CLARIFICATION OF STECON'S F/S ENDED MARCH 31, 2001

Ref. No. : A/C ST. 116 / 2001 15 May 2001 Subject : Clarification of STECON' s financial statement ended 31 March 2001. 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 2001. Net profit increased 121.57% from the same period of the previous year due to the following reasons : 1. For the 1st quarter of 2001, the company had gross profit margin of 12.03% comparing to 1.36% in the same period of the previous year due to better profit margin on the current projects. 2. The company did not have loss on impairment of investment comparing to 111.05 million Baht loss in the same period of the previous year. 3. As a result of the debt restructuring process, the company recorded interest expense at 98.95% lower than the same period of the previous year. Please kindly be informed. Yours sincerely, ___________________________ (Mr. Vallop Rungkijvorasathien) Director ___________________________ (Mr. Woraphant Chontong) Director