CLARIFICATION ON THE NEWS "NAM THEUN 2'S TRANMISSION SYSTEM"

No. EGCO 350/233 Date : July 4, 2002 Attn : President of the Stock Exchange of Thailand Subject : Clarification on EGCOMP's plan to participate in the bidding of the Nam Theun 2's transmission system According to the article on Kaohoon Newspaper dated 4th July 2002, Electricity Generating Public Company Limited or EGCOMP planned to participate in the bidding of the Nam Theun 2 's transmission system from Thailand to Laos with the approximate value of 1 billion baht. Mr. Machima Kunjara Na Ayudhya, Senior Executive Vice President, Finance and Administration, of EGCOMP, would like to clarify that the above statement is incorrect, which may have a negative impact to EGCOMP. As stated in the Annual Registration Statement or 56-1 (Part 1-executive summary on page 1), EGCOMP' s core business is to generate and sell electricity to domestic and foreign government agency and to invest in related businesses only. Thus, to bid or participate in the bidding of the construction of the transmission system, classified as the construction business, is not in EGCOMP's core business although it may be related to the electricity generation and distribution businesses. For the project of High Voltage Transmission System in Cambodia, which EGCOMP is the developer of the project, EGCOMP will have to open the bid or choose the contractor for the construction work due to the fact that EGCOMP' s core business is not in the construction business. Regarding the comment that the investment by Electricity Generating Authority of Thailand may cause higher Public Debt, I would like to explain further that the aforementioned comment is consistent with the comments from investors and economists. Since the proportion of the Public Debt to Gross Domestic Products is currently rather high, the government may have other alternatives, such as allowing the opportunity for private sector to participate in the investment in order to decrease the high level of public debt. Yours sincerely, (Machima Kunjara Na Ayudhya) Senior Executive Vice President