Clarification of STECON's financial statement Q1/04

Ref. No. : A/C ST. 019/ 2004 7 May 2004 Subject : Clarification of STECON' s financial statement ended 31 March 2004. 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 31 March 2004. Net profit decreased amount Baht 61.76 million from the same period of the previous year due to the following reasons: 1. For the first quarter of 2004, the company recorded share of profit from investments accounted for under equity method Baht 8.24 million. Where as in the same period of the previous year, the company recorded share of profit from investments accounted for under equity method Baht 21.07 million which is 39.11% decreased from the same period of previous year. 2. For the first quarter of 2003, 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. 3. The company interest expense's increased amount Baht 3.93 million from the same period of the previous year since the company issued the unsecured amortizing debenture. Please kindly be informed. Yours sincerely, ___________________________ (Mr. Vallop Rungkijvorasathien) Director ___________________________ (Mr. Woraphant Chontong) Director