SET Announcements

(Translation) Preparation for Year 2000 Report CH. Karnchang Public Company Limited was located at 587 Sutthisarn Rd, Dindaeng, Bangkok 10320,as a construction company, we had prepared ourselves to tackle year 2000 problem as the following Preparation Planning 1.Analysis and Impact evaluation We had conducted impact analysis of year 2000 since July 1997 where we thoroughly checked our computer hardware ,operating system,application software and data stored in our system as the following method 1. Prepare inventory list of all hardware, operating system, application program that being use in our company and subsidiaries. 2. Check back to our suppliers for year 2000 compilation of hardware, operating system, and application program together with recommend testing procedure to conduct our own verification. 3. Conduct year 2000 verification according to recommend testing procedure provided by our supplier. 4. Summarized all year 2000 problems found and report to our management. 5. Prepare list of computer hardware, operating system, application programs effected by year 2000 problems with recommended action plan and necessary budgeting. 6. Our management reviewed and approved action plan and budgeting. 2. Analyzed year 2000 impact to our business (a) After knowing those computer hardware and software not compiling to year 2000, we had further investigated how they will impact to our current business. We found that the results from Accounting system will be wrong. Although we record in Buddhist Era year ( 2541 instead of 1998 ) which seem to be unaffected by year 2000 but the current system date that pick up from Hardware and Operating System still wrong date thus converting to Buddhist Era date will also be a wrong date. (b) Result from the wrong date will lead to wrong accounting reports and taxes calculation which severely damage to our business. (c) External impact will be in the area of data transferring to banks and investors. 3. Actions plan Actions plan will be carried out by our Information Technology Department as the following (a) Newly purchase or upgrade existing computer hardware which are not compiled with year 2000. (b) Upgrade software operating system and application program to the version compile with year 2000. (c) Assign at least 5 computer specialists to deal with year 2000 case. (d) Allocate budget to solve year 2000 problem about Baht 1,500,000 which is approximately 0.075 percents of overall company expenses. According to announcement number Sor-Jor 34/2541 sub item (1) item 3 page 2 from The Securities Exchange of Committee, our solving budget will less than Baht 10 million which will be considered as non-significant impact. (e) We will also provide another 5 computers in case of malfunction following from actions taken to solve year 2000 problems. 4. Current status of year 2000 problem solving Currently we had finished all year 2000 testing according to the testing procedure provided by suppliers where we know all computers which do not pass year 2000 problem. We had also got approval for year 2000 problem solving. 5. Management Issue The Management of CH. Karnchang PCL realize and fully aware of year 2000 problem and endorse all actions plan together with approving of solving budget. Although , our budget is less than Baht 10 million which consider as non-significant matter according to The Securities and Exchange Committee announcement , we had strong believes that such problems will not impact to our business and will be solved before the end of year 1998. Statement of Verification We hereby examine all information providing in this report and confirm that they are all truth without any mislead items which will create confuse or damage to our shareholders or buyers. In order to prove that this is our document, we had appointed Mr.Plew Trivisvavet to sign on every pages of this document. Any document without his signature will not be treated as our company document. Name Position Signature 1. Mr. Thavorn Trivisvavet Chairman __________________ 2. Mr. Aswin Kongsiri Director __________________ 3. Mr. Don Pramudwinai Director __________________ 4. Mr. Plew Trivisvavet Director __________________ 5. Mr. Kamthorn Trivisvavet Director __________________ 6. Mrs.Saikasem Trivisvavet Director __________________ 7. Mr. Narong Sangsuriya Director __________________ Name Position Signature Authorized person Mr. Plew Trivisvavet Director __________________