OPERATING RESULTS

No. EGCO 320/ 107 March 1 , 2001 Attn : The President of the Stock Exchange of Thailand Subject : Financial statements and report concerning financial results of operation for the year ended December 31,2000 We submit herewith the financial statements and the consolidated financial statements of Electricity Generating Public Company Limited and subsidiaries for the year ended December 31,2000 and 1999 , of which the operating results for the year 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 profit of 1,216.74 million baht for the year ended December 31,2000 is 1,431.21 million baht or 54.04% lower than net profit of 2,647.95 million baht in 1999 due to the followings : 1) The impact of currency exchange in 2000 and 1999 resulted in the company's exchange loss of 1,478 million baht and 241 million baht, respectively, which show a decrease of 1,237 million baht in 2000. Moreover, the impact of currency exchange was the main factor resulting in shares of loss from the company's associates in the amount of 77 million baht, where as there was shares of profits of 8 million baht from the associates in 1999. 2) Total expenses were 7,779 million baht increased by 1,207 million baht or 18% mainly due to the followings; * Cost of sales of 3,312 million baht rose by 625 million baht mostly owing to the increase of major maintenance costs from two major subsidiaries, Rayong Electricity Generating Co.,Ltd. (REGCO) and Khanom Electricity Generating Co.,Ltd. (KEGCO), in the amount of 365 million baht. Furthermore, the share of cost of sales form two joint ventures, Gulf Electricity Public Co.,Ltd (GULF) and Conal Holding Corporation (CONAL), were in the amount of 254 million baht and 17 million baht, respectively. * Administrative expenses totaling 1,092 million baht was up 205 million baht because of the cost of project development of Nam Theun 2 Hydro project and Yala Project in the amount of 377 million baht and 9 million baht, respectively, and shares of administrative expenses from GULF and CONAL in the amount of 11 million baht and 134 million baht. Whereas in 1999, there was pre-operating expenses of Egcom Tara Co.,Ltd.,a subsidiary company, of 179 million baht, the company's financing expense and REGCO's refinancing expense amounting to 70 million baht and the cost of project development from two subsidiaries, EGCO Mining Co., Ltd. and , EGCO Enginering and Service Co., Ltd. (ESCO) totaling 162 million baht. * Interest expenses of 3,325 million baht, which was up 341 million baht partly due to the interest paid for 5,000 million baht debenture in the amount of 321 million baht, and shares of interest expenses from GULF and CONAL amounted to 76 million baht and 88 million baht, respectively whereas the interest expnese from REGCO and KEGCO decreased by 144 million baht. 3) Total revenue were 10,551 million baht increased by 1,099 million baht mainly due to the followings; * Higher electricity revenues from two major subsidiaries , REGCO and KEGCO, in the amount of 79 million baht and 365 million baht ( 7,847 M.kWh from REGCO and 5,582 M.kWh from KEGCO), respectively, which reflected from higher major maintenance cost as determined in the Power Purchase Agreement (PPA) and shares of electricity revenues from GULF and CONAL ,which were recorded in this period in the amount of 357 million baht and 342 million baht, respectively. * Service income from ESCO was 107 million baht ,increaseing by 4 million baht from the previous year resulted from operating and maintenance revenue. * Interest income and other revenues amounted to 863 million baht decreased by 47 million baht mainly due to dividened from marketable securities of 86 million baht decreased by 106 million baht whereas interested income amounted of 777 million baht. increased by 59 million baht. Accordingly, the net profit for the year 2000 excluding foreing exchange loss of 1,478 million baht was 2,695 million baht , which was 194 million baht or 6.72% lower 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