6. Future Projects

In 2007, the company has 2 projects under implementation, sugarcane
plantation and sugar mill project in Laos, and sugarcane plantation and
sugar mill project in Cambodia.

The followings are the project details:

Sugarcane Plantation and Sugar Mill in Laos

The project is under Savannakhet Sugar Corporation, a subsidiary that
Khon Kaen Sugar Industry Public Company Limited holds 97% of the shares.
A 30-year concession is granted for the company’s sugarcane plantation
on a 10,000-hectare (62,500-rai) land in Savannakhet. Sugarcane
plantation commenced in 2006, and has been expanded continuously. The
company aims to begin its sugar mill construction in 2008 and sugarcane
crushing in early 2009. The primary investment amounts to about THB
1,200 million. Savannakhet Sugar Corporation has an EBA (Everything but
Arms) quota on exporting sugar to the EU at a higher price.

Potential difficulties that might prevent the project from being
completed as planned include unexpected complications in plantation,
locals’ undefined parcels of lands, and unclearly defined boundary of
the land under the concession.

Sugarcane Plantation and Sugar Mill in Cambodia

The project is under Koh Kong Plantation Co., Ltd. and Koh Kong Sugar
Industry Co., Ltd, which are subsidiaries that Khon Kaen Sugar Industry
Public Company Limited holds 50% of the shares. The registration for
capital raise is processing in order to allow Khon Kaen Sugar Industry
Co.,Ltd. to invest more shares in Koh Kong Sugar Industry. Both
companies are granted 90-year concessions for sugarcane plantation on a
total area of 20,000 hectares (125,000 rai) in Koh Kong. Sugarcane
plantation commenced in 2006, and has been expanded continuously. Sugar
mill construction is scheduled for year 2008. Sugarcane crushing is
scheduled for early 2009. The primary investment amounts to about USD
100 million. An EBA (Everything but Arms) quota allows the sugar
produced to be exported to the EU at a higher price.

Potential difficulties that might prevent the project from being
completed as planned include unexpected complications in plantation and
political uncertainty.

Besides the two ongoing projects, KSL also has future opportunities
being under study as follows:

(1) Licenses to operate two more ethanol plants in Karnchanaburi and
Cholburi provinces: The plants, which will be constructed near the
Company’s sugar mills, will utilize molasses in their future ethanol
production. The Company has been permitted and supported by BOI to
complete the projects. However, the ventures have been delayed due to
lack of the government’s concrete policy on ethanol businesses. The
license (once the ventures are undertaken) would allow the company to
increase its ethanol production from 150,000 liters per day to 400,000
liters per day.

(2) Permission to relocate and expand two sugar mills: According to the
cabinet meeting’s resolution on October 16, 2007: (1) New Kwang Soon Lee
Sugar Factory Co., Ltd. (subsidiary) may move its sugar mill in Cholburi
Province to Sa Kaeo Province. The mill is permitted to increase its
daily production capacity of 6,479 tons of sugarcane to 20,400 tons; and
(2) New Krung Thai Sugar Factory Co., Ltd. (subsidiary) may move its
sugar mill in Tamaka District to Bo Ploy District, Karnchanaburi
Province. The mill is permitted to increase its daily production
capacity of 8,385 tons of sugarcane to 20,400 tons.

The future investment opportunities are under study in details in terms
of technical and financial feasibility, investment strategies, potential
risks, timing, investment planning, and financial capability. Decision
and progress will be regularly reported.