OPERATING RESULTS FOR THE SECOND QUARTER 2000

No. EGCO 320/ 406 August 10 , 2000 Attn : The President of the Stock Exchange of Thailand Subject : Financial statements and report concerning financial results of operation for the second quarter ended June 30,2000 We submit herewith the financial statements and the consolidated financial statements of Electricity Generating Public Company Limited and subsidiaries for the second quarter ended June 30,2000 and 1999 , of which the operating results for the second quarter of 2000 has been changed exceeding 20% from the corresponding period in 1999. 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 profit of Baht 712.31 MM. for the second quarter ended June 30,2000 is Baht 420.96 MM. or 37 % lower than net profit of Baht 1,133.27 MM. in 1999 due to the followings : 1) The impact of currency exchange in 2000 and 1999 resulted in the company's exchange loss of Baht 271.22 MM. and gain of Baht 195.99 MM., respectively, which affected the profits of 2000 decreasing of Baht 467.21 MM. 2) The total revenues,excluding shares of profit from subsidiary and associate companies, comprising sales and other revenues, totally increased Baht 204.58 MM..Sale revenues increased Baht 164.99 MM. resulted from the higher electricity rate of Khanom Electricity Generating Company Limited which reflected from higher cost, as were determined according to the Power Purchase Agreement (PPA) . 3) In 2000, the major maintenance of two subsidiary companies , Rayong Electricity Generating Co.,Ltd., and Khanom Electricity Generating Co.,Ltd., increased totally Baht 34.84 MM. and interest expenses of company increased Baht 55.73 MM. Accordingly, the net profit for the second quarter 2000 excluding foreign exchange loss of Baht 271.22 MM. is Baht 983.53 MM. which is Baht 46.25 MM. higher than net profit excluding foreign exchange gain in 1999. Yours sincerely, Mr. Machima Kunjara Na Ayudhya Deputy Managing Director & Chief Finance Officer Accounting & Budget Division Tel : 998-5160 Fax: 955-0956