Executive Summary The preparations of the Berli Jucker Public Company Limited and subsidiary companies to achieve Y2K Compliance are complete. Monitoring of our trading partners and public utilities is continuing. Staff training in the use of the Y2K Business Continuity and Contingency Plans is continuing. Berli Jucker Public Company Limited -------------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------------- 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 Industries Public Company Limited The Thai Glass plans to achieve Y2K compliance are complete. 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 was completed in October 1999. Rubia Industries Limited 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 complete. Siam Snack Company Limited Compliance testing for all PC based systems has been completed. Non-compliant PCs have been upgraded. An inventory of all manufacturing equipment has been produced. Twelve of the twenty-one pieces of equipment contain no PLC devices. The remaining equipment has been upgraded 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 has upgraded 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 we believe 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) Medium ---------------------------------------------------------------------------------- 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 Medium ---------------------------------------------------------------------------------- Aeronautical radio of Thailand High ---------------------------------------------------------------------------------- X Airports Authority of Thailand 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. Determining accurately the Y2K Compliance status of many of these organizations has been difficult. Consequently, they have been rated as low or medium risk. The Y2K status of these organizations together with our trading partners will be closely monitored until March 2000.