CLARIFICATION ON LOAD REDUCTION AT REGCO

No. EGCO 310/770 Date: December 17, 1999 Attn: The President of the Stock Exchange of Thailand Subject: Clarification on load reduction at REGCO According to the news on load reduction at Rayong Electricity Generating Company Limited (REGCO) by Electricity Generating Authority of Thailand (EGAT), EGAT had a plan to shut down some power plants totaling 2,340 MW in 2000-2001, which would include 308 MW load reduction at REGCO in 2001 depending upon the market situation in that period. Electricity Generating Public Company Limited (EGCOMP) would like to clarify the fact that REGCO has not been currently informed to shut down as stated in the above mentioned news. In addition, we would like to confirm that REGCO's significant revenue and profit haven't depended on dispatching electricity which involves with energy payment. As a matter of fact, they are linked to capacity charge as stipulated in the Power Purchase Agreement between EGAT and REGCO, the principle of which is described in Annual Registration Statement (Form 56-1). Therefore, there will be no significant impact to the earning of REGCO. In case that EGAT may executes the plan to dispatch less energy than normal situation from REGCO, REGCO will still be able to provide the full availability and receive the same capacity payment in any dispatching condition for 20 years, with 15 years remaining to EGAT, according to such power purchase agreement. In case there is a few electricity demand, some dispatching reduction will save fuel cost which benefits to the country. In addition, REGCO, at the same time, can maintain its earning and credibility for the good investment in Thailand. Sincerely yours, Machima Kunjara Na Ayudhaya Deputy Managing Director - Finance Acting for Managing Director