THE PREPARATION TO HANDLE THE YEAR 2000 PROBLEM,DEC 31,1998

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 222 EGCO Tower, Vibhavadi Rangsit Road, Laksi, Bangkok 10210 Tel.955-0955 Fax. 955-0956-7. EGCO would like to issue the preparation to handle the Year 2000 problem report No. 3 as of December 31st, 1998 The preparation to handle the Year 2000 problem 1. The shift of steps to solve the Year 2000 problem No change. 2. The current status of the Year 2000 problem solving The following is the progress report as of December 31st,1998 which compares with the schedule plan: 1 9 9 8 1 9 9 9 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 % % & REGCO On System 700,000 (Consultant) schedule 6,700,635 (Equipment) KEGCO 8,500,000 (Equipment) Fuel Supply System % Pending Transmission System % Pending External Information % % & On System schedule Training/Seminar % % % EGCO 50,020 about the Year 2000 Problem REGCO 5,000 Total Expense (Baht) 55,020 700,000 15,200,635 15,955,655 % : 100% completed & : In progress 3. Management Discussion and Analysis There are some problems such as the late and unclear letters from the manufacturers, the imminent delivery of equipment and the EGAT's electricity system control center postponed the shutdown schedule. They affect the shutdown schedule as well as Y2K testing plan and create some difficulties in coordinating with the supervisors. Nevertheless, these problems will be managed within the schedule plan. The next tasks are to shutdown the remaining machines to change equipment and to perform integrated test, which no problem is anticipated. The contingency plan will be completed within the target. 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