REPORTS & CLARIFIES AUDITED ANNUAL FINANCIAL STATEMEN

Sino-Thai Engineering & Construction Plc. (STECON) reported a summary of its audited annual financial statements as follows: (In Thousand Baht) For Year Ended December 31 1996 1995 STECON/STECON and subsidiaries Net profit (loss) (159,507) 369,145 EPS (Baht) (5.32) 12.31 According to the annual financial statements submitted, STECON's net profit in 1996 was 143.21% under that in 1995. The company gave reasons for the downward result as follows: 1. In 1996, the company has posted an amount of 262.31 million as surplus for 12.1367% capital gain for redemption of 80,000 debenture units. This was a ratio of 100% of the capital gain, changing from an amount of Bt4.57 million culculated from 5% of the capital gain. (The payment for debenture redempion, plus the capital gain mentioned, has already been made, details as in company's notification no. Bor Chor. Zor Tor. 246/2539 dated December 18, 1996). 2. In 1996, STECON has posted the entire deferred expense of Bt49.35 million as debenture issuance expense. The figure was Bt6.20 million in 1995. This change was to be in line with the transaction posted for surplus for debenture redemption stated in 1. 3. Construction cost per construction revenues rose from 85.41% in 1995 to 91.82% in 1996. This was a result of higher proportion of construction works than petrochemical and mechanical works, compared to 1995 because margin for construction works was lower than that of petrochemical and mechanical works.