1.1. Overview
デュエルビッツ vipiance 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 committee to seek solutions to the Year 2000 problem. In 1998, Kobe Steel formed a Year 2000 task force, headed by the corporate officer in charge of companywide systems planning, to handle Y2K problems that could affect production equipment and other non-IT systems. The task force also oversees デュエルビッツ vipiance being carried out on a companywide basis.

1.3. PROGRESS TO DATE
Essential production-related information systems achieved compliancy by March 1999. These systems include production, raw material supply, product shipment, purchasing and sales. All other systems are anticipated to reach compliancy by September 1999.

Non-IT systems for production and office equipment are being checked to ensure Y2K compliancy. All work is planned to be completed by September 1999. Kobe Steel is taking steps so that raw materials, parts and other major items procured are Y2K compliant. Progress of compliancy will be available on Kobe Steel's homepage (www.kobelco.co.jp).

2.COST OF COMPLIANCY
For IT systems, Kobe Steel forecasts that it will invest a total of 1.7 billion yen on デュエルビッツ vipiancy. Of this amount, Kobe Steel has already spent a cumulative 1.5 billion yen to the year ended March 1999.

3.CONTINGENCY PLANS
デュエルビッツ viptly conducting comprehensive testing to provide error-free operation. In the event of a problem, Kobe Steel will implement contingency plans. The plans will be completed by the end of September 1999.