F/S RESULTS OF OPERAION EXCEED 20999

No. EGCO 320/ 306 May 11 , 1999 Attn : The President of the Stock Exchange of Thailand Subject : Financial statements and report concerning financial results of operation for the first quarter ended March 31,1999 We submit herewith the financial statements and the consolidated financial statements of Electricity Generating Public Company Limited and subsidiaries for the first quarter ended March 31,1999 and 1998 , of which the operating results for the first quarter of 1999 has been changed exceeding 20% from the corresponding period in 1998. 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 has been changed exceeding 20% from the same period of previous year, we would like to clarify that the companys net profit of Baht 713.70 MM. for the first quarter ended March 31,1999 is Baht 3,067.79 MM. or 81.13% lower than net profit of Baht 3,781.49 MM. in 1998 due to the followings : 1) The total revenues, comprising sales, services, other revenues and share of profits (losses) from associated companies, totally decreased Baht 433.18 MM. or 14.91% .The major decreasing was sale revenues which decreased Baht 384.01 MM. in which Baht 167 MM. compensation related to the First Amendment to PPA was included. Besides, interest revenue decreased Baht 139.41 MM. due to the market interest rates have come down so much at the beginning of 1999. 2) The impact of currency exchange in 1999 and 1998 resulted in the companys exchange loss of Baht 228.88 MM. and gain of Baht 2,631.63 MM., respectively, which affected the expenses of 1999 increasing of Baht 2,860.51 MM. 3) The total expenses excluding impact from currency exchange decreased Baht 228.07 MM. or 12.97 % which resulted from the decreasing of scheduled major maintenance of two major subsidiary companies at the amount of Baht 93.59 MM. and interest expenses decreased Baht 144.89 MM. Accordingly, the net profit for the first quarter 1999 excluding foreign exchange loss of Baht 228.88 MM. is Baht 942.58 MM. Yours sincerely, Mr. Worawit Khamkanist Managing Director Accounting & Budget Division Tel : 955-0955 EXT.5500 Fax: 955-0956