TERIM FINANCIAL Q2-99 (CORRECTED THE NOTE 7.2)

Electricity Generating Public Company Limited Page 18 Notes to the interim company financial statements and consolidated financial statements - June 30, 1999 continued The No. 1 debentures of Rayong Electricity Generating Company Limited are divided into 4 parts, being repayable in 5 years, 7 years, 10 years, and 12 years in 1999, 2001, 2004 and 2006, respectively. The No. 2 debentures are divided into 12 parts, being repayable in 1 - 12 years, from 1995 - 2006. The interest is payable semi-annually. The debentures of Khanom Electricity Generating Company Limited are secured debentures with the holders' names being registered, totalling 750,000 units of Baht 10,000 face value each, for a total of Baht 7,500 million. The total debentures were offered to the public and are repayable within 15 years from the date of issuance on June 14, 1996, at six monthly intervals to 2011. The interest is payable semi-annually. Both subsidiaries are also required to maintain a reserve for repayment of principal and interest and to pledge the relevant agreements as collateral as mentioned in notes 5 and 6. Cost of sales 10. Cost of sales is comprised of main expenses; repair and maintenance expenses, depreciation expenses, and insurance expenses. Major repair and maintenance expenses are recorded as expenses when are incurred. Commencing from the second quarter of 1998, a reserve for repair and maintenance based on the annual budget of major repair and maintenance expenses, is included in the interim financial statements. The major repair and maintenance expenses for the second quarter and the six-month period of 1999 amounted to Baht 114 million and Baht 228 million and for the second quarter and the six-month period of 1998 amounted to Baht 410 million and Baht 626 million, respectively. Unaudited Reviewed Electricity Generating Public Company Limited Page 19 Notes to the interim company financial statements and consolidated financial statements - June 30, 1999 continued Exchange losses (gains) 11. Exchange losses (gains) in the consolidated financial statements were mainly related to the translation of long-term loans of the two subsidiaries in US dollar to Thai Baht at the exchange rates ruling at the balance sheet date. Shares of profits from subsidiaries for the second quarter and the six-month period includes exchange gains of Baht 198 million and exchange losses of Baht 31 million for 1999 and exchange losses of Baht 1,047 million and exchange gains of Baht 1,585 million for 1998, respectively. Dividends 12. At the annual shareholders' meeting dated April 29, 1999, it was approved to declare a dividend from 522,809,200 shares of Baht 1.27 each, totalling Baht 663 million. The dividends were paid to the shareholders during this quarter. Commitment and contingent liabilities 13. (a) As at June 30, 1999 the company had commitments under contracts for construction of Baht 63 million. Unaudited Reviewed Electricity Generating Public Company Limited Page 20 Notes to the interim company financial statements and consolidated financial statements - June 30, 1999 continued (b) As at June 30, 1999 the company had commitments under the Sponsor Support Agreement, which were made for subsidiary and associated companies in respect of the following on behalf of the company : Currency Baht US Dollar Raw material purchase - 5,245,740 Performance bond 17,192,387 546,470 (c) As at June 30, 1999, the two subsidiaries had not entered into forward exchange contracts to cover the exchange risk relating to long-term loans of US Dollars 377.2 million. However, such exchange risk is partially covered by The First Amendment to Power Purchase Agreements dated January 30, 1998 as described in note 5. (d) The two subsidiaries have entered into insurance agreements with two local insurers. These agreements are for the purpose of insurance on the power plants, a certain number of equipment, consequent loss, and third party liabilities, covering a period of 3 years commencing on December 31, 1998 and January 1, 1999. The premium for such insurance for the first year will be paid at US Dollars 1,167,885 and for the next two years at the agreed amounts on the condition that there will be no claims occurred in such period. (e) A subsidiary of the company also entered into spare parts repair service agreements with two suppliers one of which is an affiliated company. According to the agreements, the subsidiary has committed to have these suppliers repair a certain number of spare parts specified in the agreements. These agreements, totalling Baht 49 million and GBP 895,438, shall be effective for a period of 2 years commencing in the first quarter of 1999. Unaudited Reviewed Electricity Generating Public Company Limited Page 21 Notes to the interim company financial statements and consolidated financial statements - June 30, 1999 continued Comparative figures 14. As a result of reclassifications of some certain items in the 1999 interim financial statements, the comparative figures in the 1998 financial statements have been amended accordingly. Statements of cash flows for the second quarter and the six-month period of 1999 has been prepared in accordance with the regulation of the Stock Exchange of Thailand. The comparative statements of cash flows for the second quarter and the six-month period of 1998 have been prepared accordingly. Subsequent event 15. On July 22, 1999, the company entered into the Shares Purchase Agreement to acquire 24,150,000 common shares of Egcom Tara Company Limited, being equivalent to 70% of total common shares, totalling Baht 398,475,000. The payments shall be made in 3 installments according to the Agreement. Unaudited Reviewed Electricity Generating Public Company Limited Page 22 Notes to the interim company financial statements and consolidated financial statements - June 30, 1999 continued The Year 2000 issue 16. The company and its subsidiaries have identified the systems which will be affected by the Year 2000 issue to be the production system and certain hardwares of the general operating systems, which are required to be changed. As of June 30, 1999, the problems, which are expected to occur before implementation, of the production and plant maintenance system of the subsidiaries have been resolved ahead of time (scheduled for completion in September 1999). The company and its subsidiaries are in the final step of implementation phase and in the process of contingency plan completion for all systems. These activities are all expected to be completed on schedule in September 1999. For the business application system - SAP, the company and its subsidiaries has to modified and validated again as the supplier recommended to upgrade to the minimum supported version for the system environment. The expenditures incurred are approximately 75% of the total budget (the budget is about Baht 66 million). Auditor's report page 1