CLARIFICATION OF NEWS

No. EGCO 350/529 Date : December 23, 2002 Attn : President of the Stock Exchange of Thailand Subject: Clarification of the news Reference: The Report to the Stock Exchange of Thailand No. EGCO 359/528 on The Vision of EGCOMP's New President dated December 20, 2002 Reference is made to the news on Thai Post dated December 23, 2002 stated the following: 1. Electricity Generating Public Company Limited (EGCOMP) will expand its investment in more local power business by purchasing shares from existing foreign investors, who invest in local Independent Power Producer Projects (IPPs) or Small Power Producers (SPPs) and may divest their investments. 2. EGCOMP is interesting in purchasing 40% stake in Bor Nok Power Plant from Edison Mission Energy. 3. EGCOMP will bring EGCOMTARA Company Limited (EGCOMTARA) to list in the Stock Exchange of Thailand (SET) and prepare to sale its 20% stake in Eastern Water Resources Development and Management Public Company Limited (East Water). EGCOMP would like to clarify the news as follows: 1. Purchasing the shares from the existing foreign investors, who invest in the power business and may divest their investments in order to send their capital back to their countries, will be one of EGCOMP's methodologies to pursue its qualitative business growth. As stated in the Reference, EGCOMP will invest in its core business especially in IPPs with good return, which immediately generate their incomes or will generate them in the near future. 2. EGCOMP would like to deny the news that EGCOMP, now, is interested in purchasing 40% stake in Bor Nok Power Plant from Edison Mission Energy. 3. According to EGCOMP's strategy in divesting its non-core businesses, EGCOMP will consider to divest or decrease its stake in EGCOMTARA although EGCOMTARA has been able to generate its income. Moreover, EGCOMP has to prepare its methodologies to sale its stake in East Water. However, to sale the stakes of EGCOMTARA and East Water, EGCOMP will significantly concern with real value of those businesses. Thus, to bring EGCOMTARA to list in the SET or to look for new strategic partner will be EGCOMP's channels to divest or decrease its non-core investments together with to realize the real value of those businesses. Yours sincerely, Mrs. Chutiporn Prayong Senior Vice President-Finance Acting for President