CLARIFIES DRAMATIC LOSS IN ITS Q3/1996 OPERATING RESU

Sino-Thai Engineering & Construction Plc (STECON) reported on its reviewed quarterly financial statements as follows: (In Thousands) Ending September 30 3rd Quarter For 9 Months 1996 1995 1996 1995 STECON/STECON and its subsidiaries Net profit (loss) (234,568) 91,271 (107,613) 280,570 EPS (Baht) (7.82) 3.04 (3.59) 9.35 STECON explained its Q3/1996 financial statement which showed a lower net profit from Q3/1995 by 357% in the quarter and 138.36% for the 9-month period. The details as in the company's letter 226/2539 as of November 14, 1996 are as follows: 1. Change in the realization of reserve for redeeming debentures at the higher than debenture values by 12.1637% from 5% of 80,000 debentures which was valued at Bt1.14 million in the quarter, and Bt3.43 for the 9- month period in 1995. And 100% of debenture values of 80,000 debentures which was worth Bt247.36 million for the quarter and Bt262.31 million for the 9-month period in 1996. 2. The company had recorded an expenses from reserve for debentures of Bt1.55 million for Q3/1995 and Bt4.65 million for the 9-month period of 1995. The amount was Bt46.26 million for Q3/1996 and Bt49.35 million for the 9-month period in 1996 to correspond to the reserve for redeeming debentures as in 1. 3. Construction cost rose compared to construction revenues(from 83.67% to 93.01% for the quarter and from 85.57% to 90.04% for the 9-month period)due to a rise in civil works rather than petrochemical and mechanical works compared to the same period of 1995. Normally, civil works will generated lower gross profit than petrochemical and mechanical works.