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

Ref. No. : A/C ST. 313 /2000 November 14, 2000 To : President of the Stock Exchange of Thailand Subject : Clarification of STECON' s financial statement ended September 30, 2000 Dear Sirs, We, Sino-Thai Engineering & Construction Public Company Limited, would like to clarify our quarterly financial statement ended September 30, 2000 which showing net loss increase by 11.37% for the three- month period and 124.62% for the nine-month period compare to the same period of the pervious year as follows : 1. The company has cost of construction, which increase by 81.48% and 16.67% for the three- month period and the nine-month period respectively. The loss came from recognized contingent cost as of Accounting Standard of Work in Progress. 2. The company has recognized loss on impairment of investment, which increase by 28.47 million Baht and 129.40 million Bath for the three-month period and the nine-month period respectively. The loss came from recognition loss from others investments and amortization total good will from an associated company 3. The company has recognized loss on SWAP transaction of 155.97 million Baht for the nine- month period. This loss has been recognized by the Official Receivers under the rehabilitation process, Central Bankruptcy Court. 4. The company has interest expense increase by 28.30% for the nine-month period, which cause by the recognition of default interest and foreign currency loss on loan. However, the interest expense decreased 12.89% for the three-month period due to the company start applying the restructuring plan which reduce the interest rate and convert US$ loan to Thai Baht loan. Please kindly be informed. Yours sincerely, ______________________ ______________________ (Mr. Anutin Charnvirakul) (Mr. Vallop Rungkijvorasathien) Authorized Signatory