7. Capital Structure

  7.1 Shareholders’ Equity

(Unit : Baht)

+----------------------------------+----------+-----------+----------+---+
|                                  | 2009     | 2008      | 2007     |   |
+----------------------------------+----------+-----------+----------+---+
| Registered share capital :       | 328,345, | 328,345   | 328,345, |   |
|                                  | 090.00** | ,090.00** | 090.00** |   |
+----------------------------------+----------+-----------+----------+---+
| Par value                        | 1.00     | 1.00      | 1.00     |   |
+----------------------------------+----------+-----------+----------+---+
| Paid-up share capital :          |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| paid-up share capital at the     | 323,92   | 323,7     | 332,89   |   |
| beginning of the period          | 1,130.00 | 65,330.00 | 4,970.00 |   |
+----------------------------------+----------+-----------+----------+---+
| shares purchase by exercising    | -        | 1         | 10,65    |   |
| warrants of director             |          | 55,800.00 | 3,960.00 |   |
|                                  |          |           |          |   |
| and employees                    |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| shares purchase by exercising    | -        | -         | -        |   |
| warrants of                      |          |           |          |   |
|                                  |          |           |          |   |
| shareholders                     |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| write-off treasury stock         | -        | -         | (        |   |
|                                  |          |           | 19,783,6 |   |
|                                  |          |           | 00.00)** |   |
+----------------------------------+----------+-----------+----------+---+
| paid-up share capital at the end | 323,92   | 323,9     | 323,76   |   |
| of the period                    | 1,130.00 | 21,130.00 | 5,330.00 |   |
+----------------------------------+----------+-----------+----------+---+
| Premiums on share capital :      |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| premiums on share capital at the | 149,42   | 149,4     | 149,42   |   |
| beginning of                     | 0,557.75 | 20,557.75 | 0,557.75 |   |
|                                  |          |           |          |   |
| the period                       |          |           |          |   |
+----------------------------------+----------+-----------+----------+---+
| shares purchase by exercising    | -        | -         | -        |   |
| warrants of                      |          |           |          |   |
|                                  |          |           |          |   |
| 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 (unit)       |          | 4,126,950 | 296,880  |   |
+----------------------------------+----------+-----------+----------+---+

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 for the directors and employees 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.

7.2 Shareholder Information

(a) The list of the top 10 shareholders according to article 258,
Securities Exchange Commission Act (B.E. 2535), as of December 2, 2009.
(latest share register closed date) as follows:

+-------+----------------------------------------+----------+---------+
| No.   | Shareholders                           | Number   | % of    |
|       |                                        | of       |         |
|       |                                        | Shares   | Paid-up |
|       |                                        |          | Capital |
+-------+----------------------------------------+----------+---------+
| 1     | KBL EUROPEAN PRIVATE BANKERS S.A.      | 50       | 15.44   |
|       |                                        | ,000,000 |         |
+-------+----------------------------------------+----------+---------+
| 2     | GMM Grammy Public Company Limited      | 42       | 13.10   |
|       |                                        | ,422,200 |         |
+-------+----------------------------------------+----------+---------+
| 3     | Mr. Rit Thirakomen                     | 23       | 7.10    |
|       |                                        | ,008,782 |         |
+-------+----------------------------------------+----------+---------+
| 4     | Asst. prof. Yuen Poovarawan            | 13       | 4.07    |
|       |                                        | ,174,940 |         |
+-------+----------------------------------------+----------+---------+
| 5     | Mr. Pongsak Sivapatrakumpol            | 10       | 3.35    |
|       |                                        | ,850,842 |         |
+-------+----------------------------------------+----------+---------+
| 6     | Bangkok Assurance Public Company       | 10       | 3.32    |
|       | Limited                                | ,764,500 |         |
+-------+----------------------------------------+----------+---------+
| 7     | Mr. Thanong Chotisorayuth              | 9        | 3.04    |
|       |                                        | ,849,742 |         |
+-------+----------------------------------------+----------+---------+
| 8     | Mr. Phairat Sittakul                   | 6        | 2.06    |
|       |                                        | ,675,166 |         |
+-------+----------------------------------------+----------+---------+
| 9     | Mr. Wattana Chiengkul                  | 5        | 1.61    |
|       |                                        | ,216,992 |         |
+-------+----------------------------------------+----------+---------+
| 10    | Open long-term fund shares dividend    | 5        | 1.76    |
|       | Ayutthaya                              | ,706,000 |         |
+-------+----------------------------------------+----------+---------+
| Total |                                        | 178      | 54.85   |
|       |                                        | ,219,664 |         |
+-------+----------------------------------------+----------+---------+

Remark: - The issued and paid–up capital, as of December 2, 2009, is
equal to THB 323,921,130.

-   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 Ltd. of
1,641,750 shares or 0.51% of the paid up capital as of December 2, 2009,
by the details of first 10 shareholders whose shares are held through
Thai-NVDR Ltd., as follows:

+-------+---------------------------------------+-----------+---------+
| No.   | Shareholders                          | Number of | % of    |
|       |                                       | Shares    |         |
|       |                                       |           | Paid-up |
|       |                                       |           | Capital |
+-------+---------------------------------------+-----------+---------+
| 1     | MR. KUCKENBECKER, FRED JAMES          | 400,500   | 24.39   |
+-------+---------------------------------------+-----------+---------+
| 2     | KIM ENG SECURITIES PTE. LTD.          | 260,000   | 16.51   |
+-------+---------------------------------------+-----------+---------+
| 3     | MR. ADAM REUTERSKIOLD ARNBACK         | 146,900   | 8.95    |
+-------+---------------------------------------+-----------+---------+
| 4     | PHILLIP SECURITIES PTE LTD.           | 82,900    | 5.05    |
+-------+---------------------------------------+-----------+---------+
| 5     | MR. YANG, KO-LI                       | 80,000    | 4.87    |
+-------+---------------------------------------+-----------+---------+
| 6     | MR. SAMUEL E. WALLER                  | 80,000    | 4.87    |
+-------+---------------------------------------+-----------+---------+
| 7     | NOMURA SINGAPORE LIMITED-CUSTOMER     | 73,000    | 4.45    |
|       | SEGREGATED ACCOUNT                    |           |         |
+-------+---------------------------------------+-----------+---------+
| 8     | DR. HANS ULRICH LUTHER                | 65,000    | 3.96    |
+-------+---------------------------------------+-----------+---------+
| No.   | Shareholders                          | Number of | % of    |
|       |                                       | Shares    |         |
|       |                                       |           | Paid-up |
|       |                                       |           | Capital |
+-------+---------------------------------------+-----------+---------+
| 9     | Ms. INKAWAN MILLER-STERLING           | 50,000    | 3.05    |
+-------+---------------------------------------+-----------+---------+
| 10    | MR. KATSUMI SATA                      | 50,000    | 3.05    |
+-------+---------------------------------------+-----------+---------+
| Re    |                                       |           |         |
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| w.set |                                       |           |         |
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| h/set |                                       |           |         |
| /nvdr |                                       |           |         |
| /nvdr |                                       |           |         |
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| l=SE- |                                       |           |         |
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| e=en& |                                       |           |         |
| count |                                       |           |         |
| ry=US |                                       |           |         |
+-------+---------------------------------------+-----------+---------+

  Distribution of Shares

Distribution of shareholding as on December 2, 2009 (Book closing date
of the last registration).

  -------------- -------------- ------------- ------- ------------ ------------- ------- -------- ------------- --------
  Item           Share                                                                   Total                  
                 Distribution                                                                                   

                 Individual                           Juristic                                                  
                                                      individual                                                

                 Number         Shares        %       Number       Shares        %       Number   Shares        %

  Thai           2,794          199,920,104   61.72   31           67,620,056    20.87   2,825    267,540,160   82.59
  shareholders                                                                                                  

  Foreign        11             1,265,770     0.39    10           55,115,200    17.02   21       56,380,970    17.41
  shareholders                                                                                                  

  Total          2,805          201,185,874   62.11   41           122,735,256   37.89   2,846    323,921,130   100.00
  -------------- -------------- ------------- ------- ------------ ------------- ------- -------- ------------- --------

At the last registration date, there were 2,825 Thai national
shareholders totaling 267,540,160 shares (82.59%) which consist of 31
juristic persons and 2,794 individual shareholders, 21 foreign
shareholder, totaling 56,380,970 shares (17.41%), which consisted of 10
juristic persons and 11 individual shareholders.

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

(c) The actual share holder of KBL EUROPEAN PRIVATE BANKERS S.A. is Mr.
Edward Phillip Burke, a British citizen.

7.3 Dividend Payment Policy

The Company declared a policy to pay dividend no less than 50% of the
net profit after the deduction of the corporate income tax based on
financial statement it which the equity method is applies to investment,
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.

However, from the Board of Directors meeting of SE-EDUCATION Public
Co.,Ltd. 1/2010, dated 24 February 2010, it has approved to change the
dividend payment policy. As the company has the consolidated financial
statement effective on the fourth quarter of 2009 onward. The Company
has the dividend payment policy of no less than 50% of the net profit
after the corporate tax of separate financial statement.

The dividend payments for lasted 3 years are as follow :

+-------------------------+--------+----------+---------+-------------+
| Dividend payment from   | Di     | Dividend | Net     | Dividend    |
|                         | vidend |          | profit  | payout      |
| operations results      | p      | Per      |         | ratio       |
|                         | ayment | share    | (T      |             |
|                         | date   | (Baht)   | housand |             |
|                         |        |          | Baht)   |             |
+-------------------------+--------+----------+---------+-------------+
| Year 2009 :             |        |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 1             | 9/0    | 0.10     | 50,665  | 63.93       |
|                         | 6/2009 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 2             | 11/0   | 0.10     | 57,165  | 56.66       |
|                         | 9/2009 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 3             | 11/1   | 0.10     | 40,203  | 80.57       |
|                         | 2/2009 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 4             | 27/0   | 0.36*    | 68,538  | 170.14      |
|                         | 5/2010 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| Total for 2009          |        | 0.66     | 216,571 | 98.71       |
+-------------------------+--------+----------+---------+-------------+
| Year 2008 :             |        |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 1             | 6/0    | 0.10     | 52,985  | 61.13       |
|                         | 6/2008 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 2             | 5/0    | 0.10     | 56,842  | 56.99       |
|                         | 9/2008 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 3             | 11/1   | 0.10     | 46,610  | 69.50       |
|                         | 2/2008 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 4             | 28/0   | 0.29     | 38,195  | 245.94      |
|                         | 5/2009 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| Total for 2008          |        | 0.59     | 194,632 | 98.19       |
+-------------------------+--------+----------+---------+-------------+
| Year 2007 :             |        |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 1             | 8/0    | 0.10     | 32,691  | 98.98       |
|                         | 6/2007 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 2             | 6/0    | 0.10     | 36,178  | 89.48       |
|                         | 9/2007 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 3             | 11/1   | 0.10     | 60,387  | 53.61       |
|                         | 2/2007 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| - Quarter 4             | 28/0   | 0.26     | 54,544  | 154.41      |
|                         | 5/2008 |          |         |             |
+-------------------------+--------+----------+---------+-------------+
| Total for 2007          |        | 0.56     | 183,800 | 98.65       |
+-------------------------+--------+----------+---------+-------------+
| Note : * Rate of        |        |          |         |             |
| dividend per share      |        |          |         |             |
| which is paid from net  |        |          |         |             |
| profit after corporate  |        |          |         |             |
| tax in the financial    |        |          |         |             |
| statement for           |        |          |         |             |
| individual company is   |        |          |         |             |
| proposed by the board   |        |          |         |             |
| of directors, where by  |        |          |         |             |
| such rate will be       |        |          |         |             |
| decided at the annual   |        |          |         |             |
| general shareholder’s   |        |          |         |             |
| meeting on April 29,    |        |          |         |             |
| 2010, and the rate is   |        |          |         |             |
| calculated from common  |        |          |         |             |
| shares stated on        |        |          |         |             |
| December 2, 2009.       |        |          |         |             |
+-------------------------+--------+----------+---------+-------------+