EGCOMP's lending to GEC

No. EGCO 110/121 Date : March 1 , 2004 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. 11/2003 held on December 15, 2003, to lend EGCOMP's fund to Gulf Electric Public Company Limited (GEC) for the purpose of prepayment of GEC's term loan, EGCOMP would like to inform the Stock Exchange of Thailand (SET) that EGCOMP has lent Baht 450,000,000 to GEC since February 27, 2004., as follows: 1. Date of transaction and names of parties involved Utilization date: February 27, 2004 Maturity date: June 30, 2009 Names of parties involved : - EGCOMP - GEC 2. General explanation of the transaction EGCOMP lends Baht 450,000,000 to GEC to prepay the whole principal outstanding of GEC's term 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 450,000,000 Terms and conditions: - Lending period: February 27, 2004 - June 30, 2009 - Interest Rate: Period Interest Rate (% p.a.) February 27, 2004 - November 25, 2004 5.25 November 26, 2004 - November 25, 2005 5.75 November 26, 2005 - June 30, 2009 3-month Fixed Deposit Rate + 4 - Repayment: : On June 30 of each year 4. List of involved persons - EGCOMP - GEC (Held by EGCOMP and Electric Power Development Co.,Ltd., and Mitpower (Thailand) Co., Ltd. at 50%, 49% and 1% respectively) 5. The nature and extent of transaction - GEC borrows Baht 450,000,000 from EGCOMP in order to prepay its term loan lending by SCIB. - As the interest rate of GEC's bridge loan 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 Group will have less debt obligation. - EGCOMP will capitalize on the interest rate. 6. The Board of Directors's Recommendation The Board of Directors present their opinions that the lending transaction of EGCOMP to GEC was reasonable and of benefit to EGCOMP Yours sincerely, Chalermchai Ratnarak President Corporate Secretary Division Tel. 0 2998 5020 - 27