5. Assets employed in the conduct of business

5.1 Land, buildings

Details of the company’s land and building

+-----------------+----------+---------+-----------+----------------+
| Land, Office    | Area     | Type of | Net value | Encumbrances   |
| building        |          | rights  | (Baht)    |                |
+-----------------+----------+---------+-----------+----------------+
| 1)  1. Title    | 2 rai    | Deeded  | 4         | Mortgaged as   |
|     deeds no.   |          | o       | 3,700,000 | security for   |
|     216194-7    | 200 sq.  | utright |           | overdrafts and |
|                 | wah      | owner   | 2         | bank guarantee |
| Soi Sukhumvit   |          |         | 9,718,003 |                |
| 105 (Lasalle    | 4,097    | O       |           | Mortgaged as   |
| 56) Sukhumvit   | sq. wah  | utright | 1         | security for   |
| Road, Bangna    |          | owner   |           | overdrafts and |
| District,       |          |         |           | bank guarantee |
| Bangna          |          | O       |           |                |
| Sub-district    |          | utright |           |                |
| Bangkok 10260   |          |         |           |                |
|                 |          | owner   |           |                |
| 2)  2. Office   |          |         |           |                |
|     Building    |          |         |           |                |
|                 |          |         |           |                |
| 10 Soi Lasalle  |          |         |           |                |
| 56 Sukhumvit    |          |         |           |                |
| Road, Bangna    |          |         |           |                |
| District,       |          |         |           |                |
| Bangna          |          |         |           |                |
| Sub-district    |          |         |           |                |
| Bangkok 10260   |          |         |           |                |
|                 |          |         |           |                |
| 3. Land         |          |         |           |                |
| Improvement     |          |         |           |                |
+-----------------+----------+---------+-----------+----------------+

Details of other assets

+--------------+-----------+-----------+---------+-------------------+
| Assets       | Type of   | Net book  | Encum   |                   |
|              | ownership | value as  | brances |                   |
|              |           | of 31 Oct |         |                   |
|              |           | 2006      |         |                   |
|              |           |           |         |                   |
|              |           | (Baht)    |         |                   |
+--------------+-----------+-----------+---------+-------------------+
| Vehicles     | Outright  | 1.00      | none    |                   |
|              | owner     |           |         |                   |
+--------------+-----------+-----------+---------+-------------------+
| Vehicles     | On hire   | 8,9       | 847,951 | Vehicles under    |
|              | purchase  | 09,880.00 |         | Hire Purchase     |
|              |           |           |         | from The Siam     |
|              |           |           |         | Industrial Credit |
|              |           |           |         | Public Co., Ltd.  |
+--------------+-----------+-----------+---------+-------------------+
| Office       | Outright  | 3,3       | 2,      | GE Capital Auto   |
| Equipment    | owner     | 66,076.08 | 400,872 | Leasing Public    |
|              |           |           |         | Co., Ltd.         |
|              |           |           | 2,      |                   |
|              |           |           | 406,500 | TISCO Leasing     |
|              |           |           |         | Co., Ltd.         |
|              |           |           | 3,      |                   |
|              |           |           | 004,258 | BMW Leasing       |
|              |           |           |         | (Thailand) Co.,   |
|              |           |           | None    | Ltd.              |
+--------------+-----------+-----------+---------+-------------------+
| Office       | On hire   | 2         | 46,902  | SCB Leasing       |
| Equipment    | purchase  | 33,621.92 |         | Public Co., Ltd.  |
+--------------+-----------+-----------+---------+-------------------+
| Computer     | Outright  | 4,3       | None    |                   |
|              | owner     | 03,113.00 |         |                   |
+--------------+-----------+-----------+---------+-------------------+
| Equipment    | Outright  | 1,1       | None    |                   |
| and          | owner     | 74,791.00 |         |                   |
| machinery    |           |           |         |                   |
+--------------+-----------+-----------+---------+-------------------+
| Office decor | Outright  | 6,5       | None    |                   |
|              | owner     | 47,604.00 |         |                   |
+--------------+-----------+-----------+---------+-------------------+
| Operating    | Outright  | 11,2      | None    |                   |
| accessories  | owner     | 16,369.00 |         |                   |
+--------------+-----------+-----------+---------+-------------------+

5.2 Intangible assets

The company pays an annual royalty equals to 2.53 % of total revenue to
Pico Art International Pte. Ltd. (“Pico Art”). This is in connection
with an “Offshore Services Agreement and Intellectual Property License
Agreement” dated 10 July 1992 and amended 3 November 2003. Under this
agreement the company is entitled to use the logo, trade name,
technology and new innovation of Pico Art International Pte., Ltd. in
its conduct of business. This privilege will continue, irrespective of
Pico’s Art’s shareholding in the company, provided that the royalty
payment is paid until the company terminates the agreement.
Additionally, Pico Art agrees not to compete for business in Thailand
directly or indirectly. The agreement does not preclude Pico to serve
foreign clients in a foreign country provided that it is a direct
request by the clients.

5.3 Investment Policy

Pico’s policy is to invest in a business operation that will complement
and enhance its ability to deliver an integrated product offering e.g. a
design company.

Pico invested in PX System Co., Ltd. and Multi Designs Co., Ltd. in 1995
and Artcom Graphic Co., Ltd. and Inkjet Images Co., Ltd. in 1996.
Additional investments were made in 2006 in BEC Tero Exhibition Co.,
Ltd., IBRIX Co., Ltd., and DesignLab MISC Co., Ltd. in order to extend
our product range. These investments permit Pico to offer a
comprehensive and integrated product/service to clients.

In the management of these companies Pico is represented on the
executive board and participates in the setting of policy and the
implementation thereof. The subsidiaries and joint ventures are
encouraged to seek outside businesses to lessen dependence on Pico with
no greater than 30% of turnover being “captive” business. This will
encourage independent growth and reduce the overall operating risks.