CLARIFICATION ON EGCOMP'S INTEREST IN BUYING A STAKE IN BCP

No. EGCO 310/325 Date: August 3, 1998 Attn: The President of The Stock Exchange of Thailand Subject: Clarification on EGCOMP's interest in buying a stake in BCP According to many newspapers dated August 3, 1998, for example: Bangkok Post, The Nation, Kaew Hun and Phu Chat Kharn Rai Won, the summarized of which stated that Electricity Generating Public Company Limited (EGCOMP) is interested in buying BCP 25% at the price over the par value of Baht 10. EGCOMP would like to clarify that in the case of BCP, EGCOMP is in the process to consider investment under 3-4 good principles as follows: 1. Must be a good investment project having a general good return. In particular, if it could be a project that could help public sector and the public agencies see the clear benefit of EGCOMP's holding in BCP. EGCOMP may maximize the return on both energy and electricity production and in order to achieve the maximized benefit, the public agencies concerned may set the good conditions for EGCOMP and BCP to establish such a high quality project, with the low risk ie. allowing to readjust or reconfigulate the refinery plant together with allowing to produce electricity to save costs and provide most efficient product. In this case, EGCOMP is simply interested to take the investment. 2. The portion of 25% stake which is sufficient for a good control investment. 3. There shall not be an environmental problem and BCP area is large enough to develop a project that will not create such a problem. 4. Other necessary conditions. As for the price of BCP which EGCOMP may buy at over the par value of Baht 10 per share, EGCOMP views that the buying price should reflect the sufficient good return. This also depends on the favourable conditions the public agencies may determine under the above mentioned good investment principles. This will help the government to maximize her own asset and induce the investment from both domestic and foreign investor through EGCOMP who currently enjoys a high credit acceptance from a success in EGAT sell of EGCOMP share.Such process is expected to take approximately 6 months Sincerely Yours, Worawit Khamkanist Managing Director