Section 1

Executive Summary

SE-Education Public Co., Ltd. operates in the business of book and
magazine publishing that helps develop the knowledge and capability for
Thais, in the direction that is beneficial for the country’s
development. The Company distributes books both from its own publishing
division and also from other publishers. Moreover, the Company also
operates its own bookstores ‘SE-ED Book Center’ and network bookstores
which consists of bookstores like ‘Book Variety’ and several
universities bookstores located in Bangkok and other provinces. SE-ED
Book Center is currently ranked number one in terms of nation-wide book
sales. Retail bookstore business is accounted for 85% of overall
Company’s revenue.

The overall economic situation in 2006 was still in the period of slow
down from several factors causing the negation effect to dwindle the
confidence and investment sentiment from investors. The causes of this
slump can be attributed to several factors such as the fluctuation of
world petroleum price or the increasing of inflation rate and the ever
increasing of interest rate, the flood disaster in several provinces the
disorders in deep southern part, including the unstable political
situation. This resulted in people lesser desire to consume. It can be
said that it is one of the hardest years for retail business, although
there was some positive effect from the occasion of the 60^(th)
anniversary of HM the King’s accession to the throne.

The economic depression of retail business in overall picture can be
evidently seen through out the year of 2006 and worsened toward the
year’s end but again the overall books business continued to grow in
quite satisfactory level. This is the result of the sales of products
from the celebration of the occasion of the 60^(th) anniversary of HM
the King’s accession to the throne. SE-ED Books Center had increased
products of Nano technology T-shirt for an auspicious occasion of the
60^(th) anniversary of His Majesty the king’s accession to the throne
with nearly two hundred thousand units sold. This has affected much to
the revenue in the second quarter 2006. In addition, the company has
implemented the information technology to be used in SE-ED Book Center,
since October. This helped the management effectiveness to improve for a
certain extent.

In 2006, the Company has opened 26 SE-ED Book Center branches. When
combined with the existing stores as of 31^(st) December 2006, there are
216 branches and the total point of sales of 170 points.

In 2006, the Company expanded the SE-ED Book Center continuously,
because it believed that the room for book business to grow is still
abundant. The Company redesigned the business to allow more profitable
business, testing new business design to suit the size of community in
each locale, and also stresses the increasing role as book distributor
and publisher, that is in line with the growth direction of book
business in overall picture. Moreover, the Company stressed the
information system development, communication system between nation-wide
branches and headquarters, and distribution center to support the
variety of service in the future, increasing effective service and
reduce the possibility of loss.

As the result of Company’s emphasis on consistent good corporate
governance practice, it has been assessed by the Institute of Directors
(IOD) as the company with good corporate governance in the third quarter
2006 at the level of ‘very good’, particularly in the section of
shareholders’ rights and information disclosure and transparency which
is evaluated as ‘excellence’ – the only company in publishing sector who
received score from good corporate governance from ‘very good’ to
‘excellence’.

The Company’s operating result in year 2006 can be regarded as
satisfied, when related it to the mentioned economic instability. The
Company has net profit for 2006 at THB 209.19 million, with the increase
from the same period last year at 11.32%, while the net profit for the
fourth quarter 2006 is amounted at THB 67.43 million, with an increase
when compared to the third quarter 2006 by 14.82%, and the growth has
been at 2.57% which is the result of Harry Potter book 6^(th) launched
at the end of 2005.

The Company’ revenue for 2006 is amounted to THB 3,725.75 million, or
the growth as compared to the same period of last year at 9.87%, of
which amount is the revenue from the sale of THB 3,680.70 million, or
the growth of 9.38%, whereby the majority of them comes from SE-ED Book
Center and Book Variety which has increased 10.42% as the result of
additional opening of branches and point of sales and also the growth
resulted from renovated stores. Moreover, the revenue from other
non-SE-ED stores distribution also increased by 5.89%.

From the mentioned business result from operation, the meeting of Board
of Directors has jointly approved and agreed with appropriateness to
submit the proposal at the shareholders’ meeting to consider the
dividend payment for the result of business operation in 2006 a the THB
0.60 per share, but as the Company has already paid for the dividend for
the past three quarters at the amount of THB 0.10 per share per quarter,
which are totaled at THB 0.30. Therefore, the Company will pay in
addition to the paid amount at the 0.30 per share, by determining the
book registration for the right to receive dividend on Wednesday 9^(th)
May, 2007, at 12.00 a.m, and determine the dividend payment date on
Tuesday 23^(rd), May, 2007.

(Investors should study the detail information in the part II before
deciding to purchase the shares)