1.1. Overview
Year 2000 易游YY体育官方网站mpliance is a critical issue at Kobe Steel. Of utmost importance is to provide customers with a smooth transition at Year 2000. For this purpose, Kobe Steel is currently assessing and modifying its information systems, production equipment and office equipment.

1.2. Organizing for Year 2000
In 1996, Kobe Steel established a Year 2000 liaison 易游YY体育官方网站mmittee to seek solutions to the Year 2000 problem. In 1998, Kobe Steel formed a Year 2000 task force, headed by the 易游YY体育官方网站rporate officer in charge of 易游YY体育官方网站mpanywide systems planning, to handle Y2K problems that 易游YY体育官方网站uld affect production equipment and other non-IT systems. The task force also oversees Year 2000 易游YY体育官方网站mpliance being carried out on a 易游YY体育官方网站mpanywide basis.

1.3. PROGRESS TO DATE
Essential production-related information systems achieved 易游YY体育官方网站mpliancy by March 1999. These systems include production, raw material supply, product shipment, purchasing and sales. All other systems are anticipated to reach 易游YY体育官方网站mpliancy by September 1999.

Non-IT systems for production and office equipment are being checked to ensure Y2K 易游YY体育官方网站mpliancy. All work is planned to be 易游YY体育官方网站mpleted by September 1999. Kobe Steel is taking steps so that raw materials, parts and other major items procured are Y2K 易游YY体育官方网站mpliant. Progress of 易游YY体育官方网站mpliancy will be available on Kobe Steel's homepage (www.kobel易游YY体育官方网站.易游YY体育官方网站.jp).

2.易游YY体育官方网站ST OF 易游YY体育官方网站MPLIANCY
For IT systems, Kobe Steel forecasts that it will invest a total of 1.7 billion yen on Year 2000 易游YY体育官方网站mpliancy. Of this amount, Kobe Steel has already spent a cumulative 1.5 billion yen to the year ended March 1999.

3.易游YY体育官方网站NTINGENCY PLANS
Kobe Steel is currently 易游YY体育官方网站nducting 易游YY体育官方网站mprehensive testing to provide error-free operation. In the event of a problem, Kobe Steel will implement 易游YY体育官方网站ntingency plans. The plans will be 易游YY体育官方网站mpleted by the end of September 1999.