2.2 Types of Business

  (1) Company’s Profile and its Significant Development

United Securities Public Company Limited was established by “ Sukanin”
Family on 1 April, 1971 under the name of “Silco Company Limited” to
perform securities business with an initial registered capital of Baht
500,000.

In 1989, the total business was sold to Wongkusolkit group and
Janvatanavit Group and the Company name was changed to “United
Securities Company Limited”. In the year 1991, the company was
designated broker No.38 by SET. The Company had transformed into Public
Company and was renamed accordingly to be United Securities Public
Company Limited. In 1994, we became a member of the Thai Bond Dealing
Center Member No.49.

In January, 2000, United Advisory Services Company Limited was
established in which the company had held 99.99% shares of the paid up
capital of Baht 10 million and United Advisory Services main business is
to provide Financial Advisory services.

In 2001, the company had issued IPO shares to be sold to the general
public which changed the Company’s Registered Capital to Baht
304,373,570 and all fully paid up with the total shares of 60,874,714
ordinary shares at Baht 5 par value.

On 8 August, 2001, the company had listed its shares in the Stock
Exchange of Thailand and adopted the abbreviation name as “US”.

Therefore, the Company’s registered capital at present is Baht
860million and the paid up capital was Baht 533.12million in the month
of June, 2002. The US-W1 was listed in the Stock Exchange of Thailand on
14 October, 2002. Consequently after the US-W1 had been converted for
the first time in November 2002, the Company’s paid up capital became
Baht 537 million.

(2) The Company’s Business

The Company’s business was done under securities license to perform 4
types of securities businesses, i.e. Securities Brokerage, Securities
Trading, Investment Advisory and Underwriting business. Up to present,
on 3 January 2003, we have altogether 4 branches - Rangsit, Nakornsawan,
Nakornpathom and Haad Yai.

As for the Company’s subsidiary, United Advisory Services Company
Limited (UAS) , it was set up to undertake Financial Advisory Services
Business.

(3) Income Structure of the Company and its Subsidiary

+----------------------------+------+--------+-----+-----+-----+-----+
| Income                     | Acqu | % of   | 31  |     | 31  |     |
|                            | ired |        | De  |     | De  |     |
|                            |      |        | cem |     | cem |     |
|                            |      |        | ber |     | ber |     |
|                            |      |        | 2   |     | 2   |     |
|                            |      |        | 001 |     | 002 |     |
+----------------------------+------+--------+-----+-----+-----+-----+
|                            | by   | shareh | M   | %   | M   | %   |
|                            |      | olding | ill |     | ill |     |
|                            |      |        | ion |     | ion |     |
|                            |      |        |     |     |     |     |
|                            |      |        | (Ba |     | (Ba |     |
|                            |      |        | ht) |     | ht) |     |
+----------------------------+------+--------+-----+-----+-----+-----+
| 1. Securities Business     | US   | -      |     |     |     |     |
| Income                     |      |        |     |     |     |     |
+----------------------------+------+--------+-----+-----+-----+-----+
| Brokerage Fees             |      |        | 49  | 44  | 247 | 78  |
|                            |      |        | .82 | .75 | .84 | .74 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Fee and Service            |      |        | *   | 44  | *57 | 18  |
|                            |      |        | *49 | .38 | .47 | .26 |
|                            |      |        | .41 |     |     |     |
+----------------------------+------+--------+-----+-----+-----+-----+
| Gain(loss) on Trading in   |      |        | -0  | -0  | -2  | -0  |
| Securities                 |      |        | .52 | .47 | .24 | .71 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Interest & dividend on     |      |        | 5   | 5   | 8   | 2   |
| securities investment      |      |        | .81 | .22 | .85 | .81 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Interest on loan           |      |        | -   | -   | 1   | 0   |
|                            |      |        |     |     | .79 | .57 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Securities Business Income |      |        | 104 | 93  | 313 | 99  |
|                            |      |        | .53 | .88 | .71 | .67 |
+----------------------------+------+--------+-----+-----+-----+-----+
| 2. Other Income            | US   | -      | 6   | 6   | 1   | 0   |
|                            |      |        | .82 | .12 | .03 | .33 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Total Income               |      |        | 111 | 100 | 314 | 100 |
|                            |      |        | .35 | .00 | .74 | .00 |
+----------------------------+------+--------+-----+-----+-----+-----+

Remark * inclusive of Financial Advisory Fee income from UAS of Baht
38.78 Million

** inclusive of Financial Advisory Fee Income from UAS of Baht 27.23
Million

  (4) The Company Objectives

The Objectives of the Company and its subsidiary are to focus on 3
groups of businesses namely Securities Broker, Investment Banking and
Securities Trading which in 2003 is forecast to have the following
income earning structure:

1. Securities Brokerage Income 80%

2. Securities Investment Banking Income 15%

3. Securities Trading Income 5 %

As the economics and the stock market situations were recovering and the
brokerage fee or commission was fixed to the minimum rate of 0.25%, the
Company was enable to acquire additional marketing team to help increase
its brokerage fee income. At the same time, the Company still emphasized
on the Financial Advisory and the debt instrument trading and
underwriting business which were less risky. The Company, therefore,
focuses on providing a “one-stop-shop” services to the customers. We
have been trying to increase branches in the potential areas as well as
developing personnel’s proficiency in order to acquire more customers’
base. Consequently, in 2002, the brokerage fee income had increased to
Baht 247million, the income from Financial Advisory and Underwriting
fees was Baht 19million and a loss from securities trading of
1.8million.