CLARIFICATION OF STECON'S FINANCIAL STATEMENT Q2/2002

Ref. No. : A/C ST. 208 / 2002 7 August 2002 Subject : Clarification of STECON' s financial statement ended 30 June 2002. To : President of the Stock Exchange of Thailand Dear Sirs, We, Sino-Thai Engineering & Construction Public Company Limited, would like to provide the clarification on our quarterly financial statement ended 30 June 2002 which shows increase in net profit by 30.18%for the three month period and 37.34% for the six month period comparing to the same period of the previous year. 1. The company had gross profit margin of 13.45% and 13.57% for the three month period and six month period comparing to 13.09% and 12.58% in the same period of the previous year due to the improve in profit margin on the current projects. 2. The company recorded share of profit from investments accounted for under equity method 12.30 and 40.63 million Baht for the three month period and six month period respectively. Where as in the same period of the previous year, the company recorded share of loss from investments accounted for under equity method 1.97 and 19.24 million Baht. 3. The company made early repayment of outstanding loan principal under the restructuring agreements totaling Baht 100 million, this repayment caused a Baht 24.8 million reduction in the amount of the interest to be paid on the loans in the future as recorded by the company. The company therefore reversed the above amount of future interest payable to income. Please kindly be informed. Yours sincerely, ___________________________ (Mr.Vallop Rungkijvorasathien ) Director ___________________________ (Mr.Woraphant Chontong ) Director