OPERATING RESULTS

No. EGCO 320/ 216 May 15, 2001 Attn :The President of the Stock Exchange of Thailand Subject : Financial statements and report concerning financial results of operation for the quarter March 31,2001 We submit herewith the financial statements and the consolidated financial statements of Electricity Generating Public Company Limited and subsidiaries for the quarter March 31,2001 and 2000 , of which the operating results for the first quarter of 2001 has been changed exceeding 20% from the corresponding period in 2000. 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 442.59 million baht for the first quarter ended March 31,2001 is 561.52 million baht or 55.92% lower than the net profit of 1,004.11 million baht in 2000 due to the followings : 1) The impact of currency exchange in 2001 and 2000 resulted in the company's exchange loss of 283.44 million baht and 34.91 million baht, respectively, which show a decrease of 248.53 million baht in 2001. Moreover, the impact of currency exchange was the main factor resulting in shares of loss from the company's associates, Amata-Egco Power Co.,Ltd., in the amount of 44 million baht, where as there was shares of profits of 7 million baht from the associates in 2000. 2) Total expenses were 2,075 million baht increased by 543 million baht or 35.44% mainly due to the followings; * Cost of sales of 929 million baht rose by 323 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 86 million baht and 23 million baht, respectively. 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 139 million baht and 70 million baht, respectively. * Administrative expenses totaling 247 million baht was up 115 million baht due to : * shares of administrative expenses from GULF and CONAL in the amount of 12 million baht and 23 million baht and amortization of Goodwill in the amount of 3 million baht and 9 million baht, respectively. * Acquisition of two subsidiaries, Thai LNG Power Corporation Limited(TLPC) and TLP Cogeneration Co.,Ltd. (TLP COGEN), of which shares of administrative expenses were in the amount of 1 million baht and 47 million baht respectively. * An increasing in the company's admin expenses mostly owning to consulting fee, advertising cost and others in the amount of 8 million baht, 8 million baht and 4 million baht, respectively. * Interest expenses of 868 million baht, which was up 98 million baht partly due to shares of interest expenses from GULF and CONAL amounted to 32 million baht and 55million baht, respectively whereas the interest expenses from REGCO and KEGCO increased by 11 million baht because of the higher exchange rate. 3) Total revenues were 2,898 million baht increased by 336 million baht mainly due to the followings; * Electricity revenues of 2,588 million baht rose by 240 million baht which were from REGCO in the amount of 6 million baht whereas the revenues from KEGCO decreased 194 million baht (1,565 M.kWh from REGCO and 1,465 M.kWh from KEGCO) which reflected from lower major maintenance cost as determined in the Power Purchase Agreement (PPA). The revenues also included shares of electricity revenues from GULF and CONAL in the amount of 196 million baht and 232 million baht, respectively. * Service income from ESCO was 22 million baht, decreasing by 5 million baht from the previous year resulted from lower operating and maintenance revenues. * Interest income and other revenues amounted to 283 million baht increased by 95 million baht mainly due to dividend from marketable securities of 64 million baht and others of 17 million baht. Besides, the shares of revenues from Conal in the amount of 14 million baht. Accordingly, the net profit for the first quarter ended March 31, 2001 excluding foreing exchange loss of 283.44 million baht was 726 million baht , which was 353 million baht or 32.72% lower than net profit excluding foreign exchange loss in the same period of 2000. Yours sincerely, Mr. Machima Kunjara Na Ayudhya Deputy Managing Director & Chief Finance Officer Accounting & Budget Division Tel : 998-5160