OPERATING RESULTS FOR Q3-1999 CHANGED EXCEEDING 20%

No. EGCO 320/ 684 November 4 , 1999 Attn : The President of the Stock Exchange of Thailand Subject : Financial statements and report concerning financial results of operation for the third quarter ended September 30,1999 We submit herewith the financial statements and the consolidated financial statements of Electricity Generating Public Company Limited and subsidiaries for the third quarter ended September 30,1999 and 1998 , of which the operating results for the third 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 company's net loss of Baht 230.08 MM. for the third quarter ended September 30,1999 is Baht 1,642.36 MM. or 116.29% lower than net profit of Baht 1,412.28 MM. in 1998 due to the followings : 1) The impact of currency exchange in 1999 and 1998 resulted in the company's exchange loss of Baht 968.90 MM. and gain of Baht 893.05 MM., respectively, which affected the expenses of 1999 increasing of Baht 1,861.95 MM. 2) In 1999, the major maintenance of two subsidiary companies , Rayong Electricity Generating Co.,Ltd., and Khanom Electricity Generating Co.,Ltd., decreased totally Baht 309.91 MM. from 1998 , as was expected according to the schedule of annual maintenace. Besides, interest expenses of the aforesaid two subsidiary companies decreased Baht 66.60 MM. due to lower interest rate payments and decreasing of the principle of loans. 3) The total revenues, comprising sales, services and other revenues, totally decreased Baht 60.44 MM. or 2.47% .The major decreasing was interest revenue which decreased Baht 200 MM. due to the market interest rates have come down so much.Sale revenues increased Baht 121.14 MM. resulted from the higher Capacity Rate(CR) and VOM Rate of Rayong Electricity Generating Company Limited, as were determined according to the Power Purchase Agreement (PPA) . Accordingly, the net profit for the third quarter 1999 excluding foreign exchange loss of Baht 968.90 MM. is Baht 738.82 MM. which is Baht 219.58 MM. higher than net profit excluding foreign exchange gain in 1998. Yours sincerely, Mr. Worawit Khamkanist Managing Director Accounting & Budget Division Tel : 998-5301 Fax: 955-0956