CLARIFICATION ON THE SELLING OF STC

Our Ref : ST/2001/0148 March 28, 2001 Subject : Clarification on the selling of Sino-Thai Construction Service Co.,Ltd. Attention : The President The Stock Exchange of Thailand Whereas Sino-Thai Engineering & Construction Public Company Limited "STECON" has sold Company's subsidiary, Sino-Thai Construction Service Co.,Ltd. (STC), supplying construction equipment and being dealer for heavy machines, with registered capital Baht 30,000,000 Total shares 300,000 at Baht 100 per share which STECON hold 299,993 shares (99.99% of STC shares). Currently, STC stop operating business, having total deficit amounted Baht 245,139,259. The STC are sold at Baht 1 per share for 299,993 shares (100% of STECON shareholding in STC) at the total cost of Baht 299,993 (Baht Two hundred Ninety Nine thousand and Nine hundred Ninety Three Only) on March 27, 2001 to CTMC Company limited which does not have any related business with the Company in accordance with the SET regulation. The purpose of the selling is to utilize the money as working capital of the Company. Please be advised and disclose to investors and public. Yours sincerely ( Mr. Teeraphong Wichiranon ) Vice President Business Development Department