SET Announcements

TRANSLATION 1000 / 096 / 2005 May 3, 2005 Attention : President of The Stock Exchange of Thailand Subject : Additional Information for BCP's topic in the newspapers. Due to the fact that some newspapers published news concerning the Bangchak Petroleum Public Company Limited (BCP), it specified that the Company will do the capital increase by approximately USD 150 million in order to invest in the Product Quality Improvement Project for converting fuel oil into lighter refined oil products, in addition, PTT will purchase additional common shares from such capital increment, which causes PTT to increase their shareholding structure to 30% from 10% in BCP, as well as, the Company will borrow another USD 100 million from the commercial banks for investing in this project as well. The Company would like to give the additional information as follows : Presently, the Company has implemented the additional business restructuring plan by investing in the Product Quality Improvement Project to reduce the fuel oil production from 30% to less than 10% and increase the gasoline and diesel production instead, making the value addition to the product mix of the Company. The Company has employed the Foster Wheeler Company and Universal Oil Product Company (UOP), who are the leading companies in the Refinery's and Petrochemical plant's technologies, to execute the technical and economic feasibility study of the project. The study was already completed, and showed well high economic return approximately 25%. For the progress of the project, it is under the step of Basic Engineering Design by UOP and Foster Wheeler, which is expected to be completed and ready for bidding process for the construction contractor in the 3rd quarter of this year. The Company also prepares the financial plan for the project, which preliminary plans to raise fund from the proper combination of debt financing and capital increment in order to diminish the dilution effect as well as maintain the debt to equity ratio in the same level of the other energy companies. Concerning PTT Plc, they are one of the leading companies paying attention to invest in this project. The exact financial package will be finalized in the 3rd quarter of this year as well. The project is expected to complete at the end of 2007 and much create the economic values addition to the Company and its shareholders as the business and financial restructuring plan. However, during the construction period of the project, the Company will expand the business co-operation with Thaioil Plc. by increasing the long residue fuel oil volumes sending to Thaioil refinery for the value addition products. In addition, the Company will develop the other co-operation activities which create more value addition and cost reduction with other alliances in order to enhance the benefits for both parties. Please be informed accordingly. Yours sincerely, - Signed - (Patiparn Sukorndhaman) Senior Executive Vice President Corporate Planning and Investor Relation Office Tel : 0-2335-4583