Change in Accounting Policy for an Investment in JV

No. EGCO 110/255 Date : May 4, 2007 Attn: President of the Stock Exchange of Thailand Subject: Change in Accounting Policy for an Investment in Joint Venture The Board of Directors of the Electricity Generating Public Company Limited or EGCOMP in the meeting no. 4/2007 dated April 23, 2007 approved in principle to change the accounting policy for reporting interests in jointly controlled entities in the consolidated financial statements from proportionate consolidation /line-by-line consolidation to equity method/one-line consolidation. Such approach conforms to the Thai Accounting Standard no. 46 Financial Reporting of Interests in Joint Ventures. The objective of changing the accounting policy is because EGCOMP views that the new accounting policy would better reflect the business characteristics of the companies within EGCOMP Group and would result in a better understanding among the users of the financial statements. It should be noted that interests in joint ventures are mostly the investment in power projects which are capital intensive and usually raise funds secured against their own assets with no recourse to their shareholders. In this regard, the Audit Committee was entrusted to consider the details of the implementation of the new accounting policy. Viewing that the new accounting policy conforms to the Thai Accounting Standard, the Audit Committee in the meeting no. 6/2007 on May 4, 2007 resolved to approve the change in reporting interests in Joint Venture in the consolidated financial statements from proportionate consolidation/line-by-line consolidation to equity method/one-line consolidation with effect on 1 January 2007. Yours sincerely, Visit Akaravinak President Corporate Secretary Division Tel. 0 2998 5020 - 24