2. Nature of Business Operation

2.1 History and Major Changes

The Company was established on July 9, 1973 and operated Electronics and
Information Technology product businesses. In 1991 the Company was
listed on the Stock Exchange of Thailand and then became a Public
Company Limited in 1992.

As a result of the economic crisis in Thailand in 1997, the Company went
through the rehabilitation process in 2000. That process has now been
completed and the Company has been operating as usual since October 11,
2004.

The Company restructured its business in 2005 in order to strengthen its
financial position and generate continued profits. It chose Information
Technology as its core business, and consequently sold off those
investments and assets which were not related to this core business.

The Company’s performance gradually improved throughout 2006. This
prompted the Stock Exchange of Thailand to remove the Company’s
securities from the REHABCO category and allow them to be traded in the
Technology group under the Information Technology and Communication
category. Major activities carried out by the Company during the year
under review included:

  May 10, 2006 The Company moved its head office from No. 1/10 Moo 4,
  Bang Chan Industrial Estate, Seri Thai Road, Kwang Kanna Yao, Khet
  Kanna Yao, Bangkok 10230 to ONE Premier Corporate Park Building, Soi
  Premier 2, Srinakarin Road, Kwang Nong Bon, Khet Prawet, Bangkok
  10250.

  July 12, 2006 The Stock Exchange of Thailand removed the Company’s
  securities from the REHABCO category and allowed them to be traded in
  the Technology group under the Information Technology and
  Communication category.

  August 11, 2006 The Company appointed Mr. Viwat Phongsathorn – the
  Managing Director of the subsidiary which operates the Company’s core
  business – as Managing Director of the Company in place of Mr. Vichien
  Phongsathorn.

  September 29, 2006 The Company sold 533,196 shares of its investment
  in Kulthorn Premier Company Limited to Kulthorn Kurby Public Company
  Limited.

  October 27, 2006 The Company registered a name change from “Premier
  Engineering and Technology Public Company Limited” to “Premier
  Technology Public Company Limited”. It also registered a change in the
  Company’s symbol used for securities trading from “PE&T” to “PT”. In
  addition, the Company reduced its registered capital by canceling the
  unsubscribed ordinary shares in the amount of 4,189,817 shares at 10
  Baht per share. This resulted in the Company’s registered capital
  being reduced from 1,466,303,060 Baht to 1,424,404,890 Baht divided
  into 142,440,489 shares at 10 Baht per share.

  December 18, 2006 The Company registered the reduction of its
  registered capital and reduced paid-up capital from the par value of
  10 Baht to 1 Baht. This helped to compensate for its accumulated
  losses and resulted in registered capital of 142,440,489 Baht and a
  paid-up capital of 141,944,471 Baht.

The Company’s core business is now to invest in the Information
Technology Business, which is Datapro Computer Systems Company Limited
(“DCS”) – a Total Enterprise Solution Provider. Following is the history
of DCS :

1986. DCS was appointed as a distributor of IBM mid-range computers. Its
      performance was outstanding, resulting in its winning the
      following awards from IBM – Asia Pacific Region in 1995: “Best IBM
      Customer Satisfaction – ASEAN Award” and “Top IBM AS/400 Business
      Partner – ASEAN”. In 1997 DCS received the following awards: “Best
      IBM Customer Satisfaction – ASEAN Award” and “Best IBM Customer
      Satisfaction – AP Award”.

  1992 DCS increased its range of software product offerings by becoming
  a distributor of J.D. Edwards’ Enterprise Resource Planning (ERP)
  application software. DCS was subsequently honored with the “Top J.D.
  Edwards ASEAN Business award” from J.D. Edwards – Asia Pacific Region
  in 1995. (ORACLE Corporation now owns J.D. Edwards software.)

  1994 DCS expanded its hardware business by becoming a disdtibutor of
  SANYO multimedia products. It leased these products to customers in
  both public and private sectors, enabling them to broadcast video
  signals and display the results through the use of various multimedia
  connections.

  1996 DCS expanded its Information Technology business to cover all
  products and services required by customers. It became a CISCO dealer
  providing installation and consultation on computer network
  infrastructure.

  1999 DCS grew its software product business by becoming a Business
  Objects distributor providing installation, training and consulting
  services for Business Intelligence (BI) application software products.
  This product helps customers to analyze data and support management
  decision making for maximum efficiency. DCS is now a distributor
  providing installation, training and consultancy for the WebFOCUS
  product from Information Builders Inc.

  2001 DCS added another hardware product to its portfolio and gave
  customers more choices when it became a dealer of Hewlett-Packard (HP)
  medium-size computers and servers.

  2005 DCS set up a Disaster Recovery Center (DRC). This Center provides
  a comprehensive Information Technology outsourcing service for those
  customers who do not wish to manage their own Information Technology
  equipment and personnel.

  2006 DCS added another partnership and became dealer of SAP software,
  providing installation, training and consulting services for
  enterprise software applications and business solutions. In addition,
  DCS developed a new product called “Hotel Management Analytic
  Application (HMAA)” software to help hotel managements make better
  informed decisions. DCS received special investment support from the
  Board of Investment (BOI) as its business is considered important and
  beneficial to the country. It has been exempted from corporate income
  tax for 8 years.

2.2 Overall performance of the Company and Its Subsidiary

At present, the core business of the Company and its subsidiary is the
Information Technology Business. It is a Total Enterprise Solution
Provider which operates through its subsidiary, Datapro Computer Systems
Co., Ltd. Its products can be divided into 2 main groups as follows:

1)  Hardware and Software Product Group – The products in this group
    include IT, multimedia, system & data management software, and
    application software.

2)  Service Group – The services provided include annual maintenance,
    training and consulting, outsourcing and others.

  Below is the shareholders’ structure as at December 31, 2006:

[]

  PT = Premier Technology Public Company Limited

  DCS = Datapro Computer Systems Company Limited

  PFC = Premier Fission Capital Company Limited

2.3 Revenue Structure

The revenue structure of the Company and its subsidiary over the past 3
years is shown below:

Unit : Million Baht

+-------------------------+-----+-------+----+---+----+---+----+---+
| Product                 | Op  | % of  | 20 |   | 20 |   | 20 |   |
|                         | era |       | 06 |   | 05 |   | 04 |   |
|                         | ted | Co    |    |   |    |   |    |   |
|                         |     | mpany |    |   |    |   |    |   |
|                         | By  |       |    |   |    |   |    |   |
|                         |     | Sh    |    |   |    |   |    |   |
|                         |     | areho |    |   |    |   |    |   |
|                         |     | lding |    |   |    |   |    |   |
+-------------------------+-----+-------+----+---+----+---+----+---+
|                         |     |       | R  | % | R  | % | R  | % |
|                         |     |       | ev |   | ev |   | ev |   |
|                         |     |       | en |   | en |   | en |   |
|                         |     |       | ue |   | ue |   | ue |   |
+-------------------------+-----+-------+----+---+----+---+----+---+
| IT Product/Service      |     |       |    |   |    |   |    |   |
| Group                   |     |       |    |   |    |   |    |   |
+-------------------------+-----+-------+----+---+----+---+----+---+
| 1. Hardware and         | DCS | 80.00 | 1  | 8 | 9  | 6 | 8  | 6 |
| Software Product Group  |     |       | ,1 | 0 | 07 | 8 | 02 | 1 |
|                         |     |       | 57 | . |    | . |    | . |
|                         |     |       |    | 3 |    | 7 |    | 2 |
+-------------------------+-----+-------+----+---+----+---+----+---+
| 2. Service Group        | DCS | 80.00 | 2  | 1 | 2  | 2 | 2  | 1 |
|                         |     |       | 83 | 9 | 72 | 0 | 18 | 6 |
|                         |     |       |    | . |    | . |    | . |
|                         |     |       |    | 7 |    | 6 |    | 7 |
+-------------------------+-----+-------+----+---+----+---+----+---+
| Total IT                |     |       | 1  | 1 | 1  | 8 | 1  | 7 |
| Product/Service Group   |     |       | ,4 | 0 | ,1 | 9 | ,0 | 7 |
| Revenue                 |     |       | 40 | 0 | 79 | . | 20 | . |
|                         |     |       |    | . |    | 3 |    | 9 |
|                         |     |       |    | 0 |    |   |    |   |
+-------------------------+-----+-------+----+---+----+---+----+---+
| Home Electrical         | P   | -     | -  | - | 49 | 3 | 2  | 1 |
| Appliance Manufacturing | CE* |       |    |   |    | . | 28 | 7 |
| Group                   |     |       |    |   |    | 7 |    | . |
|                         |     |       |    |   |    |   |    | 4 |
+-------------------------+-----+-------+----+---+----+---+----+---+
| Distribution of Home    | P   | -     | -  | - | 93 | 7 | 62 | 4 |
| and Business Electrical | HA* |       |    |   |    | . |    | . |
| Appliance Group         |     |       |    |   |    | 0 |    | 7 |
+-------------------------+-----+-------+----+---+----+---+----+---+
| Total Revenues          |     |       | 1  | 1 | 1  | 1 | 1  | 1 |
|                         |     |       | ,4 | 0 | ,3 | 0 | ,3 | 0 |
|                         |     |       | 40 | 0 | 21 | 0 | 10 | 0 |
|                         |     |       |    | . |    | . |    | . |
|                         |     |       |    | 0 |    | 0 |    | 0 |
+-------------------------+-----+-------+----+---+----+---+----+---+

Notes: 1) DCS = Datapro Computer Systems Co., Ltd.

2)  * The Company sold its investment capital on 1 December 2005. As a
    result, PCE and PHA are no longer the Company’s subsidiaries.

  - PCE = Premier CE Co., Ltd.

- PHA = Premier Home Appliance Co., Ltd.

2.4 Targets for Business Operations

The Company’s revenue in 2006 increased 9 percent over that of 2005.
This was consistent with the overall growth of the Information
Technology market and IT products and services increased by 22 percent.

In line with the growth of the Thai IT market, the Company has set a
target of 15 percent growth over 2006 results for its 2007 revenue.

The Company will still continue to invest in the Total Solution IT
Business and other related businesses which have high potential. This
will help to strengthen its revenue and promote steady growth.