In response to what it believes were erroneous press reports, Beacon Hill associates

issued a press statement saying that it was "time to set the record straight."

"Beacon Hill Associates Inc. is developing and building a 60 megawatt, state-of-the-art,

turbine driven power plant in Phnom Penh. Beacon Hill's Power Purchase Agreement

is current and will remain in force and effect. The plant will be built and the city

will enjoy affordable, clean, reliable electric power... for the next 25 years,"

according to the statement.

The press release added: "Beacon Hill brought in a major US utility in the early

stages of the development process of the Phnom Penh plant.

Despite making pledges to the government and Eletricité du Cambodge, the utility

decided to desert the project a few months after coming to Cambodia. This does not

hurt the Beacon Hill project; it helps it because large utilities will compete to

participate in the project once it is more fully developed. Beacon Hill replaced

the utility with K&M Engineering and Consulting, a highly experienced Engineering

company that has developed, financed and built more than 200 megawatts of power in

nations with developing economies."