CLARIFIES CONCERNING PRESS RELEASE

Sino-Thai Engineering & Construction Plc. (STECON) clarified published reports which said the company's managing director released in an interview that STECON's major investments in 1997 would include a joint investment with CBI Co from the US to establish a new company called CBI Sino-Thai Co., Ltd. STECON corrected the reports saying that no registration of any new joint venture has been made, but the company is currently in a joint investment with CBI Co of the US under a registration on July 30, 1993 with the Ministry of Commerce as CBI ST Co., Ltd. This joint venture has a registered capital of Bt100 million, in which STECON takes a 35%-stake. This has already been reported to SET and investors, details as appeared in the annual report for 1995. The company also said nothing about the joint investment with CBI Co has been mentioned to in the interview.