Clarification on the value added tax (VAT)

No. EGCO 110/105 Date : February 23, 2004 Attn : President of the Stock Exchange of Thailand Subject: Clarification on the value added tax (VAT) in relation to gas deliveries The Electricity Generating Public Company Limited would like to inform the SET that EGCOMP notes that there have been recent reports by some news organizations regarding the reporting and payment of the value added tax (VAT) in relation to gas deliveries by the Electricity Generating Authority of Thailand (EGAT) to two of EGCOMP's wholly owned subsidiaries, Rayong Electricity Generating Company Limited (REGCO) and Khanom Electricity Generating Company Limited (KEGCO). EGCOMP currently is consulting and cooperating with the relevant government agencies regarding the billing practice between EGAT and KEGCO and REGCO. After initial review by the Company's advisors of the power purchase agreements of KEGCO and REGCO, payments in relation to VAT are the responsibility of EGAT in accordance with the terms of these agreements. EGCOMP's subsidiary companies, furthermore, have fully paid VAT pursuant to their obligations under the law. EGCOMP is working with all concerned parties to resolve the matter as quickly as possible and will further report the progress in this issue to SET accordingly. Yours sincerely, Chalermchai Ratnarak President Corporate Secretary Division Tel. 0 2998 5020 - 27