THE INVESTMENT IN NONG KHAE AND SAMUTPRAKARN POWER PLANTS

No. EGCO 350/365 Date : September 27, 2002 Attn : President of the Stock Exchange of Thailand Subject: The Investment in Nong Khae and Samutprakarn Power Plants Electricity Generating Public Company Limited (EGCOMP) would like to inform the Stock Exchange of Thailand that on September 27, 2002, Gulf Electric Public Company Limited (GEC), EGCOMP's joint venture in which EGCOMP holds 50% stake, signed Share Sale and Purchase Agreement with Tractebel S.A. in order to purchase 100% stake in both Nong Khae Cogeneration Co.,Ltd.(NKCC) and Samutprakarn Cogeneration Company Limited (SCC) in the amount of 94.3 Million USD. As of June 30, 2002, the total asset of the both companies was equal to 8,926 Million Baht. NKCC, located in SIL Industrial Land, Saraburi Province, has 125 MW installed capacity and 24 metric tonnes per hour steam capacity. The Commercial Operation Date was on October 12, 2000. SCC, located in Bangpoo Industrial Estate, Samutprakarn Province, has 125 MW installed capacity and 35 metric tonnes per hour steam capacity. The Commercial Operation Date was on August 23, 1999. Both NKCC and SCC Plants supply electricity to Electricity Generating Authority of Thailand under 21 year Power Purchase Agreement for a 90 MW capacity each and the rest is sold to industrial users in the industrial parks. As NKCC and SCC have been in operation and generated income, the share of revenues from those two projects will be first recognized in the 4th Quarter of 2002. Since Gulf Co-generation is 100% held by GEC and is located in Saraburi Province, the investment through GEC will enhance the synergy by helping to manage cost effectively, such as the utilization of human resources and spare parts, etc. among the power plants. Moreover, the maintenance schedule can be planned to enable the plants to dispatch the electricity to the customer all the time and save the standby charge paid to Provincial Electricity Authority of Thailand (PEA). Yours sincerely, Sitthiporn Ratanopas President & CEO