Despite some popular economic indicators to the contrary,1999 saw a continuing slide in the Thai economy. In practical terms, organizational restructuring and adjustments were common in all areas of business. Competition became tougher, particularly in the telecommunications industry which is notoriously intense. This, coupled with rapid changes in technology, meant that all companies at all levels had to perform to their absolute best.

During the past year Jasmine International Group continued to reorganize its activities. Debt was restructured; unprofitable businesses were divested; while attractive investment opportunities in Thailand were continually sought. In preparation for the transition from a state-regulated environment to a liberalized market, Jasmine sought an equity partner with an international reputation in the telecom business. Such a partner would help strengthen its position in preparation for competition with foreign operators.

The company also modernized its information systems, while assisting staff to keep up with the rapid advancements in technology. With the widely-feared consequences of the Y2K problem, the company began preparations in 1997 to deal with the threat. The Y2K steering committee and task forces charged with tackling the potential problems were able to handle the issues smoothly and the firm made a smooth transition to the new millennium with no adverse incidents.

With its extensive experience in the telecommunications business, the company has long had an eye on the tremendous growth potential in the increased Internet use by individuals as well as opportunities in Internet-related commerce. Jasmine International therefore plunged deeper into the Internet towards the end of 1999 by taking a 65%share in Info Access, a local Internet Service Provider. It was renamed "Jasmine Internet" and will spearhead Jasmine's ambition to be a leading ISP in Thailand by splicing together all its strategically-placed resources such as the submarine optical fibre cable network operated by Jasmine Submarine Telecommunications(JSTC) and Acumen's satellite communications network. These backbone networks have the potential to form a high-efficiency Internet Protocal network carrying local and international Internet Protocal traffic for Jasmine Internet. The new company is expected to grow quickly and soon be an important revenue earner for the group.

Having conducted business cautiously, we have been able to weather the economic crisis reasonably well and are ready to resume our momentum. In the first quarter of 2000, Jasmine expects to succeed in restructuring its debt by extending the repayment period. This will reduce both the interest burden and the cost of capital. The company will also increase it registered capital by issuing shares for private placement. The capital raised will be first to invest into expansion projects for communications networks, voice and data information services and Internet activities and the most importantly to strengthen the Group's financial position by which to repay our creditors and to utilize for future working capital.

Jasmine International wishes to express its sincere appreciation to shareholders for their trust in us. We are also grateful to financial institutions for their cooperation, understanding and confidence. Finally, we would like to thank our faithful teams of staff everywhere in Thailand. Without their dedication we would not have achieved results of which we can all be justly proud.

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