EGCOMP's Lending to GEC

No. EGCO 110/388 Date : October 1, 2003 Attn : President of the Stock Exchange of Thailand Subject: EGCOMP's lending to GEC According to the approval in principle of the Board of Directors' Meeting of Electricity Generating Public Company Limited (EGCOMP) No. 9/2003 held on August 25, 2003, to lend EGCOMP's fund to Gulf Electric Public Company Limited (GEC) for the purpose of prepayment of GEC's bridge loan, EGCOMP would like to inform the Stock Exchange of Thailand (SET) that EGCOMP has lent Baht 434,006,501.16 to GEC since October 1, 2003. In accordance with the Notification of the SET, Re: Rules, Procedures and Disclosure of Connected Transactions of Listed Company, the aforementioned transaction is qualified as a connected transaction. Pursuant to the value of the transaction, Baht 434,006,501.16 , the volume of transaction is 2 % of book value of the net tangible asset of EGCOMP. Thus, EGCOMP would like to provide information as promulgated by the SET as follows: 1. Date of transaction and names of parties involved Utilization date: October 1, 2003 Maturity date: November 25, 2003 Names of parties involved : - EGCOMP - GEC 2. General explanation of the transaction EGCOMP lends Baht 434,006,501.16 to GEC to prepay the whole principal outstanding of GEC's bridge loan lending by Siam City Bank Public Company Limited (SCIB). 3. Total value of the transaction, the terms and conditions of transaction Total value of transaction (Facility Amount): Baht 434,006,501.16 Terms and conditions: - Lending period: October 1 - November 25, 2003 - Interest Rate: 4.5% per annum - Repayment: the facility shall be repaid in full together with the accrued interest by the borrower on the maturity date. 4. The name of connected person - EGCOMP - GEC (To be held by EGCOMP and Electric Power Development Co., Ltd. at the same proportion of 50% each) 5. The nature and extent of the interest of the connected persons in that transaction - GEC borrows Baht 434,006,501.16 from EGCOMP in order to prepay its bridge loan lending by SCIB. - As the interest rate of GEC's bridge loan (4.5% per annum) equals to the interest rate provided by EGCOMP, the transaction will not cause any impact to GEC. - Under the transaction, EGCOMP will receive the following benefits: - EGCOMP will capitalize on the interest rate. - EGCOMP will be able to receive the dividend payment from GEC earlier. As in the covenant of GEC's bridge loan lending by SCIB, the borrower will not be able to pay its dividends to its shareholders if the full amount of facility has not been repaid. Thus, this covenant will be terminated due to the prepayment of GEC's bridge loan to SCIB. Yours sincerely, Kraisi Karnasuta President