(6/2008)

On 29 February 2008, the Bank of Thailand (“BOT”) issued the Notice No. 17 (“Notice”) regarding the cancellation of the unremunerated reserve requirement, the amendment of the rules and practices in connection with the deposit and withdrawal of money from a non-resident Baht account and the revocation of the related notifications. The Notice will become effective on 3 March 2008. The following is a summary of the main principles of the Notice:

1. Authorized commercial banks are permitted to purchase foreign currencies against Baht from their customers in the full amount without the requirement to withhold 30 percent as a reserve fund. Whenever purchasing foreign currencies from a non-resident, the commercial bank is required to inform the customer of the rules and conditions relating to non-resident Baht accounts.

2. Non-resident Baht accounts are now divided into two categories: non-resident Baht accounts for investment in securities and other financial instruments (NRBS) and non-resident Baht accounts for general purposes (NRBA).

3. The existing categories of special non-resident Baht accounts for investment in equity securities and forward contracts (SNS), for investment in debt securities and unit trusts (SND) as well as for trade and services (SNT) will be revoked.

However, until 14 March 2008, a person presently holding SNS or SND can continue to treat such accounts as NRBS, the combined outstanding balance of which must not exceed Baht 600 million, while a person presently holding SNT can continue to treat such account as NRBA, whose combined outstanding balance must not exceed Baht 400 million.

4. Deposits and withdrawals of funds from NRBS and NRBA must be made in accordance with the following rules and conditions:

4.1. Money in NRBS and NRBA must be deposited or withdrawn for the purpose specified for each type of account and the commercial bank must request the related documents from its customers.

4.2. Baht can only be transferred between non-resident Baht accounts of the same type. Transfers of Baht between NRBS and NRBA will not be permitted after 14 March 2008.

5. Reserves which the commercial banks have collected but have yet to remit to the BOT will be refunded to customers within seven (7) business days from the announcement of the Notice. For reserves which have been remitted to the BOT, customers who have consented to reserve the funds must submit a request for a full refund from the BOT through the commercial bank who withheld the reserves. The customers will receive the refund from the commercial bank on the business day on which the competent officer of the BOT remits the funds to the commercial bank. Please note that the refund will be remitted within seven (7) business days after the competent officer has received the request and has verified the name of the customer and the amount of the reserve.

Customers will not receive any interest arising from the reserves. In the case where a customer does not request a refund within a period of two (2) years from the date on which the withholding was originally agreed, it will be deemed that the customer does not wish to receive the reserve in full.

6. A customer who has engaged in hedging transactions for the purpose of exemption from the reserve requirement and wishes to cancel or not renew such transactions must submit an application for exemption from or relaxation of the exchange control regulations together with the required documents for approval.