04 September 1998

THE REPORT ABOUT THE PREPARATION FOR Y2K

The report about the preparation to get ready to serve The computer problem for the year 2000 The Union Mosaic Industry Public Co., Ltd. doing main business by producing construction material for which the head office is located at 65 Chamnan Phenjati Business Center 29th fl., Rama IX Rd, Huaykwang, Bangkok 10310 Tel. 2487007 , 2487040 Fax 2487005-6 would hereby reporting about the preparation to get ready to serve the computer problem for the year 2000 (1st report) The preparation to get ready to serve the computer problem for the year 2000 Analyzing and estimating the effect The administrators of the company have realized the problems which will happen in the year 2000 whether it would have any effect. In order to prevent the damages which may occur with our business, the company has been preparing and appointing the committees to get ready to solve the problem in the year 2000. For which the manager of the information technology center would take responsibility for the management our committees from other departments together with to set the way of analyzing the problems by separating the group which expecting that it would have problems in 2 groups are:- 1. Group of control equipment and machinery in production The committees have appointed the engineer department to investigate the machinery inside the plant no.4 which has stopped the production. The result comes out that there is not any machine which has the effect from the problem of the year 2000. The other machines of other plants could not make investigation due to the production is running 24 hours for which it could be investigated during the annual maintenance period by end of the year. The committees have analyzed the machines of other plants comparing to the machines of plant no.4. All have the similar control equipment which could be concluded that the other machines of other plants would not get the effect from the problem of the year 2000. However, we will make sure to investigate for all machines by the end of the year 1998. 2. The effect for the computer and program In the part of server machine, at present the company is using mini- computer "NIXDORF" type Quattro/45 which installed the finished program "COMET TOP II" which recording the function of account data system. The committees have been informed by the agent of NIXDORF that their computer system would of course get the effect from Y2K. The above problem the company has already planed to serve the problem by purchasing 2 sets of new mini-computer "Sun" and also installing finished program MFG/PRO and the management database "Progress" which covering the production , service and account systems which has been guaranteed by the agent and the maker that it would not get the effect from the problem of the year 2000 surely. The purchase and installation of the mentioned new computers and program have been made since end of last year (1997). The company plans to use the new systems to replace all the old systems and to give up the old systems by the end of September 1998. In the part of microcomputer, we have planed to replace the old type with the new type which has no problem from the year 2000 and has already been replaced since the middle of last year (1997) up to present time which nearly finished all. The company remains some computers which have problem and need to be replaced by the new, the value about 600,000 baht. The investigation and testing has been done by the information technology center's company staffs by using the testing program of Y2K and testing through the year 2000. The effect of problem in the year 2000 for the running business The committees have prepared and got ready to solve the problem for the year 2000 by concluding the factors which have the effect against the running business of the company in 2 case:- 1. The internal factor which will have the effect against the company From the mentioned plans to prepare the readiness to serve the problem of the year 2000 by purchasing and improving computer system of the company since the year 1997 up to present time, we could conclude the estimated result that the company would not get the effect against the running business of the company in the part of computer system and the internal management system from the problem of the year 2000. In the part of associated companies, it's due to the Union Mosaic Industry Public Co., Ltd. And the related people did not hold the shares together more than 50% of the total shares which has the right to vote of those companies. Therefore, the committees would not report the effect to those companies which the company is holding the shares. 2. The external factor which will have the effect against the company The committees have planed the effect from the external factor in 3 parts which are:- 1) There is problem about the connection data among the suppliers of raw materials or the major clients because the company's data has not been connected with the external companies. 2) In the part of the effect, caused by the suppliers of raw-material who may get the effect form the problem of the year 2000, the committees have set a plan to investigate and estimate the effect from the suppliers by gathering the data during this time and expecting to be able to report the result by the next report. 3) In the part of the effect, caused by the clients or the major debtors who may get the loss from the problem of the year 2000, the committee have set a plan to investigate and estimate the effect from the clients and the major debtors by gathering the information during this time and expecting to be able to report the result by the next report. Analyzing lesson and explanation of the administration In the preparation for the readiness to serve the problem in the year 2000, the administrators of the union mosaic industry public co., ltd. realized the above problem which would have the effect against the running business of the company for the management and internal organization including the service render to the external people. If the company has faced with above problem, the administration have prepared the readiness since the year 1997 by appointing committees to get ready to serve the problem of the year 2000 to study and arrange the project to provide the new computer system which will have the effect from the year 2000 to replace the old system which has been investigated that it would get the effect from the problem of the year 2000. According to the mentioned project plan starting from June 1997 and be completed in August 1998, the mentioned system has been covering the function in section of production system, service system, accounting system, and database system of the company which expecting to be completed in Septempber 1998 exceptional from the computer system. In the part of machines in the production, the engineer department has been appointed to make a plan for testing the problem of the year 2000 expecting to get the result within the end of the year 1998 due to the investigation needs to stop the main machines for which the administration will follow-up to investigate and solve problem to be completed according to the plan before the year 2000 surely. In the part of the effect against the running business, the administration has evaluated the level of loss or the risk in the low level or without countable value of the expense cost which may occur because the company has been preparing to get ready for the mentioned problem at all times. We have already checked the message and the data in this report and guaranteed that those message and data are complete and true, it would not cause others misunderstanding or lacking of important message which should be informed and may cause the share holders or people who purchasing securities may loss. In this case, in order to be an evidence that all the documents we verified the correct document in one set, we have appointed Mr.Charun Amorntirakul to be a person signed attached on every page also. If any document has no sign of Mr.Charun Amornitrakul attached therein we considered those data were not the correct data we verified. NAME POSITION SIGNATURE 1. Field marshal Thanom Chairman of the executive Kittikachorn board of director 2. Miss Paweena Laowiwatwong President 3. Mrs. Nongnart Phenjati Director 4. Mr.Sivaporn Dardaraananda Director 5. Dr. Chaiyut Pilun-owad Director 6. Capt. Seranee Phenjati Director 7. Mr. Methawee Laowiwatwong Director 8. Mrs. Nipanan Tantranont Director 9. Mr. Natchana Phenjati Director NAME POSITION SIGNATURE The proxy Mr. Charun Amorntirakul Finance and Account manager