CLARIFIES ITS Q2/1996 FINANCIAL STATEMENT WITH DETAIL

STECON reported the summary of its reviewed quarterly financial statements as follows: (In Thousands) Ending June 30 2nd Quarter For 6 months 1996 1995 1996 1995 STECON/STECON & its subsidiaries Net profit 45,269 110,960 126,955 189,299 EPS (Baht) 1.51 3.70 4.23 6.31 Sino-Thai Engineering and Construction Plc (STECON) submitted its Q2/1996 financial statement which showed lower net profits by 59.20% and 32.93% of the 6-month term for the same period of last year as follows: 1. The company changed its reserve for debentures redemption at the price 12.1637% higher than the debentures value from the original 5% of the 80,000 debentures. The total amount was worth Bt1.14 million for the quarter and Bt2.29 million for 6-month period. In 1995, the redemption was 10% of 80,000 debentures and was worth Bt13.80 million in the quarter and Bt14.94 million for the 6-month term. 2. Cost of construction rose compared to revenues from construction (From 84.90% to 88.92% for the quarter and from 86.43% to 88.41% for the 6- month term). This was because of the company has worked on civil engineering projects more than petrochemical and machinery projects compared to the same period of last year. The civil engineering projects will usually generate less gross profits than petrochemical and machinery projects.