Dear Customer

PEOPLE'S BANK AND THE "Y2k' CHALLENGE

It is very likely that you would have heard of what is being referred to as the '72K<-/> Issue "in relation to computers. The problem has arisen because a Calendar Year is identified in most computers by its last two digits only. For eg. "99" is interpreted to mean "Year 1999" Therfor, when Year 2000 Dawns, the last two digits "00" will be treated in most cases, as representing Year 1900 and not 2000. Some other computers will not accept "00" as any Year but being zeros, be treated as invalid and bring computers to a halt, or even cause serious calculation errors. Either way, left as it is without corrective action being taken, the problem will cause considerable difficulties to Computer Users. It will affect all organizations using computers and cause hardship to people who have dealings with them.

However, the People's Bank has been working on this problem for over three years and has taken necessary precautions to overcome same. This involved installing new Hardware in replacement of computers which were not Y2K Compliant, and changes to, or replacement of Software, as necessary, so that when the Year 2000 dawns all Branches and Departments of the Bank will be in a position to carry out the full range of Customer Services without any disruption. In other words, Customers will be assured of an uninterrupted service and as far as they are concerned will not feel any difference.

This communication is therefore intended to assure you that the People's Bank is adequately prepared to meet the "Y2K" challenge, that you will have no cause for worry and that your funds with the Bank are absolutely safe. Of course, as a prudent measure, we have also set in motion a contingency plan to deal with any situation, should an unlikely disruption occur.

Yours faithfully,

T.M. Kalupahana

Deputy General Manager

(Information Technology & Marketing)

PEOPLE'S BANK

- The pulse of the people-
