Year 2000 compliance statement

The Group understands Year 2000 Compliance ("Y2K") to mean that neither the performance nor functionality of its critical equipment or systems will be affected by data relating to dates prior to, during and after Year 2000.

Work to ensure Y2K compliance of the Group's computer systems and electronic devices is well in progres. Detailed inventory checks of the Group's hardware and software have been completed. All affected equipment of the Group have either been replaced or modified to be Y2K compliant. It is expected that the entire Group will be Y2K compliant by November 1999..

One of the issues of the Y2K is the Group's reliance upon the interface with third parties such as suppliers, customers, business partners, operators, and service providers. The Group has started the process of obtaining their confirmation that they are Y2K compliant.

It is anticipated that the Y2K issue will not pose any significant operational problems to the Group and that expenditure associated with such compliance will amount to approximately S$200,000. Replacement costs of hardware and software will be capitalized and depreciated in accordance with the Group's accounting policies. Other costs are charged to the profit and loss account as and when incurred.

The Group is taking all reasonable steps to ensure that all computers systems and electronic devices will function properly and intention on 1st January 2000 and beyond. Recovery and contingency plans have been drawn up with a view to responding to any interruption in a speedy and organized manner to minimize potential impact. Having regard to the measures taken, the impact arising from any disruptions or failure,  is not expected to be significant to the operations of the Group.