Limited November 22, 1999 1 21/ 4

Glow SPP 1 Company Limited October 1, 1998 1 21/ 4

Glow SPP 2 Company Limited September 28, 1999 1 21/ 4

Glow IPP Company Limited December 12, 1997 1 25

Under the agreements, the Company and its subsidiaries are committed to purchase gas at a specified quantity and price starting from the Gas Commercial Utilization Date. 2) On September 7, 2005, the Company entered into a Memorandum of Purchase of Natural Gas with PTT to purchase gas for power plant expansion project 1 and 2 of the Company at a quantity and price as stipulated in the Memorandum for a period of not less than 15 years starting from December 1, 2004 (Gas Commercial Utilization Date of Expansion Project 1). 3) On January 15, 2004, Glow SPP 3 Company Limited entered into a Gas Purchase Agreement with PTT to purchase gas at the quantity and price as stipulated in the Agreement for a period of 5 years starting from January 1, 2004. On January 15, 2007, Glow SPP 3 Company Limited and PTT agreed to terminate the above Gas Purchase Agreement and entered into a new Gas Purchase Agreement to purchase gas at the quantity and price as stipulated in the Agreement for a period of 5 years starting from November 1, 2006. On July 27, 2007, Glow SPP 3 Company Limited, PTT and the Company entered into an assignment agreement to assign all rights and obligations under the Gas Purchase Agreement to the Company, whereby the assignment shall be effective starting from June 25, 2007.

152

24.1.4 Coal purchase agreements 1) Glow SPP 3 Company Limited is committed under Coal Supply Agreement dated December 17, 1997, Amendment No.1 dated April 8, 1999, Amendment No.2 dated September 6, 2002 and Amendment No. 3 dated December 15, 2006 to purchase coal from a local company at a specified quantity and price until December 31, 2014, renewable for another 10 years. 2) Glow SPP 3 Company Limited entered into three coal supply agreements dated February 1, 2005, November 10, 2005 and November 22, 2007 with an overseas company to purchase coal at the quantity and price as stipulated in the agreements for the period of 3 years each commencing from January 1, 2005 to December 31, 2007, January 1, 2006 to December 31, 2008, and January 1, 2008 to December 31, 2010, respectively. 24.1.5 Back-up power purchase agreements Glow SPP 2 Company Limited, Glow SPP 3 Company Limited and the Company entered into Back-up Power Purchase Agreements with EGAT to purchase back-up power at the quantity and price as stipulated in the agreements. The agreements are for a period of 1 year, renewable every year and are detailed as follows:

Company’s Name Agreement Date Effective Date Number of

Agreement

Glow Energy Public Company Limited February 2, 2004 October 1, 2003 2

Glow SPP 2 Company Limited March 22, 2002 January 1, 2001 2

Glow SPP 3 Company Limited February 2, 2004 October 1, 2003 2

On September 30, 2004, the Company and three subsidiaries jointly entered into an agreement with EGAT to settle the dispute regarding the interconnection of the power and steam systems of the Group. Under the agreement, Glow SPP 2 Company Limited, Glow SPP 3 Company Limited and the Company agreed to purchase additional back-up power from EGAT at a quantity specified in the agreement. Subsequently, on February 2, 2005, the Company and both subsidiaries made amendments to the Back-up Power Purchase Agreements with EGAT to revise the quantity of back-up power and to purchase the back-up power over the periods as follows:

Company’s name Project Period up to Glow Energy Public Company Limited 1 March 31, 2017

2 September 30, 2017

Glow SPP 2 Company Limited 1 March 28, 2024

2 April 25, 2024

Glow SPP 3 Company Limited 1 August 31, 2024

2 March 19, 2025

In the event the PPAs are terminated before the above date, the back-up power purchase agreements will be consequently terminated.

153

24.1.6 Pipe rack agreements 1) On August 30, 2007, the Company entered into an agreement with PTT Public Company Limited for right of use of structure for piping of PTT for its pipeline system for a period of 15 years commencing January 1, 2007 to December 31, 2021. The right of use fee, which is calculated following the calculation formula stipulated in the agreement, is to be paid semi-annually, of which the amount is approximately Baht 0.2 million, increase by 3 percent every year. 2) On September 1, 2004, the Company entered into a pipe rack agreement to lease the space in the piping support system from a local company for a period from June 1, 2005 to December 31, 2020, with an annual rental of Baht 4.5 million adjusted every year by 5 percent. 3) On September 29, 2005, Glow SPP 3 Company Limited entered into an agreement with PTT Public Company Limited for right of use of structure for piping of PTT for its pipeline system for a period of 15 years commencing September 1, 2005 to August 31, 2020. The right of use fee, which is calculated following the calculation formula stipulated in the agreement, is to be paid semi-annually, of which the amount is approximately Baht 0.3 million, increase by 3 percent every year. 4) Glow SPP 1 Company Limited entered into a pipe rack agreement dated May 28, 1999, superseded the pipe rack usage agreement dated September 25, 1998, to lease the space in the piping support system from a local company for a period of 15 years from October 1, 1998 to September 30, 2013. The right of use fee of Baht 8.6 million was paid by the subsidiary and recorded as deferred right of pipe rack usage. In addition, the subsidiary is liable to pay a semi-annual rental fee of approximately Baht 3 million, increase by 5 percent every year. On September 1, 2002 and September 28, 2006, the subsidiary entered into amendments No.1 and No.2, respectively, to the pipe rack agreement to lease more space and extend the period for another 8 years.

154

24.1.7 Construction and development 1) As at December 31, 2007 and 2006, the Company and its subsidiaries have outstanding commitments in respect of construction and improvement as follows: Unit : Million Baht

Company’s name Commitments Amount

2007 2006 Glow Energy Public Company Construction and improvement 520.2 102.7

Limited of power plant and transmission

line

Glow SPP 3 Company Limited Improvement of power plant 5.5 47.7

system

Glow IPP Company Limited Improvement of power plant 19.0 1.4

system

Glow Demin Water Company Construction of demineralised - 2.5

Limited water system

Glow SPP1 Company Limited Construction of steam piping - 14.7

and metering station

2) On August 7, 2000, Glow SPP 3 Company Limited entered into a joint agreement with the Industrial Estate Authority of Thailand (IEAT) to develop an area to construct a shipping berth at Map Ta Phut Industrial Estate. The construction of the dedicated berth for use in handling of coal, other raw materials and necessary goods has been completed and it commenced the operation on December 7, 2001. Glow SPP 3 Company Limited has the right to utilize this area for a period of 30 years, with the following benefits paid to IEAT: - Right of way fee for coal conveyor construction at Baht 1.3 million per annum, adjusted every 10 years by 10 percent. - Water front fees of Baht 23.6 million payable within 1 year, and fees of Baht 9.9 million per annum payable from 2001 to 2030. - Fee payable at a rate stipulated in the agreement for actual shipments made through the berth, and, from 2002, a minimum of at least an amount equivalent to 500,000 tons per year being shipped through the berth is to be paid. In addition, the ownership of the dedicated berth will be transferred to IEAT in the fifteenth year from the date of commencing the operations, without any compensation.

155

3) On January 22, 2007, the Company entered into Offshore Supply Contract and Onshore Construction Contract with an overseas company for construction of a new 115 MW CFB Power Plant, of which the contract prices are USD 122.5 million and Baht 1,575.6 million, respectively. As at December 31, 2007, the Company had outstanding commitments of USD 94.9 million and Baht 1,205.4 million. 24.1.8 Lease agreements 1) The Company and its subsidiaries entered into land lease agreements with the Industrial Estate Authority of Thailand (IEAT) for the construction of power plants and power substation and to operate an electricity and steam generation business as follows: Company’s name Date of Agreement Term/ Lease/ Guarantee

Renew Year Cash Bank

Years Million Million Million

Baht Baht Baht

Glow Energy Public Company Limited, December 19, 2007 30 7.6 7.6 7.6

Glow SPP 2 Company Limited

and Glow SPP 3 Company Limited

Glow Energy Public Company Limited June 5, 2007 13 1.0 1.0 1.0

Glow Energy Public Company Limited April 4, 1994 26/ 20 0.5 0.5 0.5

Glow SPP 2 Company Limited August 13, 1998 28 0.5 0.5 0.5

(started September

30, 1996)

Glow SPP 3 Company Limited June 1, 1993 27/ 20 0.7 - 1.3

Glow SPP 2 Company Limited December 6, 1996 28 30.9 - 46.4

and Glow SPP 3 Company Limited

On June 5, 2007, the lease agreement of Glow SPP 3 Company Limited dated June 1, 1993 was terminated. On July 11, 2003, the Company and both subsidiaries entered into an addendum attached to the above Lease Agreement dated December 6, 1996, whereby both subsidiaries allowed the Company to join as a counterparty of the lease agreement.

Guarantee

156

2) On January 23, 2007, the Company and Glow SPP 3 Company Limited jointly entered into an agreement with IEAT for right of use of the land for laying their power transmission line for a period of 30 years commencing January 15, 1996 to November 30, 2024, renewable for another 20 years, with an annual fee of approximately Baht 2.2 million, adjusted by 10 percent every 10 years. The fee for the period from January 15, 1996 to January 14, 2008 of Baht 27.2 million was paid in January 2007. 3) On February 15, 2005, Glow SPP 3 Company Limited entered into a land lease agreement with PTT Public Company Limited to lease the land where its network of power transmission line systems are erected for a period of 20 years starting from January 1, 2005 to December 31, 2024. The subsidiary has to pay an annual rental fee of Baht 5.4 million, adjusted every year by 2 percent after the tenth year of the lease agreement. 4) On June 1, 2007, Glow Company Limited entered into two agreements with a company for lease and service of building space for a period of 2 years commencing June 1, 2007 to May 31, 2009 with a monthly fee of Baht 1.5 million. 5) As at December 31, 2007 and 2006, the Company and its subsidiaries had outstanding commitments in respect of software licenses, lease of vehicles, and other services agreements totaling approximately Baht 146.5 million and Baht 151.9 million, respectively. 24.1.9 Maintenance service agreements 1) On April 20, 2004, the Company and Glow SPP 2 Company Limited entered into the Long Term Parts and Long Term Service Agreements (LTSAs) with a local company in order for provision of parts and maintenance services of Gas Turbine Units and their associated equipments. The term of the LTSAs is determined by the number of hours that such Cover Unit is operated (Factored-Fired Hour) and number of Major Inspection as specified in the agreements. The provision of services commenced in January 2005. The contract price consist of a fixed Thai Baht monthly fee and variable monthly fee in both USD and Baht currency as specified in the agreements. These prices are subject to escalation in accordance with the terms of the LTSAs. 2) On December 27, 2002, Glow SPP 3 Company Limited entered into the Hot Loop Refractory Maintenance Service Contract with Foster Wheeler International Corporation (FW). FW will provide maintenance services of two CFB Boilers and other related services required. The term of such contract is 72 months commencing from January 2003. The total contract prices are USD 0.9 million and Baht 21.2 million.

157

24.1.10 Support service agreements 1) The Company and six subsidiaries (“Glow Group”) jointly entered into Support Services Agreement and Engineering Services Agreement on May 3, 2005 with Suez-Tractebel S.A. (“Suez”), whereby Suez shall provide consulting services in respect of engineering, operational, financial and auditing system, investment, project finance, insurance, etc. The service fee shall be in Euro currency. The service agreements will be determined in the hourly rate depend on the type of services. The term of the agreements is 5 years from the execution date, automatically renewed for successive one - year term unless termination is notified by either party. Nevertheless, the agreements shall be terminated on the date that Suez holds directly or indirectly less than 25 percent of the shares of Glow Group. 2) Glow IPP Company Limited entered into a technical support agreement with Suez-Tractebel S.A. for the operation and maintenance of its facility. The subsidiary has to pay an annual fixed service fee and monthly variable service fees based on actual costs incurred. The agreement will be terminated when each party has notified of the termination in written form. 24.1.11 Utilities Agreement Glow IPP Company Limited entered into a utility agreement with a local company for the service on basic infrastructure, purchase of raw water, potable water, process wastewater and other services for the period of 25 years commencing from the commercial operation date, which was January 31, 2003. The subsidiary has to pay service fees as specified in the agreement. 24.1.12 Purchase of spare parts In February 2007, Glow IPP Company Limited issued 4 purchase orders to an overseas supplier to purchase spare parts to be used for major maintenance in February 2008 in the amount totaling CHF 49 million. An advance payment of 25 percent of CHF 12.3 million was paid in April 2007. The remaining amount of CHF 19.6 million and CHF 17.1 million will be paid when the parts are ready for delivery and after receipt of the parts, respectively. In April 2007, Glow IPP Company Limited issued another 2 purchase orders to the above overseas supplier to purchase spare parts to be used for major maintenance in June and August 2008 in the amount totaling CHF 2.8 million. An advance payment of 25 percent of CHF 0.7 million was paid in November 2007. The remaining amount of CHF 1.1 million and CHF 1.0 million will be paid when spare parts are ready for delivery and after receiving of the parts, respectively.

158

24.2 Contingent liabilities 24.2.1 Letters of guarantee As at December 31, 2007 and 2006, there were outstanding letters of guarantee issued by banks on behalf of the Company and its subsidiaries in respect of certain performance bonds as required in the normal course of business of the Company and its subsidiaries as follows: Unit : Million Baht

Company’s name Amount

2007 2006

Glow Energy Public Company Limited 812.2 345.5

Glow SPP 1 Company Limited 203.3 203.3

Glow SPP 2 Company Limited 240.6 240.6

Glow SPP 3 Company Limited 489.0 488.8

Glow IPP Company Limited 6.8 6.8

Glow IPP 2 Holding Company Limited and another shareholder 330.0 -

Glow Energy Public Company Limited and six subsidiaries 2.0 2.0

The above bank guarantee of Glow IPP 2 Holding Company Limited of Baht 330 million is guaranteed by the Company in the amount not exceeding Baht 214.5 million. 24.2.2 Others 1) On October 17, 2007, the Company, Glow SPP 2 Company Limited, Glow SPP 3 Company Limited and GHECO-One Company Limited entered into a land option agreement to grant an option to GHECO-One Company Limited to acquire the leasehold right of approximately 32 rais of land at the price of Baht 96 million for construction and operation of 700 MW coal fired power plant under the Thai Independent Power Producer Program. The exercise of the option shall be within December 31, 2008. 2) On October 17, 2007, the Company and GHECO-One Company Limited entered into a coal storage land lease option agreement to grant an option to GHECO-One Company Limited to acquire the leasehold right of 44.7 rais of land at the price totaling approximately Baht 136.9 million. The exercise of the option shall be within March 31, 2009. 3) On June 6, 2006, the Company entered into a Memorandum of Understanding (MOU) with a local company, being an industrial estate owner, whereby, by December 31, 2006, both parties shall enter into an agreement for the sale and purchase of land of approximately 31 rais in the amount totaling Baht 81.25 million for the development of a new cogeneration power plant. Advance payment of Baht 8.1 million has been paid on the signing date of the MOU and another Baht 8.1 million has been paid on September 30, 2006. Under certain conditions of the MOU, the Company shall be granted two options; 1) to terminate the MOU by January 31, 2007, and all payments made shall be returned to the Company, or 2) to extend signing the Land Sale and Purchase Agreement until December 31, 2007, in the event that the Company fails to sign the agreement within that date, all payments made by the Company shall be confiscated.

159

On January 3, 2007, the Company sent a notice to exercise the option to extend signing the Land Sale and Purchase Agreement until December 31, 2007. On December 11, 2007, the Company sent the letter requesting to extend the term of the MOU to be until April 30, 2008. Accordingly, the signing of the Land Sale and Purchase Agreement will be postponed to be by April 30, 2008. 4) On December 23, 2005, Glow IPP 3 Company Limited (formerly Glow Hemaraj Energy Company Limited) entered into a Land Deposit Agreement with a local company, being an industrial estate owner, to reserve land of approximately 134 rais at the price as specified in the agreement totaling Baht 268 million to be used for the development of a new IPP Project. A down payment of Baht 26.8 million has been paid by the subsidiary. The term of the agreement is 18 months and can be extended for another 6 months with an additional down payment of Baht 8.9 million. In the event that the subsidiary decides not to purchase the land within the term of the agreement, 50% of the down payment shall be returned to the subsidiary. On June 29, 2007, the subsidiary entered into the Land Purchase and Sale Agreement to purchase 111.3 rais of the above reserved land at the amount totaling Baht 222.6 million. Baht 44.5 million and Baht 40.0 million were paid on the signing date and on December 15, 2007, respectively. The remaining amount of Baht 111.3 million will be paid on March 31, 2008. Under the Land Purchase and Sale Agreement, the subsidiary has an obligation to purchase approximately 22.7 rais of the land at the price of Baht 2 million per rai in the event that the land will not be used for EGAT power line installation. In case EGAT still has not made decision until the end of 2012, the subsidiary shall enter into the Land Purchase and Sale Agreement within 90 days from the end of 2012. In addition, the subsidiary shall be responsible for the cost of engineering expenses and construction of raw water pipeline, and process waste water facility and waste water collection pipeline system in excess of the standard capacity. 5) Glow IPP Company Limited has performed an offline water wash at a 1-3 month interval and EGAT has duly paid for the Availability Payment during the period of such operations. The Availability Payment during the offline water wash operations, received from EGAT starting from the commercial operation date up to May 2005, was approximately Baht 30 million. However, EGAT has made a new interpretation of the PPA and has argued that EGAT is not entitled to pay the Availability Payment. Accordingly, EGAT has not paid for the Availability Payment since invoice of June 2005 up to December 2007 totaling Baht 36.7 million. The subsidiary has sent a letter to EGAT requesting for payment of the over due balance with interest. EGAT has refused to pay. The subsidiary believes that it is clearly stated in paragraph 22 of Schedule 2 of the PPA that a reduction in output or availability due to offline water washing during the allowed transient period shall not result in deductions from the Full Availability Payment.

160

Due to the difference in interpretation, as aforementioned, both parties agreed to bring the matter to arbitration in an amicable manner. If the subsidiary loses the case in arbitration, it will lose availability payment on a recurrent basis of approximately Baht 30 million per year until the PPA is terminated.

25. FINANCIAL INFORMATION BY SEGMENT The Company’s and its subsidiaries’ operations involve a single industry segment, the production and distribution of electricity, steam and water for industrial use and being carried on in the single geographic area being Thailand. As a result, revenues, operating profits and identifiable assets as reflected in these financial statements pertain to the aforementioned industry segment and geographic area. 26. SUBSEQUENT EVENT 26.1 On January 21, 2008, Glow SPP 3 Company Limited entered into a Shared Facilities Agreement to provide and allow the use of its Facilities to GHECO-One Company Limited in operating its new power plant for a period of 25 years commencing from the date that will be agreed later. 26.2 On January 25, 2008, the extraordinary shareholders’ meeting of GHECO-One Company Limited passed a special resolution to increase the registered capital from Baht 100 million to Baht 324 million by issuing 22.4 million new ordinary shares with the par value of Baht 10 each. On the same date, the subsidiary sent a notice to call for payment of the capital increase from Glow IPP 2 Holding Company Limited in the following sequence: - Baht 36.4 million within January 2008 - Baht 109.2 million within May 2008 27. APPROVAL OF THE FINANCIAL STATEMENTS These financial statements have been authorized for issuance by Finance Executive Management on January 28, 2008.