NOTE 11 - EXTRAORDINARY ITEMS In 1998, Thai Glass Industries Public Company Limited suspended its Vietnam Glass Project as demand for new glass bottles in Vietnam was substantially below original projections due to a combination of lower than forecast beverage consumption and a higher than anticipated re-usage rate of second hand bottles. The company decided to make a provision amounting to Baht 200 million, in connection with the project, as approved by the Board of Directors Meeting held on August 13, 1998 . NOTE 12 - CONTINGENCIES The Company was contingently liable as guarantor of credit facilities for related parties at June 30, 1999 to the extent of Baht 520.8 million. NOTE 13 - COMMITMENTS At June 30, 1999 subsidiary companies had commitments for capital expenditures in the approximate amount of Baht 180.0 million. NOTE 14 - SEGMENT INFORMATION For financial accounting purposes the Group divides its core business into two areas: Packaging & Consumer products and Technical products & Engineering. Non-core operations are grouped as Others. The results of operations for the six-month periods ended June 30, 1999 and 1998 are summarized below: Baht (Million) Packaging Technical & Consumer products 1999 1998 products & Engineering Others Total Total Sales 1999 3,690.5 1,772.6 12.4 5,475.5 1998 3,486.9 1,944.8 15.4 5,447.1 Operating profit (loss) before interest excluding proportion attributable to minority interests 1999 639.5 50.9 (2.4) 688.0 1998 471.0 74.2 (10.1) 535.1 Minority interests proportion in operating profit before tax 5.9 97.3 Operating profit before interest 693.9 632.4 General corporate expenses (106.9) (73.5) Loss on disposal of investments (3.6) - Other financing income 15.2 82.6 Net interest (expense)income (84.7) (161.5) Loss on foreign exchange (0.7) (159.2) Loss on diminution in value of assets (17.0) Net income before tax 513.2 303.8 Income tax (154.0) (44.8) Net income before minority interests and extraordinary items 359.2 259.0 Minority interests 0.3 (75.7) Net income after minority interests 359.5 183.3 Extraordinary items - (92.6) Net income 359.5 90.7 As at June 30, 1999 and 1998 property, plant and equipment, net of accumulated depreciation and amortization, were allocated as follows: Baht (Million) Packaging Technical & Consumer products 1999 1998 products & Engineering Others Total Total Property, plant and equipment: 1999 5,819.0 493.2 51.8 6,364.0 - 1998 5,894.5 519.1 61.3 - 6,474.9 General assets used 772.3 804.5 Total Property, Plant and Equipment - Net 7,136.3 7,279.4 NOTE 15 - YEAR 2000 COMPUTER ISSUES (BEING UNAUDITED AND UNREVIEWED AND NOT FORMING PART OF ACCOUNTANTS' REVIEW REPORT) The Year 2000 problem arises because many computerized systems use two digits rather than four to identify the year. Date-sensitive systems may recognize the year 2000 as some other dates, resulting in errors when information using year 2000 dates is processed. Entities may experience the effects of the Year 2000 problem before, on, or after January 1, 2000, and the effects on operations and financial reporting, if not addressed and repaired properly and timely, may range from minor errors to significant systems failure which could affect an entity's ability to conduct normal business operations. In addition, it is not possible to be certain that all aspects of the Year 2000 problem affecting the entity, including those related to the efforts of customers, suppliers, or other third parties, will be fully resolved. The Company has commenced its plan to address the Year 2000 compliance problem and the majority of the preparations are already complete. Finalization and testing of contingency plans will be complete by the end of August 1999. Although the Company has the problem remedied by the time Year 2000 occurs, the operations of the Company would still remain at risk from other entities with which the Company undertakes business if they are unable to remedy their own problems in time.