SET Announcements

MD.126/2010 August 11, 2010 Re:Connected Transactions regarding the service of aviation fuel pipeline receiving facilities and lease for the diesel pipeline receiving facilities To:President The Stock Exchange of Thailand Bangkok Aviation Fuel Services Public Company Limited (BAFS) would like to inform that the Board of Directors Meeting No. 3/2010 on August 11, 2010 approved the connected transactions regarding the service of aviation fuel pipeline receiving facilities and lease for the diesel pipeline receiving facilities between BAFS and Fuel Pipeline Transportation Limited (FPT), which can be summarized as follows: (1) Connected Transaction regarding the service of aviation fuel pipeline receiving facilities 1. Date/Month/Year that transaction will occur: From September 1, 2010 2. Relevant Parties: Service Provider: Bangkok Aviation Fuel Services Public Company Limited (BAFS) Customer: Fuel Pipeline Transportation Limited (FPT) The relationship of service provider and customer: Ministry of Finance is indirect major shareholder of BAFS and FPT. 3. General explanation regarding the nature of transaction BAFS services the aviation fuel pipeline receiving facilities to FPT at Don Mueang service station Term of agreement: 3 years on the condition that each renewal term will be 3 years. 4. Total value of transaction 4.1 Total value 4.1.1 Pricing Criteria BAFS shall charge 21.5 % of FPT's revenue from JET A-1 transporting (before discount and tax). 4.1.2 Total value of transaction Total value of transaction for 3 years is Baht 6.2 million. 4.2 Term of Payment: Monthly installment 5. Size and amount of transaction This transaction is connected transaction regarding supporting normal business transaction, without general trading conditions. The total value is Baht 6.2 million or 0.25% of net tangible assets (calculated from the financial statement as of June 30, 2010). 6. Characteristics and scope of interests of connected persons when agreeing to enter into such connected transaction Ministry of Finance is indirect major shareholder of BAFS and FPT. BAFS as a service provider will receive benefit directly from this transaction in form of 3 years service fee of Baht 6.2 million. 7. The opinion of the Board of Directors and the Audit Committee The Audit Committee Meeting No. 4/2010 on August 6, 2010 and the Board of Directors Meeting No. 3/2010 on August 11, 2010, which directors who have interests not attend the meeting and have no right to vote in the meeting, have the opinion that this transaction is reasonable and benefits to BAFS's operation since BAFS changes the operation process of the aviation fuel pipeline receiving facilities. It benefits BAFS to easier manage the aviation fuel transporting plan. BAFS services FPT by FPT transports aviation fuel of oil companies via BAFS's pipeline receiving facilities and then BAFS delivers the aviation fuel from the storage tank to refuel aircraft at Don Mueang Airport. Therefore, BAFS has to change the characteristics of transaction to be the service of aviation fuel pipeline receiving facilities to replace the lease for the aviation fuel pipeline receiving facilities. (2) Connected Transaction regarding lease for the diesel pipeline receiving facilities 1. Date/Month/Year that transaction will occur: From September 1, 2010 2. Relevant Parties: Lessor: Bangkok Aviation Fuel Services Public Company Limited (BAFS) Lessee: Fuel Pipeline Transportation Limited (FPT) The relationship of lessor and lessee: Ministry of Finance is indirect major shareholder of BAFS and FPT. 3. General explanation regarding the nature of transaction BAFS leases out the diesel pipeline receiving facilities to FPT at Don Mueang service station. Term of agreement: 3 years on the condition that each renewal term will be 1 years. 4. Total value of transaction 4.1 Total value 4.1.1 Pricing Criteria BAFS charges monthly rental fee based on total volumes which are stored in as the agreed rate. And the rate is figured out from the project cost. 4.1.2 Total value of transaction Total maximum value of transaction that may occur for 3 years is Baht 25.7 million. 4.2 Term of Payment: Monthly installment 5. Size and amount of transaction The above transaction is connected transaction regarding supporting normal business transaction, without general trading conditions. The maximum total value that may occur is Baht 25.7 million or 1.02% of net tangible assets (calculated from the financial statement as of June 30, 2010). 6. Characteristics and scope of interests of connected persons when agreeing to enter into such connected transaction Ministry of Finance is indirect major shareholder of BAFS and FPT. BAFS as a lessor will receive benefit directly from this transaction in form of 3 years rental charge maximum of Baht 25.7 million. 7. The opinion of the Board of Directors and the Audit Committee The Audit Committee Meeting No. 4/2010 on August 6, 2010 and the Board of Directors Meeting No. 3/2010 on August 11, 2010, which directors who have interests not attend the meeting and have no right to vote in the meeting, have the opinion that this transaction is reasonable and has highest benefit to BAFS. since FPT is the only one who can transports diesel via pipeline system to BAFS's pipeline receiving facilities . In addition, FPT has the existing customers, oil companies, which transported fuel through this pipeline. Therefore, it can save operation cost and also generate the revenue together by utilized FPT's customers. Furthermore, it is the highest beneficial for the asset utilization. Please be informed accordingly. Yours sincerely, (M.R. Supadis Diskul) Managing Director Legal and Securities Division Tel 0-2834-8913 Fax 0-2834-8920