CLARIFICATION OF STECON'S F/S ENDED JUNE 30, 2001

Ref. No. : A/C ST. 184 / 2001 8 August 2001 Subject : Clarification of STECON' s financial statement ended 30 June 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 of our quarterly financial statement ended June 30, 2001 which showing net profit increased by 112.65% for the three month period and 115.50% for the six month period compare to the same period of the previous year due to the following reasons : 1. The company had gross profit margin of 13.09% and 12.58% for the three month period and the six month period comparing to the loss of (1.79%) and (0.32%) 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 currency swap contracts comparing to 155.97 million Baht loss in the six-month period of the previous year. 3. As a result of the debt restructuring process, 3.1 The company recorded interest expense at 1.17 and 2.42 million Baht for the three month period and six month period comparing to 202.27 and 321.62 million Baht in the same period of the previous year. 3.2 The company recorded gain(loss) on exchange at 0.01 and (0.4) million Baht for the three month period and six month period comparing to (122.67) and (146.64) million Baht in the same period of the previous year. Please kindly be informed. Yours sincerely, ___________________________ (Mr. Vallop Rungkijvorasathien) Director ___________________________ (Mr. Woraphant Chontong) Director