OPERATING RESULTS FOR 1998 EXCEED 20%

No. EGCO 320/ 90 February 23 , 1999 Attn : The President of the Stock Exchange of Thailand Subject : Financial statements and report concerning financial results of operation for the year 1998 We submit herewith the financial statements and the consolidated financial statements of Electricity Generating Public Company Limited and subsidiaries for the year ended December 31,1998 and 1997 , of which the operating results for the year 1998 has been changed exceeding 20% from the year 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), under which any listed company has to explain the reason why the operating results for the year has been changed exceeding 20% from the previous year, we would like to clarify that the companys net profit of Baht 6,069.04 MM. for the year 1998 which is Baht 11,532.95 MM. higher than net loss of Baht 5,463.91 MM. in 1997 due to the followings : 1) The total revenues, comprising sales, services, other revenues and share of profits (losses) from associated companies, totally increased Baht 1,439.10 MM. or 16.23% increased. The major increasing was sale revenues which increased Baht 1,088.66 MM. in which the increased revenue from the higher availability factor in one of major subsidiary company and Baht 909.41 MM. compensation related to the First Amendment to PPA were included. Besides, interest revenue increased Baht 323.28 MM. due to larger amount of investments both in short-term and long-term although the market interest rates have come down so much since the 2 nd half of 1998. 2) Although the total expenses excluding impact from currency exchange increased Baht 442.09 MM. or 6.29% which resulted from the increasing of scheduled major maintenance of two major subsidiary companies at the amount of Baht 545.19 MM. and interest expenses increased Baht 120.62 MM. ,the impact of currency exchange in 1998 and 1997 which resulted in the companys exchange gain of Baht 3,231.54 MM. and loss of Baht 7,303.07 MM., respectively, affected the total expenses in declining of Baht 10,534.61 MM. Accordingly, the net profit for the year 1998 excluding foreign exchange gain of Baht 3,231.54 MM. is Baht 2,837.49 MM. Yours sincerely, Mr. Worawit Khamkanist Managing Director Accounting & Budget Division Tel : 955-0955 EXT.5500 Fax: 955-0956