CH Karnchang PCL : Notification of Results of the Plaint Filed by Joint Venture BBCD with the Expressway Authority of Thailand

No. CK-17-0000-PO-L-0037

(Translation)

June 29, 2017

Re: Notification of Results of the Plaint Filed by Joint Venture BBCD Attn.: President of the Stock Exchange of Thailand

CH. Karnchang Public Company Limited (the "Company") hereby informs the Stock Exchange of Thailand of the background and results of the case in which Joint Venture BBCD, comprising Bilfinger + Berger AG (with its 40 percent proportion in the joint venture), CH. Karnchang Public Company Limited (with its 35 percent proportion in the joint venture), and Walter Bau AG (with its 25 percent proportion in the joint venture), filed a claim for payment of the additional costs from the Expressway Authority of Thailand under the Contract for the Design and Construction of Bang Na - Bang Pli - Bang Pakong Expressway Project, per the details as follows:

1. In 2000, Joint Venture BBCD claimed the additional costs from the Expressway Authority of Thailand (the Employer). Subsequently, the Arbitral Tribunal rendered its arbitral award requiring the Employer to pay such additional costs together with interest to Joint Venture BBCD. At this point, Joint Venture BBCD then recorded such amount of money in dispute as assets and revenues in the financial statements for 2001, under which the Company's proportion in the joint venture was approximately Baht 2,500 Million.

2. As a result of delay in payment of such costs, Joint Venture BBCD then filed a plaint against the Employer with the Civil Court for enforcement of the arbitral award. On December 30, 2003, the Civil Court rendered its judgment enforcing the arbitral award, whereby the Employer was required to make such payment to Joint Venture BBCD under the arbitral award.

3. On February 15, 2007, the Supreme Court reversed the Civil Court's judgment which enforced the arbitral award requiring the Employer to make the payment to Joint Venture BBCD. Therefore, Joint Venture BBCD recorded the allowance for doubtful accounts in the full amount for the accounts receivable - claims for additional costs as expenses in net profit or loss for 2006, under which the Company's proportion in the joint venture was approximately Baht 2,500 Million.

4. February 11, 2008, Joint Venture BBCD filed a plaint against the Employer with the Civil Court for claiming the costs paid by Joint Venture BBCD from the Employer on the grounds of undue enrichment. As such, the total costs and interest calculated until the plaint's date were approximately Baht 3,400 Million (under the Company's proportion in the joint venture).

5. On September 15, 2011, the Civil Court made the judgment requiring the Employer to make the payment to Joint Venture BBCD in the amount of Baht 1,750 Million (under the Company's

   proportion in the joint venture), together with interest at the rate of 7.5 percent per annum from the principal commencing from February 15, 2007 onwards until the Employer would make the debt payment to Joint Venture BBCD in full.

6. On December 27, 2013, the Appeal Court rendered its judgment dismissing the plaint filed by Joint Venture BBCD.

7. On June 22, 2017, the Supreme Court affirmed the judgment of the Appeal Court.

However, the above-mentioned result of the judgment of the Supreme Court in no way affects the Company's financial statements because Joint Venture BBCD has recorded the allowance for doubtful accounts in the full amount since 2006. Currently, Joint Venture BBCD is considering taking further legal actions.

Please be informed accordingly.

Very truly yours,

-Signature-

(Dr. Anukool Tuntimas) Director and Executive Vice President,

Human Resource and General Administration