REPORTS ON CD REDEMPTION

Sino-Thai Engineering & Construction Plc. (STECON) alluded to its issuance of unsecured convertible debentures (CDs) worth US$80 million, arranged on December 17, 1993. These CDs carry a coupon rate of 1.75% (net after tax) for payment once a year on December 17 of every year beginning from December 17, 1994. The repayment was set to be on December 17, 2003. These CDs were issued with a call option either partially or entirely, available from December 31, 1996, at the face value of the CDs, and also with put option available on December 17, 1996 at the price of 112.1637% of the face value. Now, holders of these CDs have forwarded their intention to redeem the CDs before maturity. STECON has already repaid the for the entire amount of US$80 million for the redemption, plus capital gain, at the price stated above. The repayment has been made on December 16, 1996. - Principle of redeemed CDs 80,000,000.00 US dollar - CDs' capital gain 9,169,663.79 US dollar Total 89,169,663.79 US dollar The repayment for the CDs and capital gain was made on December 16, 1996. However, a reserve for the payment of capital gain has previously been fully made since the third quarter of 1996, so this payment will have no accounting effects in the fourth quarter. Translated by The Nation