THE PREPARATION TO HANDLE THE YEAR 2000 PROBLEM (30 SEP 98)

Form 57 (Y2K) Report of the preparation to handle the Year 2000 Problem The Electricity Generating Public Company Limited (EGCO), a holding company, holds 99.99% stake in both the Rayong Electricity Generating Company Limited and the Khanom Electricity Generating Company Limited which generate and supply electricity to The Electricity Generating Authority of Thailand (EGAT) as well as holds shares in other subsidiaries and affiliated companies which do electricity related business and other business The head office is located at 444 Olympia-Thai Tower 18th-19th Floor, Racha- dapisek Road, Samsen-nok, Huaykwang, Bangkok 10320 Tel.513-2330 Fax.513-7335-6. EGCO would like to issue the preparation to handle the Year 2000 problem report No.2 as of September 30th,1998 The preparation to handle the Year 2000 problem 1. The shift of steps to solve the Year 2000 problem The EGCO and subsidiaries will shift the third step to solve the Year 2000 problem (Renovation and Validation) from December 1998 to January 1999 and the fourth step (Implementation) from August 1999 to September 1999 because the EGAT's electricity system control center will postpone the shut down schedule approximately 1 month. 2. The current status of the Year 2000 problem solving The following is the progress report as of September 30th,1998 which compares with the schedule plan: +------------------------------+---------------+-----------------+ | | 1998 | 1999 | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ | |M|J|J|A|S|O|N|D|J|F|M|A|M|J|J|A|S| +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ |The preparation to handle | | | | | | | | | | | | | | | | | | | the year 2000 problem | | | | | | | | | | | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ |1. Awareness | |=| | | | | | | | | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ |2. Assessment | | | | | | | | | | | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ | Computer Systems | |=|=|=|=| | | | | | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ | Business Application System| |=|=|=|=| | | | | | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ | Office Automation System | |=|=|=|=| | | | | | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ | Power Generation System | |=|=|=|=| | | | | | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ | Plant Maintenance Systems | |=|=|=|=| | | | | | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ | Fuel Supply System* | |-|-|-|-| | | | | | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ | Transmission System* | |-|-|-|-| | | | | | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ | External Information System| |=|=|=|=| | | | | | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ |3. Renovation and Validation | | | |-|-|-|-|-|-| | | | | | | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ |4. Implementation | | | | | | | |-|-|-|-|-|-|-|-|-|-| +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ |5. Contingency Plan | | | | | | | | |-|-|-|-|-|-| | | | +------------------------------+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+ - : Plan = : Action * During the process of inquiring the responsible units : EGAT and the Petroleum Authority of Thailand. The following is the details of the Year 2000 problem solving: +---------------------------+----------+----------+-----------+---------+------------+--------+ | System |Awareness |Assessment|Renovation |Implemen-| Expense | Remark | | | | |&Validation|tation | (Baht) | | | |Target on |Target on | Target on |Target on| | | | | Jun 98 | Sep 98 | Jan 99 | Sep 99 | | | +---------------------------+----------+----------+-----------+---------+------------+--------+ |Computer Systems | | | | | |On | |-Computer Hardware | | | | | |schedule| |-Operating Systems | | | | | | | |-Database Management | | | | | | | |System | | | | | | | |-Data communication | | | | | | | | Network LAN,WAN | | | | | | | +---------------------------+----------+----------+-----------+---------+------------+--------+ |Business Application | | | | | |On | |System | | | | | |schedule| |-Lotus Notes | | | | | | | |-SAP | | | | | | | +---------------------------+----------+----------+-----------+---------+------------+--------+ |Office Automation | | | | | |On | |System | | | | | |schedule| +---------------------------+----------+----------+-----------+---------+------------+--------+ |Power Generation | | | | |REGCO700,000|On | |System | | | | |(Consultant)|schedule| +---------------------------+----------+----------+-----------+---------+------------+--------+ |Fuel Supply System | | | | | |On | | | | | | | |schedule| +---------------------------+----------+----------+-----------+---------+------------+--------+ |Transmission System | | | | | |On | | | | | | | |schedule| +---------------------------+----------+----------+-----------+---------+------------+--------+ |External Information | | | | | |On | |System | | | | | |schedule| +---------------------------+----------+----------+-----------+---------+------------+--------+ |Training/Seminar | | | | |EGCO 32,000 | | |about the Year 2000 Problem| | | | |REGCO 5,000 | | +---------------------------+----------+----------+-----------+---------+------------+--------+ |Total Expense (Baht) | 37,000 | 700,000 | | | 737,000 | | +---------------------------+----------+----------+-----------+---------+------------+--------+ : 100% completed : In progress 5. Management Discussion and Analysis The Year 2000 Solving Steering Committee has interested in the Year 2000 problem and assigned The Year 2000 Solving Working Group to study the data of the same power plants as the Rayong and Khanom Power Plants which have already solved the Year 2000 problem and invited their experts to interchange knowledge and experience. The Year 2000 Solving Working Group invited an expert from Elsag Bailey (Canada) Inc. in solving Year 2000 problem of the Power Plants in Canada to join the seminar about "Solving Year 2000 Problem for Plant Automation System" on Friday 11, September 1998 at Rachada 1 room, Chaophya Park Hotel. The Year 2000 Solving Working Group thought that this seminar was the useful direction to solve the Year 2000 problem to the power plant and related businesses, thus they invited about 50 participants such as the representatives from EGCO and subsidiaries, EGAT, the Petroleum Authority of Thailand and National petrochemical Public Company Limited to join. Up to now, every step goes on schedule due to the cooperation from the management, staffs and consultants. The certification of information We hereby certify that all information in this report is complete and accurate, not misleading or not lacking in significant information which may prejudice shareholders or investors. In this case, we have assigned Mr.Worawit Khamkanist to affix his signature on every page of all certified documents in order to be the evidence as the same series. If any document is not signed by Mr.Worawit Khamkanist, we assume that such document is not certified. Name Position Signature Dr.Djakkrit Puranasamriddhi Chairman of the Board of Directors ____________________ and Independent Director Mr.Sirin Nimmanahaeminda Independent Director ____________________ Mr.Boonshai Jiwalai Independent Director ____________________ Mr.Chaiwat Wongwattanasan Director ____________________ Mr.Sommai Phasee Director ____________________ Mr.Sawanit Kongsiri Director ____________________ Mr.Khien Vongsuriya Director ____________________ Mr.Boonchoo Direksathapon Director ____________________ Mr.Worawit Khamkanist Director ____________________ Mr.James Seymour Dickson Leach Director ____________________ Mr. Ross Edward Sayers Director ____________________ Mr. Kenneth Warren Oberg Director ____________________ Mr. Worawit Khamkanist Managing Director and ____________________ (Appointee) Chairman of The Year 2000 Solving Steering Committee