Bangkok--15 Aug--Glow Energy Glow energy posted year to date consolidated total revenues of [Bt16,697mn], Earnings Before Interest Taxes Depreciation and Amortisation ("EBITDA") of [Bt4,066mn], and Normalised Net Profit ("NNP", net profit before unrealised foreign exchange gains and losses) of Bt2,139mn, for the first half of 2008. Mr. Peter Termote, CEO of Glow Group explained. "The year-on-year drop in EBITDA of -7.4% and normalized net profit of -5.1% was due to the negative macro-economic circumstances. Since the beginning of the year, electricity prices have not yet reflected rising fuel prices creating a temporary margin reduction of about -360 MTHB. In addition this year the THB(Thai Baht) strengthened by around 7.62%, resulting in earnings reduction of nearly -160 MTHB. A promising factor is that this year we further implemented several cost savings initiatives which improve the company's efficiency and earnings not only for this year but on a recurrent basis". Mr. Termote continued to add "We also strengthened the fundamentals of our cogeneration business with increasing electricity sales of 6% and steam sales of 1.6%. Today these additional sales do not yet add additional profit margin since the increasing sales volumes are still being produced by more expensive sources of supply. This will remain the case until our capacity expansion of 115 MW starts operations end 2009. In addition Glow signed year to date 152 MW of electricity and 358 tph of steam with industrial customers in addition to securing a 74 MW SPP contract selling to EGAT. Most of these new sales are for supply in 2010-2011". Several landmark expansions are being pushed ahead IPP Business On 10 July 2008, Gheco One, a joint venture of Glow Group and Hemaraj, issued to its contractor the notice to start the construction of Glow's second IPP power plant. The project will take 40 months to complete with commercial operation scheduled for November 2011. The new coal-fired IPP uses state-of the -art equipment which minimizes emissions & fuel consumption and will even reduce the total local emissions (NOX-SOX) for the local communities. The new project is important for the country since it will reduce dependency of the country's energy supply on natural gas and offers electricity at a cheap price, especially taking into account current construction costs and when compared to LNG-fired electricity. The company has finalized the PPA with EGAT which should be executed shortly. Cogeneration Business Meanwhile, on 1 August 2008, Glow has also issued to its contractor, the notice to start the construction of the 382 MWe gas-fired power plant. The project has already secured 70% of its capacity, and is part of the "Third Wave" petrochemical expansion. Glow is confident of signing the remaining 30% of its capacity before commercial operation in Q3 2011. The capacity of the coal-fired CFB3 115 MW plant, which is under construction, is already fully sold. Mr. Peter Termote said that "We continue to expand as planned for both the IPP and the cogeneration businesses. The three high value creating investments under construction will require a capex of more than USD 1,800 mn (or about THB 60,000 mn) in the coming three years. Due to synergies, the expansions are highly profitable and will completely put Glow at a new earnings level from 2010 onwards". The construction costs for the 115 MW CFB 3 and the 382 MWeq cogeneration expansions include investments in power and steam distribution systems and amount to 725 MUSD. Meanwhile, Glow will only be required make equity investment for its coal-fired IPP project for an amount of 225 MUSD around year 2010-2011. Khun Suthiwong Kongsiri, Glow's CFO added "There is no need for Glow to increase its registered capital to fund all the expansions in Thailand. Glow will have sufficient operating cash flow and the re-leveraging capacity of its balance sheet to fund these expansions while still able to pay its dividend as usual". About Glow Energy Glow Energy is a member of the Glow Group who is a major energy player in Thailand. Glow Group combined installed capacities include 1,708 MW of electricity and 967 tons per hour of steam. Glow Group generate and supply electricity to EGAT Public Company Limited (EGAT) under Thailand's SPP (Small Power Producer) and IPP (Independent Power Producer) programs, as well as electricity, steam, industrial water and services to large industrial customers principally located in the Map Ta Phut area and nearby. GDF SUEZ Energy International is Glow Energy's major shareholder and is a division of the GDF SUEZ Group, one of the largest international industrial and services groups in the world. For more information about GDF SUEZ or GDF SUEZ Energy International, please visit the companies' websites at www.gdfsuez.com and www.suezenergyint.com. For more information about the Glow Group please go to www.glow.co.th For further details please contact Suthiwong Kongsiri Glow Energy Plc. Tel. 02-670-1500-1 Email [email protected]