[Translation] Ref. PDI.B.02.73/99 2 August 1999 To : President The Stock Exchange of Thailand Re : Report (No. 5) on readiness to face problems in the year 2000 Attached please find a report on the readiness to face problems in the year 2000 (No. 5) of Padaeng Industry Public Company Limited for the SET's 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 Facsimile : 261-1110 Report on the readiness to face problems for the year 2000, No. 5 (Information as at June 30, 1999) Preparations to face problems in the year 2000 1. Progress on the latest problem solving up 1.1 The company has followed plans and steps as referred in report No. 4. To date about 90% of total work have been completed. The remainders which have either not been completed or undue as follows: - Computer system used for controlling production at Tak plant is awaiting new version software upgrade from outsourcing in October 1999 which has been postponed from June (the previous schedule). To avoid any disruption on production target, the upgrading work will be concurrently carried out when the plant is to be shut down for annual maintenance. - Contingency plan for both Tak and Rayong plants are completed. - For last checking and solving of Y2K, the company has subcontracted an external auditor, EDS (Thailand) imited to carry it out over the period July-August 1999. 1.2 Expenses have remained unchanged from the amount referred in the previous report No. 4 -i.e. approx. Bt1.05m for Foxboro computer system which are used for controlling production at both Rayong and Tak plants and for the last checking by the external auditor . Solving problem at this step is dependent on Foxboro (Thailand) Company Limited for it is a sole distributor in Thailand. The expenses comprise about 200,000 baht for Rayong plant, about 600,000 baht for Tak plant and about 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 contingency period for following them step by step. Although some applications have been delayed but it can be expected to complete before the year 2000. The responsible team is accelerating modification works. And the management has confidence that . . . / 2 2 the Y2K problems will have no significant impact on the company and affiliated companies. Indeed, the management has also assigned each office to prepare a contingency plan when 1 January 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 be disclosed has been omitted therefrom which would or might cause any damage to holder(s) or purchaser(s) of the securities. 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. Pinit Vongmasa Chairman & Executive Chairman - Signature - Mrs. Anita Maria Chanrasmi Senior Vice President (Finance)