CLARIFICATION ON NEWLY ISSUED SHARES

No. EGCO 310/388 Date: September 3, 1998 Attn: The President of the Stock Exchange of Thailand Subject: Clarification on newly issued shares According to the requesting for the "H"" sign of Electricity Generating Public Company Limited (EGCOMP) as the news in the Manager Daily dated September 3, 1998 stated that EGCOMP is preparing to increase capital for CLP, Hong Kong instead of selling the stake of Electricity Generating Authority of Thailand (EGAT) in EGCOMP so that EGAT can maintain 25% stake in EGCOMP in compliance with EGAT's privization. EGCOMP would like to clarify that the additional shares of 4.1% to CLP Power Projects (Thailand) Limited can be allotted by 2 alternatives: 1. EGCOMP issues additional shares to CLP Power Projects (Thailand) Limited or 2. EGAT sells its stake in EGCOMP to CLP Power Projects (Thailand) Limited. Having CLP Power Projects (Thailand) Limited as the EGCOMP's Strategic Investor increases strong potential to invest in target projects such as acquiring the first round IPP and/or SPP, EGAT's privatisation program ie. Ratchaburi Project and other Cross Border Line Projects. The above mentioned projects are all or partly expected to be successfully implemented, depending on the quality, the return on investment and the risks associated at the level satisfied by EGCOMP. In any events, EGCOMP believes that there is a good potential to process further for investment decision making. Therefore, EGCOMP might increase capital in order to invest in the feasible projects within 2 years in compliance with the shareholder agreement. EGCOMP realises that increasing capital shall be fair and appropriate among all of the shareholders. Sincerely yours, Machima Kunjara Na Ayudhaya Deputy Managing Director - Finance Acting for Managing Director