[Translation] Ref. PDI.B.02.50/99 4 May 1999 To : President The Stock Exchange of Thailand Re : Report (No. 4) on readiness to face problems in the year 2000 Attached herewith is a report on the readiness to face problems in the year 2000 (No. 4) of Padaeng Industry Public Company Limited for the SETs information. Yours truly, - Signature - (Mrs. Anita Maria Chanrasmi) Senior Vice President (Finance) Board Secretary Division Tel. 661 9900 Ext. 230, 232 Report on readiness to face problems in the year 2000 (Form 57 Y2K) Company : Padaeng Industry Public Company Limited (PDI) Nature of business : Mining and smelting of zinc concentrates Bangkok Office : 26th and 27th Floor, CTI Tower, 191/18-25 Ratchadaphisek Road, Klongtoey, District Bangkok 10110 Telephone : 661-9900 Telefax : 261-1110 Report on the readiness to face problems for the year 2000, No. 4 (Information as at March 31, 1999) Preparations to face problems in the year 2000 1. Progress on the latest problem solving 1.1 The company has followed plans and steps as referred in the previous report No. 3 (as of 31 December 1998). To date, about 85% of total work have been completed. The remainders which have not been completed or undue are as follows: - Computer system used for controlling production at Tak plant is awaiting new version software upgrade from outsourcing in June 1999. The upgrade work will be concurrently carried out when the plant is to be shut down for annual maintenance to avoid any impact on production target. - Contingency plan for Rayong plant is completed, and that for Tak plant has been over 50 % in progress. - A last checking and solving of Y2K which will be subcontracted to an external auditor is to be carried out during MayJune 1999. 1.2 Expenses have been adjusted up from the amount referred in the previous report to be about Bt1,050,000 (for Foxboro computer system which are used for controlling production at both Rayong and Tak plants and for which the external auditor will be subcontracted for last checkings.) Solving problem at this step is dependent on Foxboro (Thailand) Company Limited because it is a sole distributor in Thailand. The expenses comprise approx. Bt200,000 for Rayong plant, Bt600,000 for Tak plant and Bt250,000 for subcontracting the external auditor. 2. Analysis and explanations of management Although problems in the year 2000 have no significant impact on production and application, the management has much concern and has given full support. Action plans to solve this problem in the course of 2 years have been set up with a 6-month reserved time to follow them step by step. Although some applications have been delayed but scheduling is according to plan. The responsible team is accelerating modification works. And the management has confidence that The company and affiliated . . . / 2 2 companies will solve the Y2K problems within the time frame. Indeed, although the problem has significant impact on the company and that the year 2000 problem solving can expectedly be finished on time, the management has assigned each office to prepare a contingency plan when January 1, 2000 arrives. We have checked the particulars and information indicated in this report and certify that all particulars and information are true, accurate and not misleading to any persons and nothing in all material aspects which should have been disclosed has been omitted therefrom which would or might cause any damage to holder(s) or purchaser(s) of the stock. As evidence in this regard, all documents which are duly certified by us are being made in one set. We hereby authorize Mrs.Anita Maria Chanrasmi to be our authorised signatory signing on every page of these documents. Should there be no signature of Mrs.Anita Maria Chanrasmi affixed on any page thereof, it shall not be considered that this information has been certified by us. Authorised director Position Signature - Signature - Mr. Brett T. Lambert President - Signature - Mrs.Anita Maria Chanrasmi Senior Vice President (Finance)