CLARIFICATION OF STECON'S FINANCIAL STATEMENT Q1/03

Ref. No. : A/C ST.058 / 2003 May 7, 2003 Subject : Clarification of STECON' s financial statement ended March 31, 2003. 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 31March 2003. Net profit increased 33.03% from the same period of the previous year due to the following reasons: 1. The company prepaid outstanding loan principal under the restructuring agreements totaling Baht 100 million in this quarter , the prepayment caused a Baht 8.27 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. 2. The company reversed the Baht 28.1 million provision for the loss of Joint venture to be other income,since the company has no obligations to the joint venture. Please kindly be informed. Yours sincerely, ___________________________ (Mr.Vallop Rungkijvorasathien ) Director ___________________________ (Mr.Woraphant Chontong ) Director