LARIFIES FOR Q2/1997 BUSINESS RESULT

Sino-Thai Engineering & Construction Plc (STECON) achieved net profit at 86.95% higher than the Q2/1996 period because: 1.Cost of construction fell after the company carried out much more petrochemical and machineries productions than construction works. 2.After loss in 1996 was deducted from 1997 6-month net profit, the company did not have to be responsible for corporate tax.