CLARIFICATION ON THE INVESTMENT IN RATCH

No. EGCO 310/90 Date : February 23, 2001 Attn : President of the Stock Exchange of Thailand Subject: Clarification on The Investment in RATCH Reference is made to the news in Reuters dated February 22, 2001 stated that Mr. Sitthiporn Ratanopas, the Managing Director of Electricity Generating Public Company Limited (EGCOMP), gave an interview that 1. EGCOMP would like to purchase 20% stake in Ratchaburi Electricity Generating Public Company Limited (RATCH) by purchasing 10% stake of RATCH from Electricity Generating Public Company Limited (EGAT), 5% stake from EGAT's employees and another 5% stake from the floating shares in the Stock Exchange of Thailand (SET). 2. EGCOMP plans to increase its stake in Eastern Water Resource Development and Management Public Company Limited (EASTW) up to 20 % within 1-2 months, which EGCOMP informed SET that EGCOMP presently held 15.74% in EASTW's shares. After holding 20% EASTW's shares, EGCOMP will request for a seat in EASTW's Board of Directors. EGCOMP would like to clarify the news as follows: a. Mr.Sitthiporn gave the interview on the principle of EGCOMP's investment in power projects and other related projects that EGCOMP, in general, will invest in 20% of registered and paid-up capital of each company for the significant influence. In the case of RATCH, one possible method and procedure under the principle is to discuss with EGAT for the purchase of its 10% stake of RATCH, to purchase 5% stake from EGAT's employees and another 5% stake from the floating shares in SET. Besides, the investment in RATCH will not cause any conflict of interest. EGCOMP may have to explain and prove it in accordance with SET's regulation by showing all facts concerning the business agreements. However, EGCOMP, presently, has no policy to invest in RATCH. b. As for the case of EASTW, EGCOMP will invest in EASTW according to the aforementioned principle. If EGCOMP holds 20% stake of EASTW, EGCOMP will request for a seat in EASTW's Board of Directors for the significant influence. In addition, EGCOMP has consistently disclosed the information on investment in EASTW pursuant to Section 246 of the Securities and Exchange Act B.E. 2535 and Regulations of the Stock Exchange of Thailand, Conditions and Procedures Governing the Disclosure of Information or any Act of a Listed Company. Yours sincerely, Machima Kunjara Na Ayudhya Acting for Managing Director