For many  years,  internally  developed  software  has been  developed  so as to
eliminate the need for revision in the Year 2000.  Less than 5.0 percent of this
category of software  remains to be updated and will be  completed by January 1,
2000.

The  company  has an  ongoing  process  to review the impact of Year 2000 on key
suppliers and customers and on outside  developed  software that runs on company
computers  or is  contained  within  processing  equipment.  Changes  to correct
potential  problems  identified  by  this  assessment  process  are  80  percent
complete. All required changes will be complete by January 1, 2000.

The company has queried its  significant  outside  suppliers and customers as to
their  exposure to Year 2000  problems.  The company is not aware of any outside
supplier or  customer  with a Year 2000 issue that would  materially  impact the
company's results of operations.  However,  the company has no means of ensuring
that outside suppliers and customers will be Year 2000 ready.

The company does not anticipate  delays in finalizing Year 2000 changes and does
not have  contingency  plans for such a  possibility.  The total  historical  or
anticipated remaining costs to remediate Year 2000 problems are not material.