REPORT ON COMPANY CAPITAL INCREASE

Our Ref : ST /2000/0453 October 3, 2000 Subject : Report on Company Capital Increase Attention : The President The Stock Exchange of Thailand Attachment : 1) Form for Report on Capital Increase As the Central Bankruptcy Court has approved Company Rehabilitation Plan on September 4, 2000 and Stecon Administrator Company Limited acted as the Plan Administrator. According to the Rehabilitation Plan, the company shall increase capital from Baht 300,000,000 to Baht 850,000,000 by issuance of 55,000,000 common shares at the nominal par value of Baht 10/ share. The total capital increase will be Baht 550,000,000. The details are clarified in the attachment. Please be advised accordingly. Yours sincerely, ( Mr. Woraphant Chonthong ) Senior Vice President Finance and Account (F53-4) Form for Report on Capital Increase Sino-Thai Engineering and Construction Public Company Limited October 3, 2000 We, Sino-Thai Engineering and Construction Public Company Limited (the "Company") are pleased to report the order of the Central Bankruptcy Court with respect to the Red Case No. For. 3/2543 issued on September 4, 2000 between Sino-Thai Engineering and Construction Public Company Limited as the 1st Claimant, Hongkong & Shanghai Banking Corporation Limited as the 2nd Claimant and Sino-Thai Engineering and Construction Public Company Limited as the debtor concerning increase of capital and allotment of new shares as follows: 1. Capital Increase The Central Bankruptcy Court has approved the Rehabilitation Plan of the Company pursuant to Section 90/58 of the Bankruptcy Act B.E. 2483 (A.D. 1940) and Stecon Administrator Company Limited as the Plan Administrator. According to the Rehabilitation Plan, the Company shall increase its capital from Baht 300,000,000 to Baht 850,000,000 by issuance of 55,000,000 common shares at the nominal par value of Baht 10 per share. The total capital increase will be Baht 550,000,000. 2. Allotment of New Shares The Company shall allocate 55,000,000 common shares, at the nominal par value of Baht 10 each, totally Baht 550,000,000 in accordance with the rehabilitation Plan as follows: Allocate toNumber of New RatioSale priceDate of Remarks shares per sharePayment (Baht) Major5,000,0005.8820By Within 60 Days shareholders Novemberfrom the date the 3, 2000court approves the Rehabilitation Plan. Groups 1 and 350,000,00058.8270ByWithin 60 Days creditors underNovemberfrom the date the the3, 2000court approves Rehabilitationthe Rehabilitation PlanPlan. 3. Objectives and plans for utilizing proceeds received from the capital increase Objectives of Capital Increase 1. To reduce the Company's debt to the extent compatible with the Company's ability to create income and to repay its debt. 2. To allocate the repayment of debt to its creditors. Use of proceeds received from the capital increase 1. The number of 5,000,000 newly issued common shares shall be sold to its major shareholders at the subscription price of Baht 20, totaling Baht 100,000,000. This capital payment will be repaid to Group 1 and Group 3 creditors pro rated to the outstanding principle of loan of each such creditor. 2. For the number of 50,000,000 newly issued common shares, Group 1 and Group 3 creditors have agreed to convert their debts of Baht 3,500,000,000 to this 55,000,000 shares, at the conversion price of Baht 70 per share pro rated to the outstanding principle loan of each such creditor. 4. Benefits to the Company The capital increase/allotment of new shares shall reduce the Company's obligations and restructure the Company's debts to the extent that it can repay its debts owed to the creditors. This debt restructuring shall allow the Company to resume the position where it can operate its business to yield profit and prosper in the future. 5. Benefits to the Shareholders The Company shall be relieved from being insolvent and resume the position where it can operate its business to yield profit in the future. The Company certifies that the information provided above is correct and accurate in all respects. Signature Plan Administrator (Stecon Administrator Co., Ltd.) Mr. Chavarat Charnvirakul Groups 1 and 3 Creditors According to The Rehabilitation Plan dated on September 7,2000. Group 1 Financial Creditors 1. Bank of Ayudhya Public Company Limited. 2. Saim City Bank Public Company Limited. 3. Bank Thai Public Company Limited. 4. Krungthai Bank Public Company Limited. 5. Thai Military Bank Public Company Limited. 6. Finansa Fund Management Limited. 7. Classic Touch International Limited. 8. Bayerische landes Bank Singapore branch. 9. KBC Bank N.V. Singapore branch. 10. Standard Chartered Nakornthorn Bank Public Company Limited. 11. RHB Bank (L) Limited. 12. Keppel TatLee Bank. 13. Credit Lyonnais Bank. 14. Banco Bibao Vizcaya S.A. 15. Chiao Tung Bank Company Limited Singapore Branch. 16. Bumiputa Commerce Bank, Berhad. 17. Som Saeng Sakon Company Limited. 18. Asia Credit Public Company Limited. 19. Tisco Finance Public Company Limited. 20. Bangkok Commercial Asset Management Company Limited. 21. Radanasin Asset Management Company Limited. Group 3 Foreign Currency Swap Creditor 1. Classic Touch International Limited.