CLARIFICATION OF STECON'S F/S ENDED JUNE 30, 2000

Ref. No. : A/C ST.243/2000 August 15, 2000 To : President of the Stock Exchange of Thailand Subject : Clarification of Stecon' s financial statement ended June 30, 2000 Dear Sirs, We, Sino-Thai Engineering & Construction Public Company Limited, would like to clarify our quarterly financial statement ended June 30, 2000 which showing net loss increase by 1,899.64% for the three-month period and 460.98% for the six-month period compare to the same period of the pervious year as follows : 1. The company has recognized loss from investments in subsidiaries, associated companies and joint ventures which increase by 391.71% and 119.10% for the three- month period and the six-month period respectively. The loss came from increase in cost of operation and loss from impairment on investment. 2. The company has recognized loss on exchange rate which increase by 281.85% and 875.20% for the three-month period and the six-month period, respectively. 3. The company has recognized loss on SWAP transaction of Baht 155.97 million for the three-month period and the six-month period. This loss has been recognized by the Official Receivers under the rehabilitation process, Central Bankruptcy Court. 4. The company has interest expenses increase by 122.31% and 59.83% for the three- month period and the six-month period respectively. The increase partly came from loss in foreign exchange. Please kindly be informed. Yours sincerely, ______________________ ______________________ (Mr. Anutin Charnvirakul) (Mr. Vallop Rungkijvorasathien) Authorized Signatory