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 o |
|     216194-7    | 200 sq.  | utright |           | verdrafts and  |
|                 | wah      | owner   | 1         | bank guarantee |
| Soi Sukhumvit   |          |         | 5,548,419 |                |
| 105 (Lasalle    | 4,097    | O       |           | Mortgaged as   |
| 56) Sukhumvit   | sq. wah  | utright |           | security for   |
| Road, Bangna    |          | owner   |           | overdrafts and |
| District,       |          |         |           | bank guarantee |
| Bangna          |          |         |           |                |
| Sub-district    |          |         |           |                |
| Bangkok 10260   |          |         |           |                |
|                 |          |         |           |                |
| 2)  2. Office   |          |         |           |                |
|     Building    |          |         |           |                |
|                 |          |         |           |                |
| 39/4 Moo 9, Soi |          |         |           |                |
| Sukhumvit 105   |          |         |           |                |
| (Lasalle 56)    |          |         |           |                |
| Sukhumvit Road, |          |         |           |                |
| Bangna          |          |         |           |                |
| District,       |          |         |           |                |
| Bangna          |          |         |           |                |
| Sub-district    |          |         |           |                |
| Bangkok 10260   |          |         |           |                |
+-----------------+----------+---------+-----------+----------------+

Details of other assets

+--------------+------------+----------+------------+-----------------+
| Assets       | Type of    | Net book | En         |                 |
|              | ownership  | value as | cumbrances |                 |
|              |            | of 31    |            |                 |
|              |            | Oct 2005 |            |                 |
|              |            |          |            |                 |
|              |            | (Baht)   |            |                 |
+--------------+------------+----------+------------+-----------------+
| Vehicles     | Outright   | 297,210  | -None-     |                 |
|              | owner      |          |            |                 |
+--------------+------------+----------+------------+-----------------+
| Vehicles     | On hire    | 6        | 1,630,675  | Vehicles under  |
|              | purchase   | ,838,562 | Baht       | Hire Purchase   |
|              |            |          |            | from SICCO      |
|              |            |          | 4,650,970  |                 |
|              |            |          | Baht       | TISCO Leasing   |
|              |            |          |            | Co., Ltd.       |
|              |            |          | 254,746    |                 |
|              |            |          | Baht       | GE Capital Auto |
|              |            |          |            | Leasing Plc.    |
+--------------+------------+----------+------------+-----------------+
| Office       | Outright   | 2        | -None-     |                 |
| Equipment    | owner      | ,214,153 |            |                 |
+--------------+------------+----------+------------+-----------------+
| Office       | On hire    | 335,623  | 234,510    | SCB Leasing     |
| Equipment    | purchase   |          | Baht       | Plc.            |
+--------------+------------+----------+------------+-----------------+
| Computer     | Outright   | 3        | -None-     |                 |
|              | owner      | ,689,255 |            |                 |
+--------------+------------+----------+------------+-----------------+
| Equipment    | Outright   | 2        | -None-     |                 |
| and          | owner      | ,011,045 |            |                 |
| machinery    |            |          |            |                 |
+--------------+------------+----------+------------+-----------------+
| Office decor | Outright   | 1        | -None-     |                 |
|              | owner      | ,956,483 |            |                 |
+--------------+------------+----------+------------+-----------------+
| Operating    | Outright   | 5        | -None-     |                 |
| accessories  | owner      | ,917,707 |            |                 |
+--------------+------------+----------+------------+-----------------+

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.

Details on the company’s concession, investment in subsidiaries and
joint ventures are listed in 3.1 under “Products and Services”

5.3 Investment Policy

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

Pico invested in PX System Co., Ltd. and Multi Design Co., Ltd. in 1995
and Artcom Graphic Co., Ltd. in 1996 and Inkjet Images Co., Ltd. in
2002. These investments permit Pico to offer a complete 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.