OPERATING RESULTS

No. EGCO 320/ 541 November 14 , 2000 Attn : The President of the Stock Exchange of Thailand Subject : Financial statements and report concerning financial results of operation for the third quarter ended September 30,2000 We submit herewith the financial statements and the consolidated financial statements of Electricity Generating Public Company Limited and subsidiaries for the third quarter ended September30,2000 and 1999 , of which the operating results for the third quarter of 2000 has been changed exceeding 20% from the corresponding period in 1999. In order to comply with the Regulation of the Stock Exchange of Thailand Re: Rules , Conditions ,and Procedure Governing Preparation and Filing of Financial Statements and Reports Concerning Financial Status and Results of Business Operations of Listed Companies (No.1) B.E. 2541 item 4(7), under which any listed company has to explain the reason why the operating results has been changed exceeding 20% from the same period of previous year, we would like to clarify that the company's net loss of Baht 173.05 MM. for the third quarter ended September 30,2000 is Baht 260.15 MM. or 60 % lower than net loss of Baht 433.19 MM. in 1999 due to the followings : 1) The impact of currency exchange in 2000 and 1999 resulted in the company's exchange loss of Baht 789 MM. and Baht 969 MM., respectively, which shows a decrease of Baht 180 MM. in 2000. 2) Sales of electricity of the Company increased by Baht 332 MM. due to 2.1 Shares of electricity revenues from joint ventures, Gulf Electric Public Co.,Ltd. and Conal Holding Corporation, which were recorded in this period in the amount of Baht 171 MM. and Baht 84 MM. ,respectively. 2.2 Higher electricity revenues from two subsidiaries, Rayong Electricity Generating Company Limited (REGCO) and Khanom Electricity Generating Company Limited (KEGCO), in the amount of Baht 57 MM and Baht 20 MM., respectively, which reflected from higher cost as determined in the Power Purchase Agreement (PPA) . Meanwhile, the cost of sales increased by Baht 269 MM. due to the cost of sales from joint ventures, which were recorded in this period, and increased cost of sales from REGCO and KEGCO in the amount of Baht 55 MM and Baht 92 MM.,respectively, as a result of higher major maintenance cost which was forecasted in the budget. 3) In accordance with the Interpretation number 4 of the Institute of the Certified Accountants and Auditors of Thailand ,dated 20 January 2000, the other assets in the amount of Baht 178.75 MM. of a subsidiary company ,Egcom Tara Company Limited, has been adjusted to administrative expenses such cost as incurred in 1999. This caused a decrease in administrative expenses in 2000 amounted to Baht 161 MM. 4) Interest expenses increased Baht 104 MM. due to an issuance of debenture in the total amount of Baht 5,000 MM. in the fourth-quarter of 1999 ,which bears interest rate 8% per annum or Bath 100 MM. per quarter. Accordingly, the net profit for the third quarter 2000 excluding foreign exchange loss of Baht 789 MM. is Baht 615 MM. ,which is Baht 79 MM. higher than net profit excluding foreign exchange loss in 1999. Yours sincerely, Mr. Machima Kunjara Na Ayudhya Deputy Managing Director & Chief Finance Officer Accounting & Budget Division Tel : 998-5160 Fax: 955-0956