CLARIFICATION REGARDING THE BANG PRAKONG CANAL PROJECT

Our Ref. ST/2002/0406 September 10, 2002 Subject: Clarification regarding the construction of Bang Prakong Canal project. Attention: President The Stock Exchange of Thailand On September 6, 2002, an article regarding the construction of the Bang Prakong Canal appeared in the Manager Weekly Newspaper. The contents of this article deviated appreciably from the actual facts of the situation and as the Credibility and Reputation of Sino-Thai Engineering and Construction Public Company Limited (STECON) was slandered in the article, we wish to set the record straight. Although our letter to you dated August 16, 2002, set out the true facts, they are reiterated for clarity. 1) STECON has met all of the conditions of contract and are therefore not subject to any liquidated damages. 2) STECON bid for and was awarded this contract through a process of competitive, open bidding as defined by industry standards. This project was no different than every other project that STECON has been awarded from both, the public and the private sector. STECON always adheres to a policy of Corporate Good Governance as its Code of Conduct. 3) In order to avoid additional, unnecessary complications in the work, the Royal Irrigation Department requested STECON, as the on-site contractor, to propose pricing for additional work. STECON proposed the use of the same unit rates as were used in the original, successful low bid. In the past 40 years, STECON has successfully completed more than 100, high quality projects with on time delivery, for clients in both the public and the private sector. To protect the reputation earned by this experience, we confirm, that we have and will continue to, operate our business with credibility and transparency and all accusations against STECON which were cited or implied, in this article are untrue. The Company provides this information for clarification, to the Stock Exchange of Thailand and for dissemination to all market investors. Sincerely yours, Ayuporn Wongkomet Assistant Vice President - Executive Office Investor Relation IR@stecon.co.th