DENY ON THE MATTER OF PENALTY UNDER CONSTRUCTION CONTRACT

Our Ref. ST/2002/0116 March 14, 2002 Subject: Deny on the matter of penalty under construction contract. Attention: The President The Stock Exchange of Thailand Whereas the Office of the Auditor General has sent a report to the Permanent Secretary of Ministry of Foreign Affairs to consider claiming penalty from STECON for wrongful extension of the contract. To protect STECON's reputation, we would like to clarify that the Ministry granted a 20 days Extension of Time in accordance with the terms of the Contract. Further STECON delivered and the Ministry of Foreign Affairs accepted the Work in July 1999 accordingly all rights and liabilities between both parties are over. The issue of STECON being penalized from such contract therefore has no ground. The Company provides this information for clarification to the Stock Exchange of Thailand and for dissemination to all market investors. Sincerely yours, Ayuporn Wongkomet Executive Office Manager