In addition to the concerns stated above, we have also performed assessments of key suppliers to insure that they too will be capable of normal operations after this date. The assessments outlined herein, have been based on the AIAG (Automotive Industries Action Group) Year 2000 summary survey format commonly used by Automotive Suppliers.

1. Handle date information before, during and after midnight, December 31, 1999, including but not limited to accepting the date input; providing date output; and, performing calculations, and comparisons on dates or portions of dates. Date interpretation and manipulation must be correct for all valid date values within the application domain.

2. Function accurately and without interruption before, during and after January 1, 2000, without any change in operations associated with the advent of the new century.

3. Respond to two-digit year date input in a way that resolves the ambiguity as to the century in a disclosed, defined, and predetermined manner. Interfacing software must make the same century assumptions when processing two-digit years.

Processing year 2000 as a leap year

1. Correctly handle date fields containing non-date information and correctly handle a date held in a non-field.

2. Correctly process any date with a year specified as "99" and "00", regardless of other subjective meanings attached to these values. The Year 2000 may effect the manner in which computers operate or process information. As a result, Pearl Paints has taken necessary steps to insure that our business and related computerized systems will function properly into the Year 2000.

1. Business Computer Systems: Business applications and computer systems that support the day-to-day operations of the organization. These systems include all business applications supported by the organization's IT group enterprise-wide, for instance Product Design, Material Planning, Production Scheduling, Marketing, Sales, Accounting, Purchasing and Personnel. The organization's business rules are often embedded in these applications, in many cases date sensitive. Those systems defined as mission critical would need an audit/certification on Year 2000 compliance.

2. Technical Infrastructure: Vendor supplied or custom developed software, hardware, complete systems and equipment related to the technical infrastructure of the organization. Examples include data center hardware and software, database software, disaster recover facilities, networks, servers and desktop machines, e-mail, satellite, telephones and video, and all non-application software such as MS Office. Compliance may be achieved through natural migration or through repair or targeted replacement. Compliance will often be dependent on the product suppliers, and testing for consistent compliance across products will be an important aspect.

3. End User Computing: Application related software on the desktop - spreadsheets or databases often constructed by the desktop user, departmental systems not maintained by the central IT group, or ‘adhoc' reporting systems working off copies of production files. In some cases the results of desktop calculations are fed back into the corporate systems and errors at this level can lead to re-corruption.

4. Suppliers, Agents, Service Providers: Relationships with external organizations which are beyond one's management scope but which can affect the operation of one's own organization.

5. Manufacturing, Warehousing, Servicing Equipment: In often highly automated environments of manufacturing, material storage and distribution, and servicing, many organizations are locked into the technology driving their processes. A failure or error in these areas can interrupt core business, and leave the organization idling. Many operations are not in themselves date dependent, but may be providing date based fields to other processes, or functioning on machines that are date dependent. Some equipment may be controlled by custom developed software built for the explicit purpose, others may be purchased processes with embedded technology, such as paint booths or test equipment. In large organizations there may be many occurrences of equipment from the same supplier, and coordinated approach to compliance would be required.

6. Environmental Operations in Plants, Offices and other sites: Every building is subject to some degree of automation/technology, and disruption of these services can lead to loss of core operations. Examples to consider include HVAC, Security and access, elevators and escalators, PBX and Wireless communications, Fire and Alarm systems, externals such as power suppliers, on-site medical facilities and all EPA activity. How these are approached may differ according to the ownership and labor situation in each case.

7. The Organization's Products: In some cases, the product being supplied, either to a final customer or to a further assembly process, may contain microprocessors. In some instances these will have date related functions which need investigation. There are two areas of concern - the status of current and future products and the need to avoid introducing faulty goods, and previous products where the organization may be exposed to warranty or recall action.

8. Dedicated R&D Test Facilities: R&D facilities tend to be centers of technological excellence. Special attention is required in these areas, due to the often complex level of testing in product development, and the significance of errors going undetected. Unidentified but incorrect testing could result in the progression of flawed products into production with potentially enormous exposure.

The greatest concern regarding Year 2K, dealt with computer systems used to control manufacturing, laboratory and management functions, as well as related data. In an effort to effectively manage these issues, the following elements were addressed:

1. Software Platform upgrades.
2. Computer systems replacement.
3. Database revisions and analysis.
4. Continued vendor support to address future needs.

In addition to in-house systems evaluation, under the AIAG format, all key vendors were evaluated under self survey, to assess their ability to continue to support the organization and our customers after the Midnight December 31, 1999 deadline.