4.  Research and Development

The company realizes of the important the related self development in
order to serve the consumer demand and able to cope with the competition
in the future, which, then, should result in the improvement of
performance by testing new ideas, developing working tools, working
system, measurement and assessment including continuous improvement as
listed below:

1. Improvement of Information Technology Infrastructure: The Company has
consistently invested in developing computer system both in hardware and
software for the whole organization, particularly since the middle of
2000, to reduce the process and increase speediness in communication
between work units, and between related staffs. Moreover, since the
middle of 2002, the Company has purchased the whole new information
system by appointing Deloitte de Touche Tohmatsu Jaiyos Co., Ltd. as
software developer and installer, and also plan the design and
installation of branch communication system at the Company’s
headquarters which allows further effective work improvement to occur.
The installation has been made since early 2003 and has undergone
software development that allows the software to adapt Company, until
the system can be widely used for the whole organization in end of the
year 2006.

  As the Company obtains the right information system with precision and
  rapidity, all executives can make use of this information to search
  for products and services that are in line with customer’s demand at
  the soonest possible, and also enable all data to be used to improve
  the work at the highest effect, by which all work process is worth,
  resulting in highest value added for all interest groups right from
  customers, staffs, shareholders, and society at large.

2.  Improvement of Management system and Human Resources: The company
    has developed in-house training courses for many levels to help
    employees enjoy working, while maintaining better working outcome.

  Moreover, the company has also reviewed and reformed the whole working
  process to improve quality in service and employee’s participation, by
  using new management tool ‘balanced scorecard’ which help to connect
  work system and indices tools that lead to the excellence in each
  business process that is vital to the survival, growth, competition,
  and service that create customer and partner’s impression. This plan
  will be ensured that the company maintains its leadership in book
  business in continuous mode in long term.

3.  Products: The Company has developed, studied, and found new media,
    including the product groups that have new innovative technology, or
    products that would be fit to the customers’ demand in globalization
    world.

4.  Chain Expansion and various sales areas development: The Company has
    studied and tested the possibility of opening the store branches in
    different pattern by using the several products mix that is
    interesting and attractive, in different locations that are
    convenient to support the pick-up point service and payment service
    in the future. This includes the continuous development of new sales
    areas, in cooperation with business alliance who are the space and
    product owners. Moreover, the Company seeks to re-invent the store’s
    outlook to maintain its colorful modern look which is in line with
    the customer’s needs, while facilitate the customers as much as
    possible, by stimulating book market both in Bangkok and other
    provinces.

5.  Communication with target customers and internet system: Since 1999,
    the Company has set up specific work division to develop website
    www.se-ed.com and offered free email service, free hosting by the
    name of se-ed.net. This is to permit the future tools in
    communication with the target customers, the customers based
    expansion, new added service, sales system support, and several
    other services in the future through the internet and intranet.
    Currently, it is under the development of related work. In addition,
    since 2001, the Company produced a television program named Book
    Variety which is on air via TTV 1 Nation Channel, which is regarded
    as another communication channel with target customers.

  In late 2005, the Company initiated and developed marketing
  communication system by the name ‘SE-ED Channel’ as a way to introduce
  products and services and other sales campaign through LCD monitors
  which will be installed in the store branches in the middle of 2007,
  allowing customers to learn variety of products and promotional
  activities in each period.