CLARIFICATION OF STECON'S FS Y'2002

Ref. No. : A/C ST. 030 / 2003 February 12, 2003 Subject : Clarification of STECON' s financial statement ended December 31, 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 yearly financial statement ended December 31,2002 which shows increase in net profit of 42.21% comparing to the previous year as the following reasons: 1. The company recorded share of profit from investments accounted for under equity method of Baht 156.79 million in this year. Where as in 2001, the company recorded share of profit (loss) from investments accounted for under equity method of Baht 37.27 million . 2. The company prepaid outstanding loan principal under the restructuring agreements totaling Baht 200 million in this year , the prepayment caused a Baht 40.67 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 accrued interest to be other income. Please kindly be informed. Yours sincerely, ___________________________ (Mr.Vallop Rungkijvorasathien ) Director ___________________________ (Mr.Woraphant Chontong ) Director