8. Capital Structure

1.  Shareholders’ Equity

(Unit : Baht)

+----------------------------------+----------+-----------+----------+---+
|                                  | 2008     | 2007      | 2006     |   |
+----------------------------------+----------+-----------+----------+---+
| Registered share capital :       | 328,34   | 328,345   | 348,12   |   |
|                                  | 5,090.00 | ,090.00** | 8,690.00 |   |
+----------------------------------+----------+-----------+----------+---+
| Par value                        | 1.00     | 1.00      | 1.00     |   |
+----------------------------------+----------+-----------+----------+---+
| Paid-up share capital :          |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| paid-up share capital at the     | 323,76   | 332,8     | 322,13   |   |
| beginning of the period          | 5,330.00 | 94,970.00 | 5,910.00 |   |
+----------------------------------+----------+-----------+----------+---+
| shares purchase by exercising    | 15       | 10,6      | 8,22     |   |
| warrants of director             | 5,800.00 | 53,960.00 | 9,450.00 |   |
|                                  |          |           |          |   |
| and employees                    |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| shares purchase by exercising    | -        | -         | 2,52     |   |
| warrants of                      |          |           | 9,610.00 |   |
|                                  |          |           |          |   |
| shareholders                     |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| write-off treasury shares        | -        | (19,783,  | -        |   |
|                                  |          | 600.00)** |          |   |
+----------------------------------+----------+-----------+----------+---+
| paid-up share capital at the end | 323,92   | 323,7     | 332,89   |   |
| of the period                    | 1,130.00 | 65,330.00 | 4,970.00 |   |
+----------------------------------+----------+-----------+----------+---+
| Premiums on share capital :      |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| premiums on share capital at the | 149,42   | 149,4     | 147,77   |   |
| beginning of the                 | 0,557.75 | 20,557.75 | 6,311.25 |   |
|                                  |          |           |          |   |
| period                           |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| shares purchase by exercising    | -        | -         | 1,64     |   |
| warrants of                      |          |           | 4,246.50 |   |
|                                  |          |           |          |   |
| shareholders                     |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| premiums on share capital at the | 149,42   | 149,4     | 149,42   |   |
| end of the period                | 0,557.75 | 20,557.75 | 0,557.75 |   |
+----------------------------------+----------+-----------+----------+---+
| Warrant :                        |          | warrants  | warrants |   |
|                                  |          | of        | of       |   |
|                                  |          | director  | shar     |   |
|                                  |          | and       | eholders |   |
|                                  |          | employees |          |   |
+----------------------------------+----------+-----------+----------+---+
| Issued warrant (Units)           |          | 3         | 105      |   |
|                                  |          | 1,648,000 | ,493,430 |   |
+----------------------------------+----------+-----------+----------+---+
| Numbering of warrant was         |          | (2        | (41,     |   |
| exercised for year 2003 (unit)   |          | ,873,190) | 210,680) |   |
+----------------------------------+----------+-----------+----------+---+
| Numbering of warrant was         |          | (2        | (56,     |   |
| exercised for year 2004 (unit)   |          | ,836,410) | 244,760) |   |
+----------------------------------+----------+-----------+----------+---+
| Numbering of warrant was         |          | (2        | (5,      |   |
| exercised for year 2005 (unit)   |          | ,772,240) | 211,500) |   |
+----------------------------------+----------+-----------+----------+---+
| Numbering of warrant was         |          | (8        | (2,      |   |
| exercised for year 2006 (unit)   |          | ,229,450) | 529,610) |   |
+----------------------------------+----------+-----------+----------+---+
| Numbering of warrant was         |          | (10       | -        |   |
| exercised for year 2007 (unit)   |          | ,653,960) |          |   |
+----------------------------------+----------+-----------+----------+---+
| Numbering of warrant was         |          | (155,800) | -        |   |
| exercised for year 2008 (unit)   |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| Outstanding warrant as of        |          | 4,126,950 | 296,880  |   |
| December 31, 2008 (unit)         |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+

In accordance with the minutes of shareholders’ general meeting
No.1/2003 held on April 23, 2003, the shareholders have approved a
change in the par value of share (stock splitting) from BHT 10 to 1 per
share. On May 22, 2003, the Company registered the approved change of
its share capital with the Ministry of Commerce.

On April 30, 2001, the general meeting of shareholders 1/2001, the
Company approved the split of the Company’s shares. As a result, the
warrants for existing shareholders and for directors, employees and the
security sub-agent were split into 105,493,430 units and 31,648,000
units respectively, and the exercised price of the warrants for existing
shareholders to be changed from BHT 16.50 per share to BHT 1.65 per
share, whereby the rights to covert the warrant for previous
shareholders have been expired on December 15, 2006, and the warrants
for directors, employees and the security sub-agent to be changed BHT 10
per share to BHT 1 per share.

In 2008, the Company offered chance for the directors and employees to
exercise their rights to purchase ordinary shares for the last time
dated on January 14, 2008, totaling 155,800 units, remaining only the
Warrants whose rights have yet been exercised totaling 4,126,950 units.
Most are the unallocated Warrants totaling 3,943,610 units, and all
Warrants have already been expired since January 14, 2008.

**The Board of directors' meeting No.1/2004 held on February 24, 2004
has agreed to repurchase shares for the financial management reason, as
the Company had excess liquidity of 19,783,600 shares (valued at 122.64
million baht, with average of repurchase value of 6.20 baht/share),
which according to the ministerial regulation concerning "Criteria and
method of repurchase of treasury stock; the reselling of repurchase
shares and writing-off shares of a company" has stipulated that the
Company has to dispose of all of its repurchased shares within 3 years
from the date of completing the repurchase of shares, which is dated on
September 11, 2007, but the Company could not dispose any of the said
shares, as agreed in the resolution of Board of Directors meeting. To
comply with the above regulation, the Company, under the Board of
Directors meeting No. 4/2007 held on September 19, 2007, thus passed
resolutions to write off the Company’s treasury shares of 19,783,600
shares, resulting in the remaining paid-up capital of 328,345,090
shares. The Company has reduced it registered paid-up capital on October
24, 2007.

Number of shares and shareholders voting rights affected by NVDR
issuance An NVDR or Non-Voting Depository Receipt is a trading
instrument issued by the Thai NVDR Company Limited, a subsidiary -
wholly owned by the stock Exchange of Thailand (SET). NVDRs is
automatically regarded as listed securities in the SET. The objective of
issuing NVDRs is not only to stimulate trading activities in the Thai
stock market, but also to help eliminate foreign investment barriers,
such as the foreign investment limits and the impediments faced by
institutional investors who previously could not trade in the existing
Thai Trust Fund. Investors will receive all financial benefits; e.g.,
dividends, right issues or warrants, just as they had invested in the
Company’s common shares. The only difference between investing in NVDR
and the Company’s shares is the voting right. Additionally, although the
NVDR is designed mainly to ease foreign investment barriers, the SET
does not prohibit Thai investors from investing using this instrument.

As reported on the SET website as of November 28, 2008, the Company’s
common shares of NVDRs issued and outstanding is amounted to 3,634,750
shares or 1.12% of total registered paid-up shares of 323,921,130
shares. The NVDR holders will not be permitted to participate and vote
in shareholders’ meeting, except in the case of exercising their rights
to vote for withdrawal of shares of any listed company from the SET.

8.2 Shareholder Information

(a) Major Shareholders List of the first 10 major Shareholders according
to article 258, Securities Exchange Commission Act (B.E. 2535), as of
November 28, 2008. (latest share register closed date)

+-----+-----------------------------------+-------------+-------------+
| No. | Shareholders                      | Number of   | % of        |
|     |                                   | Shares      |             |
|     |                                   |             | Paid-up     |
|     |                                   |             | Capital     |
+-----+-----------------------------------+-------------+-------------+
| 1   | HSBC (SINGAPORE) NOMINEES PTE.    | 43,000,000  | 13.27       |
|     | LTD.                              |             |             |
+-----+-----------------------------------+-------------+-------------+
| 2   | GMM Grammy Public Company Limited | 42,422,200  | 13.10       |
+-----+-----------------------------------+-------------+-------------+
| 3   | Mr. Rit Thirakomen                | 23,008,782  | 7.10        |
+-----+-----------------------------------+-------------+-------------+
| 4   | Mr. Thanong Chotisorayuth         | 14,849,742  | 4.58        |
+-----+-----------------------------------+-------------+-------------+
| 5   | Mr. Yuen Poovarawan               | 13,174,940  | 4.07        |
+-----+-----------------------------------+-------------+-------------+
| 6   | Mr. Pongsak Sivapatrakumpol       | 10,850,842  | 3.35        |
+-----+-----------------------------------+-------------+-------------+
| 7   | Bangkok Assurance Public Company  | 10,764,500  | 3.32        |
|     | Limited                           |             |             |
+-----+-----------------------------------+-------------+-------------+
| 8   | RAFFLES NOMINEES PTE. LTD.        | 7,184,100   | 2.22        |
+-----+-----------------------------------+-------------+-------------+
| 9   | Mr. Phairat Sittakul              | 6,405,166   | 1.98        |
+-----+-----------------------------------+-------------+-------------+
| 10  | Open long-term fund shares        | 5,778,800   | 1.78        |
|     | dividend Ayutthaya                |             |             |
+-----+-----------------------------------+-------------+-------------+
| To  |                                   | 177,439,072 | 54.78       |
| tal |                                   |             |             |
+-----+-----------------------------------+-------------+-------------+

Remark The issued and paid–up capital, as of November 28, 2008, is equal
to 323,921,130 Baht.

  Investors can view the current Shareholder’s information from the
  Company’s website before the date of the annual Shareholder’s meeting.

Company's ordinary shareholders (SE-ED) held by Thai NVDR limit of
3,634,750 shares or 1.12% of the paid up capital. The details are as
follows :

  --------------------------------------------------------------------------------- ----------------------------------------- ----------- ---------
  No.                                                                               Shareholders                              Number of   % of
                                                                                                                              Shares      capital

  1                                                                                 MORGAN STANLEY & CO. INTERNATIONAL PLC.   1,317,700   36.25

  2                                                                                 DBS VICKERS SECURITIES (SINGAPORE) PTE.   600,000     16.51
                                                                                    LTD.                                                  

  3                                                                                 MR.KUCKENBECKER, FRED JAMES               550,500     15.15

  4                                                                                 KIM ENG SECURITIES PTE. LTD.              263,000     7.24

  5                                                                                 MR. ADAM REUTERSKIOLD ARNBACK             146,900     4.04

  No.                                                                               Shareholders                              Number of   % of
                                                                                                                              Shares      capital

  6                                                                                 NOMURA SINGAPORE LIMITED-CUSTOMER         132,900     3.66
                                                                                    SEGREGATED ACCOUNT                                    

  7                                                                                 PHILLIP SECURITIES PTE. LTD.              82,900      2.28

  8                                                                                 HANS ULRICH LUTHER                        60,000      1.65

  9                                                                                 MR. KATSUMI SATA                          50,000      1.37

  []10                                                                              []Ms. INKAWAN MILLER-STERLING             50,000      1.37

  11                                                                                MR. GUNTER FALTIN                         49,300      1.36

  12                                                                                HANS ULRICH LUTHER                        31,400      0.86

  13                                                                                MR. BRENT LEE BARGMANN                    30,000      0.83

  14                                                                                MR. PETER MCGUINNESS JEFFREYS             20,000      0.55

  15                                                                                MR. BARRY JAMES ARMSTRONG                 18,300      0.50

  16                                                                                INDIVIDUAL SHAREHOLDERS                   231,850     6.38

  Total                                                                                                                       3,634,750   100

  Remark:                                                                                                                                 
  http://www.set.or.th/set/nvdr/nvdrholder.do?symbol=SE-ED&language=en&country=US                                                         
  --------------------------------------------------------------------------------- ----------------------------------------- ----------- ---------

  Distribution of shares

Distribution of shareholding as at November 28, 2008 (Book closing date
of the last registration).

  --------------- -------------- ------------- ------- ------------ ------------- ------- -------- ------------- --------
  ITEM            Share                                                                   Total                  
                  Distribution                                                                                   

                  Individual                           Juristic                                                  
                                                       individual                                                

                  Number         Shares        %       Number       Shares        %       Number   Shares        %

  Thai            2,570          194,561,076   60.06   34           70,244,984    21.69   2,604    264,806,060   81.75
  shareholders                                                                                                   

  Foreign         11             1,907,070     0.59    10           57,208,000    17.66   21       59,115,070    18.25
  shareholders                                                                                                   

  Total           2,581          196,468,146   60.65   44           127,452,984   39.35   2,625    323,921,130   100.00
  --------------- -------------- ------------- ------- ------------ ------------- ------- -------- ------------- --------

At the registration last date, there were 2,604 Thai national
Shareholders totaling 264,806,060 shares (81.75%) which consists of 34
juristic persons and 2,570 individual shareholders, 21 foreign
shareholder, totaling 59,115,070 shares (18.25%), which consisted of 10
juristic persons and 11 individual shareholders.

(b) Names of main Shareholders who practically have material influence
in prescribing the management policy or the Company operation is GMM
Grammy Public Company Limited.

(c) The actual share holder of HSBC (Singapore) Nominees PTE. LTD. is
Mr. Edward Phillip Burke, a British citizen.

8.3 Dividend Payment Policy

The Company declared a policy to pay dividend no less than 50% of the
net profit after the deduction of corporate income tax based on
financial statement using the equity method, by proposing that the
dividends be paid on annual basis the year following the Annual General
Shareholders’ Meeting, except the interim dividends payment. The Board
of Directors has legal right to approve the dividends payment and
reports to the shareholders to acknowledge in the following
Shareholders’ meeting.

The dividend payments for lasted 3 years are as follow :

+----------------------+----------+-----------+----------+------------+
| Dividend payment     | Dividend | Dividend  | Net      | Dividend   |
| from                 | payment  |           | profit   | payout     |
|                      | date     | Per share |          | ratio      |
| operations results   |          | (Baht)    | (        |            |
|                      |          |           | Thousand |            |
|                      |          |           | Baht)    |            |
+----------------------+----------+-----------+----------+------------+
| Year 2008 :          |          |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 1            | 6        | 0.10      | 52,985   | 61.13      |
|                      | /06/2008 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 2            | 5        | 0.10      | 56,842   | 56.99      |
|                      | /09/2008 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 3            | 11       | 0.10      | 46,610   | 69.50      |
|                      | /12/2008 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 4            | 28       | 0.29*     | 38,195   | 245.94     |
|                      | /05/2009 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Total for 2008       |          | 0.59      | 194,632  | 98.19      |
+----------------------+----------+-----------+----------+------------+
| Year 2007 :          |          |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 1            | 8        | 0.10      | 32,691   | 98.98      |
|                      | /06/2007 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 2            | 6        | 0.10      | 36,178   | 89.48      |
|                      | /09/2007 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 3            | 11       | 0.10      | 60,387   | 53.61      |
|                      | /12/2007 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 4            | 23       | 0.26      | 54,544   | 154.41     |
|                      | /05/2008 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Total for 2007       |          | 0.56      | 183,800  | 98.65      |
+----------------------+----------+-----------+----------+------------+
| Year 2006 :          |          |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 1            | 9        | 0.10      | 33,363   | 93.32      |
|                      | /06/2006 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 2            | 11       | 0.10      | 49,668   | 62.79      |
|                      | /09/2006 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 3            | 08       | 0.10      | 58,728   | 53.07      |
|                      | /12/2006 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 4            | 23       | 0.30      | 67,432   | 143.96     |
|                      | /05/2007 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Total for 2006       |          | 0.60      | 209,191  | 91.09      |
+----------------------+----------+-----------+----------+------------+
| Note : * Rate of     |          |           |          |            |
| dividend per share   |          |           |          |            |
| is proposed by the   |          |           |          |            |
| board of directors,  |          |           |          |            |
| whereby such rate    |          |           |          |            |
| will be decided at   |          |           |          |            |
| the board meeting on |          |           |          |            |
| April 29, 2009, and  |          |           |          |            |
| the rate is          |          |           |          |            |
| calculated from      |          |           |          |            |
| common shares stated |          |           |          |            |
| on November 28,      |          |           |          |            |
| 2008.                |          |           |          |            |
+----------------------+----------+-----------+----------+------------+