CENTRAL PATTANA PUBLIC COMPANY LIMITED Report on the Year 2000 Preparation Plan Central Pattna Public Company Limited and Subsidiaries engage in management of shopping centers byproviding retail space for rent and related services in those shopping centers. Its head office is located at 1693 Phaholyothin Road, Lardyao, Chatuchak, Bangkok , Telephone 937-1555 , Fax. 937-1580. The Company Would Like to submit the first report on its preparation plan for the year 2000 crisis up to 28 August 1998. as follows. The Company realize about the millennium problems and has prepared itself during the past few months. Generally, its computer systems used internally within the Company and subsidiaries are : 1) Personal Computer 2) AS/400 Computer The database are sharing between Property Management Department and Finance & Accounting Department,under the supervision of Computer Department. The following measures are being implemented : I. Analysis and Evaluation of the Effects of the Millennium Problems The Company setup a committee to analyze and evaluate the effects of the year 2000 by 1. Set up a project team which comprised of the representatives from - Computer Department 1 person (team leader) - Property Management Department 1 person - Finance & Accounting Department 1 person 2. Summarise the details and prepare the report on : - Applications which are risky to the year 2000 problems - Electronic equipments which are risky to the year 2000 problems - All software systems - All hardware systems In addition, name of the vendors and contact persons in case of emergency will be listed. 3. Follow-up tasks are responsible by - Computer Department ; for software, hardware, network, database and in-house developed applications. - Property Management Department ; for the property operational systems in shopping centers. - Finance & Accounting Department ; for the accounting system, financial reporting system and test-run of software and database management systems. II. The Effects of the Year 2000 Problem to the Business 1. Effects on Computer System and Internal Management 1.1Effects on Software System 1.1.1 Pesonal Computer Software - In-house developed applications have already been designed for century compliance. - Software Package : certain data are kept on Lotus 123 which do not comply with the year 2000. However, volume of that data is very limited and only for personally use which can be moved to other application. 1.1.2 Software on AS/400 - In-house developed applications have already been designed for century compliance and the Company is in the process of program capabilities checking. - Package applications : J D Edwards. It was recently awarded year 2000 certification by Information Technology Association of America(ITAA), a trade association representing aborard spectrum of It industry leaders. All date-related application of J D Edwards have been thoroughty tested and can be ensured as having fully century capabilities. In addition,plan to run a test of the application on hardware with system date of year 2000 to confirm its compliance. 1.2 Effects on Hardware System 1.2.1 Personal Computer Hardware - about 81% of the Company's PC have to be replaced with new one that has century compliance capabilities. 1.2.2 AS/400 Hardware - the original OS of AS/400 system can not bear the year 2000 problems. However, the new OS which comply with year 2000 has already been replaced. 1.3 Effects on database and Reporting Systems 1.3.1 The database system has already been designed for century compliance. 1.3.2 Reporting system - the existing personal computers are not capable to install the modern application for linking the data from database in AS/400. However, this problem can be solved by the new PC. 1.4 Effects on Network System All network systems have century compliance capabilities. 2. Effects on Business Operation The Company has no manufacturing system. Only one service system that is providing services to customer in our food center. The Company has 90% completed in testing of its century compliance. 3. Effects from Outside Factors The computer system is internally use within the Company and subsidiaries without linkage with outsider. Hence, no any year 2000 problems occur from outside factors. Consequently, the main issue regarding the millennium problems for the Company is that a large number of its personal computer hardware currently cannot accomodate the year 2000 and has to be replaced. However, the effect from this issue is insignificant. The Company esitmate the budget for the year 2000 solution approximately Baht 6 million which is not over 5% of the shareholders'equity of the consolidated balance sheet a at 31 December 1997. III. Action Plan for Problems Resolving 1. Plan for Software Problems Resolving 1.1 Personal Computer Software - In-house developed application :- the applications of food center business NO. Detail of tasks Completion Date 1. Testing programs through all loop 10-31 May 98 with real work situation and prepare daily report 2. Summarise the year 2000 problems that 7 Jun 98 may occur 3. Resolve te occured problems 30 Jun 98 4. Re-testing the programs 1-15 Jul 98 5. Final summary of the results of program testing 1 Aug 98 - Software Package : solution for Lotus 123 problem NO. Detail of tasks Completion Date 1. Install the Windowa appliation in existing 15 Jun 98 functional hardware 2. Train and supervise the user to Transfer 30 Jul 98 data from Lotus 123 application to Windows application 3. Stop the usage of lotus 123 application 31 Aug 98 4. Set up computer team for counseling from 1 Aug - 30 Sep 98 application 1.2 AS/400 Software - In-house developed applications have already been designed for century compliance, the additional checking are NO. Detail of tasks Completion Date 1. To investigate and correct STOCK FILES 15 - 30 Jul 98 PROGRAMS of AS/400 2. To examine and correct ADDON PROGRAMS by 1 - 31 Aug 98 checking all loop of date and time process, writing Sub-routine to solve year 2000 problems and running test-program 3. To examine and correct PROMOTION & COMMISSION 1 - 30 Sep 98 PROGRAMS by checking all loop of date and time process, writing Sub-routine to solve year 2000 problems and running test-program 4. To examine and correct SALES & PROPERTY PROGRAMS 1 - 31 Oct 98 by checking all loop of date and time process, writing Sub-routine to solve year 2000 problems and running test-program 5. To examine and correct PAYROLL PROGRAMS by checking 1 - 30 Nov 98 all loop of date and time process, writing Sub-routine to solve year 2000 problems and running test-program 6. To re-examine and follow-up the results of program 1 - 31 Dec 98 running in real situation 7. To test all programs on hardware with system date of 1 Mar - 31 May 99 year 2000 - Software Package: J D Edwards which has full century compliance capabilities. The additional tasks are NO. Detail of tasks Completion Date 1. To test GENERAL LEDGER program 15 Jun 98 2. To test ACCOUNT RECEIVABLE program 30 Jun 98 3. To test ACCOUNT PAYABLE program 15 Jul 98 4. To test GENERAL LEDGER program 31 Jul 98 5. To test all programs on hardware with system 1 Mar - 31 May 99 date of year 2000 2. Plan for Hardware Problems Resolving 2.1 Personal Computer Hardware NO. Detail of tasks Completion Date 1. To inspect all personal computers and to 1 Feb - 31 Mar 98 test calculation of year 2000 2. To summarise the problems, to set and 1 - 15 Apr 98 implement the plans or to contact with vendor to solve problems 3. Out of order PC will be replaced by the new one, 31 Dec 98 summarise the number of new PC required. 4. To acquire new PC that is capable for the 15 Jan 99 century compliance 5. To install all new PC 31 Mar 99 2.2 Hardware system of AS/400 NO. Detail of tasks Completion Date 1. To install new OS of AS/400 that is capable 15 May 98 for the century compliance 2. To test run all applications on new OS 30 Jun 98 3. To test all programs on hardware with system 1 Mar - 31 May 99 date of year 2000 3. Plans for Property Operationall System i.e lectricity system, elevator and escalator system. Investigating and problem resolving procedures have been implemented starting from 1 February 1998 and expect to be completed within 31 October 1998. The procedures are - To list down all property operational systems - To contact the vendors to check all those systems - To obtain the certification from vendor for system that comply with year 2000 - To prepare solution by vendor for system that not pass year 2000 problems The budget in preparing for year 2000 crisis is consisted of Description Budget (Baht) 1. Acquire new personal computer with century 5,000,000 compliance capabilities to replace the existing one. 2. Expenses for test-run of programs on hardware 1,000,000 with system date of year 2000 and expenses to fix the property operational system Total 6,000,000 IV. The Progress of Year 2000 Problems Resolving 1. The Progress of Software Problems Resolving 1.1 In-house developed run on PC Activities to solve the software problems for food center business has already been completed as scheduled and it is in compliance with the century dating. 1.2 in-house developed application run on AS/400 Testing and solving are in process and some applications have been examined and resolved as planned. 1.3 Software Package : J D Edwards The Company has already test-run all J D Edwards applications to verify the accuracy of resulting date applications. 2. The Progress of Hardware Problems Resolving 2.1 Personal Computer Hardware As of 25 August 1998, the Company is gradually replacing the new PC by about 8% of the total number requried. Total cost is appoximately Baht 350,000. 2.2 Hardware System of AS/400 The Company has already installed new OS that has full century compliance capabilities since 15 May 1998 without any expense incurred. 3. The Progress of Property Operational Systems Problems Resolving The Company has inspected and examined about 70% of the property operational system,no year 2000 problems has been found. The vendor's certification is requesting. No any expenses incurred. V. Analysis and Management's Comment The senior management of the Company is fully aware of the effects from the year 2000 crisis and is preparing for the turn of the century. The Computer Department is assigned to take responsible for preparing solutions of the year 2000 problems. In addition, the management is also closely monitoring the millennium compliance. A project team comprised of the user's representatives and the represenatative from Computer Department is set up to summarise and solve thd problems that may occur. Action plan for problem resolving is implemented as scheduled. It is expected that solutions of the year 2000 problems to be completed within December 1998 and test-run to confirm the accuracy of the results to be completed within May 1999. The main issue of the millennium problen of the Company is only that a larhe number of personal computer hardware can not accommodate the year 2000 and has to be replaced. However, its effects is insignificant on the business operation. CERTIFICATE OF DIRECTORS We have examined the information and details in this report and confirm that the information is accurate, complete, true, not mislead or lack of significant information that may cause any damage to the stockholder or stock buyer. To be evidence that the documents are certified by us, Mr.Naris Cheyklin is assigned to be the person to endorse in every page of the report. In case any document is not been endorsed by Mr.Naris Cheyklin, we assume that document is not certified by us. Nmae Position Signature 1. Mr.Udane Tejapaibul Honorary Chairman 2. Mr.Anek Sithiprasana Vice Chairman 3. Mr.Viroj Phutrakul Director 4. Mrs.Suchittra Mongkolkiti Director 5. Mr.Sudhitham Chirathivat Director 6. Mr.Sudhiphand Chirathivat Director 7. Mr.Kobchai Chirathivat Director 8. Mr.Suthidej Chirathivat Director 9. Mr.Prin Chirathivat Director The Authorized Person : Nmae Position Signature 1. Mr.Naris Cheyklin Executive Director