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We present observations of the intensity variations of PSR 1642-03 due to refractive and diffractive scintillation at an observing frequency of 800~MHz. Spectra were recorded over an 80~MHz bandwidth for 11 hours with 30-second time resolution. We detected a 10-fold increase in the flux for about 100 minutes. We conclude that the increase is due to refraction of the pulsar emission by interstellar medium inhomogenities. A two-dimensional autocorrelation analysis was done to study decorrelation bandwidth and time scale variations and a possible connection between them and flux variations.