RESULTS OF OPERATION FOR Q2 ENDED JUN 30,98

No. EGCO 320/335 August 7 , 1998 Attn :The President of the Stock Exchange of Thailand Subject :Financial statements and report concerning financial results of operation for the second quarter ended June 30,1998 We submit herewith the financial statements by equity method and the consolidated financial statements of Electricity Generating Public Company Limited and subsidiaries for the second quarter ended June 30,1998 and 1997 , of which the operating results for the second quarter of 1998 has been changed exceeding 20% from the same period in 1997. In order to comply with the Regulation of the Stock Exchange of Thailand Re: Rules , Conditions , and Procedure Governing Preparation and Filing of Financial Statements and Reports Concerning Financial Status and Results of Business Operations of Listed Companies (No.1) B.E.2541 item 4(7),we would like to clarify that the company had a net loss of Baht 307.61 MM.for the second quarter of 1998 whick represented a 141.43% fall from a net profit of Baht 735.33 MM. during the same period in 1997.This decline in net profit was due to:- * the total expenses increased Baht 1,569.52 MM. or 108 % due to the increasing of two subsidiary companies' foreign exchange loss of Baht 1,108.91 MM., the interest expenses of Baht 115.81 M.M. and the maintenance expenses of Baht 349.87 MM. * the total revenue for second quarter of 1998 increased Baht 526.20 MM. or 24% from the same period of 1997 which resulted from the rising of Baht 381.56 MM. from sale revenue of which Baht 223.22 MM. from compensation related to The First Amendment to PPA was included.Besides,other revenue increased Baht 144.64 MM. due to the higher interest rate. Since the total expenses increased in the higher percentage than the total revenue,the operating result for the second quarter of 1998 declined from the same period of 1997. However , the company operating result will be net profit of Baht 739.21 MM. before foreign exchange loss. Sincerely yours, Mr. Worawit Khamkanist Managing Director Accounting & Budget Division Tel : 513-2330 EXT.1800 Fax: 513-7335-6