Executive Summary In summary, the preparations of the Berli Jucker Public Company Limited and subsidiary companies to achieve Y2K Compliance are progressing well. The Company is on track to achieve Y2K Compliance by mid 1999. The management is confident that this project will be completed as targeted and that the Berli Jucker and subsidiary companies will be able to move smoothly into the next millennium. For Berli Jucker and subsidiaries,the majority of the preparations are already complete. Outstanding is the need to develop a series of Business Continuity and Contingency Plans that lays out clearly what we will do if,despite our best efforts,our business ceases to function properly because of Y2K problems outside our control. Contingency planning workshops and presentations have been held with all trading entities and subsidiary companies. Finalization and testing of contingency plans will be complete by the end of August 1999. --------------------------------------------------------------------------------------- Berli Jucker --------------------------------------------------------------------------------------- Status --------------------------------------------------------------------------------------- MIS - Order Processing, Inventory Control Compliant Accounts Receivable, and Cost of Goods Testing completed 30/4/98 --------------------------------------------------------------------------------------- Payroll / HRM compliance testing Compliant Testing completed 31/3/98 --------------------------------------------------------------------------------------- Oracle OLAP package Already compliant --------------------------------------------------------------------------------------- Operating Systems and database products Already compliant --------------------------------------------------------------------------------------- ORACLE Financial Applications Already complaint --------------------------------------------------------------------------------------- Compliance testing for embedded devices Completed by end of April 1998 --------------------------------------------------------------------------------------- Check compliance programs of our trading partners On-going --------------------------------------------------------------------------------------- Upgrade of PC's and PC software Completed - March 1999 --------------------------------------------------------------------------------------- To satisfy certification testing requirements of several major customers the MIS will be further tested under the scrutiny of consultants from Price Waterhouse. This retest will be completed by the end of August 1999. Subsidiary Companies Cellox Paper Company Limited Cellox have confirmed that all computer hardware and software has been tested and is compliant. The majority of the manufacturing equipment contains no Programmable Logic Controllers (PLC) devices. All equipment containing PLC has been tested and is compliant. Thai Glass The Thai Glass plans to achieve Y2K compliance are well advanced. Examination and correction of all manufacturing equipment is complete. The upgrading of computer hardware and software was completed in March 1999. The upgrading of manufacturing equipment with the last non-compliant PLC device will be completed during the second quarter 1999. Rubia Industries An inventory of all manufacturing equipment has been produced. The analysis of these embedded systems is complete. Upgrades to software systems and associated computer hardware were completed by the end of March 1999. Compliance for all production equipment and the PABX system was completed by 30 June 1999. Thai-Scandic Steel Company Limited Y2K Compliance testing of all communications and computer systems is complete. Testing and upgrading of manufacturing equipment containing PLC devices is continuing with the equipment suppliers. Polipharm Company Limited Polipharm have no manufacturing equipment that contains PLC devices. Existing non- compliant Personal Computers and associated software are being replaced. Siam Snack Company Limited Compliance testing for all PC based systems has been completed. Non-compliant PCs are being upgraded. An inventory of all manufacturing equipment has been produced. Twelve of the twenty-one pieces of equipment contain no PLC devices. Siam Snack is working with the suppliers of the remaining equipment to ensure compliance. Thai Klinipro Company Limited. An inventory of all equipment has been completed and the business criticality assessed. The majority of the manufacturing equipment is simple and does not contain PLC devices. All of the specialized equipment is compliant. Thai Klinipro are upgrading their accounting and payroll packages to ensure compliance. Supply Chain and business partner review The major area of concern for Berli Jucker is the level of compliance of our major utility providers. Although the following organizations are all active in preparing for Y2K, there are concerns that they will have completed the required work on time. The following table indicates the current view of the Berli Jucker Group on the perceived level of Y2K compliance for these key institutions: ----------------------------------------------------------------------------------------- Institution Confidence level ----------------------------------------------------------------------------------------- EGAT High MEA (Metropolitan Electricity Authority) High X PEA (Provincial Electricity Authority) Low PTT (Petroleum Authority of Thailand) High Provincial Waterworks Authority High Metropolitan Waterworks Authority High X Port Authority of Thailand Low Department of Aviation High Thai Airways High Telephone Authority of Thailand Medium X Communications Authority of Thailand Low/Medium Aeronautical radio of Thailand High X Airports Authority of Thailand Low/medium X Ministry of Finance Low X Bank of Thailand Low X Ministry of Commerce Low X Bangkok Metropolitan Administration Low X Ministry of Transport & Communications Low Bangkok Bank and Thai Farmers Bank High Other local trading banks Medium Postal Service High X Customs and Taxation Low The organizations with a confidence level of low or medium are of particular concern due to the potential impact to the Group of a Y2K related failure. The Y2K status of these organizations will be closely monitored until March 2000.