POLICY ON BO NOK POWER PLANT PROJECT

No. EGCO 350/158 Date : May 13, 2002 Attn : President of the Stock Exchange of Thailand Subject: Policy on Bo Nok Power Plant Project According to the government's decision on the coal-fired power plant projects, Electricity Generating Authority of Thailand (EGAT) would have to negotiate with the project's owners to postpone the projects with the consideration on the electricity reserve margin and the cost of generation, including the economic situation, which would have a direct influence on the electricity demand. Electricity Generating Public Company Limited (EGCOMP), which has 30% stake in Bo Nok Power Plant Project, would like to inform its policy to its investors regarding this matter as follows; 1. EGCOMP is willing to talk to EGAT under the Power Purchase Agreement (PPA) in order to find the best solution, which fairly benefits every related party. 2. The delay of the project would have some effect on EGCOMP's cash flow projection; hence, the cash flow receipt from the project to EGCOMP would be longer than previously expected. However, with the fair mutual agreement between EGAT and the project owners, EGCOMP has confidence that such matter would not significantly affect its shareholder value. 3. In case of economic revival in the near future, which will result in higher demand of electricity, EGCOMP sees the opportunity to pursue its growth because it has potential to expand the existing power plants and to implement new green-field projects in the future. Therefore, EGCOMP will be able to generate higher than or equal to the return from Bo Nok Power Plant Project. Yours sincerely, Sitthiporn Ratanopas President & CEO