PREPARATION TO RESOLVE THE YEAR2000 IMPACT

-Form57 (Y2K)- Preparation to resolve the Year2000 impact. Company Phata Leasing Public Company Limied. Type of Business "Leasing". Head Office located at 252/6 29th Fl. Muang Thai-Phatra Complex 1, Rachadaphisek Rd., HuayKwang, Bangkok 10320 Thailand. Telephone (662) 693-2288 Fax (662) 693-2299. Submitting the report conconcerning the preparation to resolve the Year2000 impact. The 1 st report submitted as of 28 August 1998 1. Preparation to resolve the Year2000 impact. The company has awarded Progress Software Company Limited (PSC) as its consultation and to develop implementation for the Y2K project. It is under responsible of Business Development and Technology Office, directed by Mrs. Bunjarat Suharitdamrong. The project has stared since June 1998 and targeted for completion by December 1998 2. The Year2000 impact to the business operation. 2.1 The effect to computer system and operation within the company. The impact would be on the date-sensitive systems. They are classified as computer hardware and software, in-house developed applications and non-IT systems. From the assessment, the results are as follows: - Hardware - PC Most of them are Y2K compliant. The rest can be manually set date to year 2000. - File Server All of them are Y2K compliant. - Others Yet to be identified - Software These include system software and application software packages. Some are Y2K compliant. Some need to be upgraded. - In-house Software Most of in-house developed applications are for reporting purposes which are impacted by Y2K. They will be superseded by being implemented application which is Y2K compliant. The Assessment Phase has completed and will be followed by the Detailed Planning, Implementation and Clean Management Phases. 2.2 The effect to general business operation. Although there are some potential impacts because of the effect of item 2.1, at low risk, we hope to fully resolve them by the end of 1998. 2.3 The effect from external. There is no date-sensitive on-line transactions form/to external interfaces found form the Assessment Phase.The effect form Y2K impacted customers is possible.However,since company has variety of customers business types and sizes, the effect would probably be minimal.At the present,it is found that customers, crediter and other trading partner are aware of the Year 2000 impact. 3. The Y2K Project implementation plan. 3.1 Methodology The company's IT and system development committee has awarded Progress Software Company Limited (PSC) as consultant and to develop implementation for the Y2K project. Responsible staff are Mrs. Bunjarat Suharitdamrong and Mr. Prateep Deesrisak of Business Development and Technology Office.In addition, working group includes delegatess form each department in order to develop and perform test cases. The main application software of the company are mostly third-party applications in which all of them have confirmed/assured with Y2K compliant. However, testing will be developed to assure that they work properly with critical test date in Phatra Leasing's enviroment. Being implemented Lease Management System will supersede most of the in-house appications.However, in-house developed appications which are not Y2K compliance will be modified to handle Year 2000. These will be done internally.They are critical appications to main business operation such as Office Stationary Inventory Management System. 3.2 Y2K Implementation Plan Phase I : Assessment June 98 - Aug 98 Assess the Year 2000 impact on the company. Identify core business areas and processes, inventory and analyze systems supporting the core business areas, and prioritize their conversion or replacement. Develop high level plan for the activities that will be required for the Year 2000 effort Phase II : Detailed Planning Aug 98 - Sep 98 Produce a detailed implementation plan that includes reviewing hardware, system software and application software to identify necessary actions, specific tasks and other needs affecting the entire IT environment. Create contingency plan. Phase III : Implementation Sep 98 - Dec 98 Test, verify, and validate converted or replaced platforms, applications, databases, and utilities. Test the performance, functionality, and integration of converted or replaced platforms, applications, databases, utilities, and interfaces in an operational environment. Phase IV : Clean Management Aug 98 - Dec 98 Review and enhance change management procedures and establish a long-term Year 2000 clean environment. Phase V : Project Management June 98 - Dec 98 Plan and manage the Year 2000 project as a single large information system development effort. Promulgate and enforce good management practices on the project levels. 3.3 Expenses It is estimated that Y2K related expenses would be approximately 1.5 MB-2.0MB. More accurate expenses could be projected after completion of phase 2. 4. Present Status Phase 1 of the implementation plan has completed as projected. Expenses incurred from this phase is 200,000 baht. 5. Management Conclusion The company has become awareness of Year 2000 impacts to the operation and mandated it as one of the major factors for acquiring new applications, software and hardware. Therefore, most of our systems are Y2K compliance. Some that need to be upgraded, are on plan and will be taken by the end of this year (1998). However,to assure that the problem would be handled effectively and professionally, on June 1998, the company has awarded progress Software Company Limited as our consultant to conduct and develop the implementation plan of Y2K project.It is projected to be fully completed by June 1999 We hereby audit statement and information indicated in this report and certify that all statement and information are true, accurate and not misleading to any persons. Nothings in all material aspects which should have been disclosed has been omitted there from which would or might cause any damage to the 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.Bunjarat Suharitdamrong to be our authorised signatory signing on every page of these documents. Should there be no signature of Mrs.Bunjarat Suharitdamrong affixed on any page there of,it shall not be considered that this information has been certified by us. Name Position Signature 1. Mr.Banthoon Lamsam Chairman of the Board ______________________ 2. Mr.Sawai Yakardkanong Director ______________________ 3. Mr.Visal Khongkha Director ______________________ 4. Mr.Vinai Punyarattabandhu Director ______________________ 5. Mr.Luxaman Bunnage Director ______________________ 6. Mr.Krirkchai Siribhakdi Managing Director ______________________ Authorised Representative Name Position Signature Mrs.Bunjarat Suharitdamrong Vice President --------------------- Business Development and Technology Office