12. Operating Results and Financial Standing

1) Summary of auditor’s opinion

The past unqualified opinion of the auditor for the 5 years between 2001
to 2005 confirms that the company’s financial statements, operating
results and accompanying cash flows conform materially to the generally
accepted accounting principles.

+------+-------------+----------------------------+----------+--------+
| Fi   | Certified   | Auditor’s Office           | Regi     | Aud    |
| scal | Public      |                            | stration | itor’s |
| Year | Accountant  |                            | No.      | o      |
|      |             |                            |          | pinion |
|      | (Thailand)  |                            |          |        |
+------+-------------+----------------------------+----------+--------+
| 2005 | Somporn     | Deloitte touché Tohmatsu   | 3709     | Unqua  |
|      | Dulyavit    | Jaiyos Co., Ltd.           |          | lified |
+------+-------------+----------------------------+----------+--------+
| 2004 | Somporn     | Deloitte touché Tohmatsu   | 3709     | Unqua  |
|      | Dulyavit    | Jaiyos Co. Ltd.            |          | lified |
+------+-------------+----------------------------+----------+--------+
| 2003 | Somporn     | Deloitte touché Tohmatsu   | 3709     | Unqua  |
|      | Dulyavit    | Jaiyos Co. Ltd.            |          | lified |
+------+-------------+----------------------------+----------+--------+
| 2002 | Somporn     | Deloitte touché Tohmatsu   | 3709     | Unqua  |
|      | Dulyavit    | Jaiyos Co., Ltd.           |          | lified |
+------+-------------+----------------------------+----------+--------+
| 2001 | Somporn     | Deloitte touché Tohmatsu   | 3709     | Unqua  |
|      | Dulyavit    | Jaiyos Co., Ltd.           |          | lified |
+------+-------------+----------------------------+----------+--------+

  2) Summary of operating results and financial standing

Summary of Pico’s operating results and financial condition for 2003 to
2005 are as follows:

  Thousand Baht

+-------------------------+-----+------+------+------+------+------+
|                         | Con |      |      | Com  |      |      |
|                         | sol |      |      | pany |      |      |
|                         | ida |      |      |      |      |      |
|                         | ted |      |      |      |      |      |
+-------------------------+-----+------+------+------+------+------+
|                         | 2   | 2004 | 2003 | 2005 | 2004 | 2003 |
|                         | 005 |      |      |      |      |      |
+-------------------------+-----+------+------+------+------+------+
| Total Revenue           | 7   | 642  | 449  | 626  | 559  | 388  |
|                         | 20, | ,003 | ,337 | ,313 | ,861 | ,232 |
|                         | 220 |      |      |      |      |      |
+-------------------------+-----+------+------+------+------+------+
| Total Expenses          | 6   | 578  | 401  | 575  | 503  | 344  |
|                         | 62, | ,015 | ,250 | ,901 | ,089 | ,670 |
|                         | 664 |      |      |      |      |      |
+-------------------------+-----+------+------+------+------+------+
| Net Income              | 41, | 41   | 30   | 41   | 41   | 30   |
|                         | 702 | ,167 | ,142 | ,702 | ,167 | ,142 |
+-------------------------+-----+------+------+------+------+------+
| Earnings per share      | 0   | 0.39 | 0.89 | 0.36 | 0.39 | 0.89 |
|                         | .36 |      |      |      |      |      |
| Weighted average no. of |     | 102  | 33   | 114  | 102  | 33   |
| ordinary share          | 1   | ,652 | ,741 | ,670 | ,652 | ,741 |
|                         | 14, |      |      |      |      |      |
| (Thousand shares)       | 670 |      |      |      |      |      |
+-------------------------+-----+------+------+------+------+------+
| Total Assets            | 4   | 369  | 235  | 391  | 337  | 214  |
|                         | 29, | ,983 | ,154 | ,816 | ,191 | ,274 |
|                         | 237 |      |      |      |      |      |
+-------------------------+-----+------+------+------+------+------+
| Total Liabilities       | 1   | 125  | 113  | 116  | 100  | 97   |
|                         | 44, | ,998 | ,206 | ,413 | ,534 | ,975 |
|                         | 869 |      |      |      |      |      |
+-------------------------+-----+------+------+------+------+------+
| Total company           | 2   | 243  | 121  | 275  | 236  | 116  |
| shareholder’s equity    | 84, | ,986 | ,948 | ,403 | ,657 | ,299 |
|                         | 368 |      |      |      |      |      |
+-------------------------+-----+------+------+------+------+------+
| Book value per share    | 2   | 2.38 | 3.61 | 2.40 | 2.31 | 3.45 |
| (Baht)                  | .48 |      |      |      |      |      |
+-------------------------+-----+------+------+------+------+------+
| No. of shares issued    | 1   | 65   | 15   | 115  | 65   | 15   |
| and outstanding as at   | 15, | ,000 | ,000 | ,000 | ,000 | ,000 |
| year end (Thousand      | 000 |      |      |      |      |      |
| shares)                 |     |      |      |      |      |      |
+-------------------------+-----+------+------+------+------+------+
|                         |     |      |      |      |      |      |
+-------------------------+-----+------+------+------+------+------+

  Remarks - Fiscal year of the company October 31

-   In 2005 there are 330,000 preferred shares and 114,669,980 common
      shares both at Baht 1 par value

-   The comparison of earning per share and book value per share 2004
      and 2005 based on weighted average of shares

    Pico (Thailand) Public Company Limited

Balance Sheets

As at October 31

Thousand Baht

[TABLE]

  Pico (Thailand) Public Company Limited

Balance Sheets (Continued)

As at October 31

Thousand Baht

+-------------------------+------+-----+-------+-------+-------+-----+
|                         | Cons |     |       | The   |       |     |
|                         | olid |     |       | co    |       |     |
|                         | ated |     |       | mpany |       |     |
|                         |      |     |       | only  |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|                         | 2005 | 2   | 2003  | 2005  | 2004  | 2   |
|                         |      | 004 |       |       |       | 003 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Liabilities and       |      |     |       |       |       |     |
|   Shareholder’s Equity  |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Current Liabilities   |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Trade accounts        |      |     |       |       |       |     |
|   payable               |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Related parties       | 1    | 1,  | 3,619 | 4,358 | 5,984 | 6,  |
|                         | ,727 | 344 |       |       |       | 765 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Others                | 80   | 68, | 4     | 6     | 5     | 40, |
|                         | ,817 | 093 | 8,693 | 4,246 | 2,523 | 803 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Total trade accounts  | 82   | 69, | 5     | 6     | 5     | 47, |
|   payables              | ,544 | 437 | 2,312 | 8,604 | 8,507 | 568 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Current portion of    | -    | -   | 3,571 | -     | -     | 3,  |
|   long term debt        |      |     |       |       |       | 571 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Current portion of    | 1    | 1,  | 2,049 | 1,831 | 1,731 | 1,  |
|   obligations under     | ,831 | 731 |       |       |       | 221 |
|   hire-purchase         |      |     |       |       |       |     |
|   agreement             |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Amount due to related | 4    | 7,  | 5,274 | 4,573 | 7,136 | 5,  |
|   parties               | ,536 | 142 |       |       |       | 274 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Other current         |      |     |       |       |       |     |
|   liabilities           |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Accrued expenses      | 24   | 23, | 2     | 1     | 1     | 16, |
|                         | ,626 | 143 | 0,209 | 7,328 | 8,105 | 833 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   The gross amount due  | 9    | 5,  | 4,680 | 5,455 | 1,905 | 672 |
|   to customers for      | ,144 | 696 |       |       |       |     |
|   contract work         |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Deposits received     | 644  | 32  | 238   | 644   | 32    | 238 |
|   from customers        |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Dividend payable      | -    | 1,  | -     | -     | -     | -   |
|                         |      | 307 |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Others                | 17   | 15, | 1     | 1     | 1     | 15, |
|                         | ,386 | 509 | 7,489 | 3,821 | 1,117 | 214 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Total Current         | 140  | 1   | 10    | 11    | 9     | 90, |
|   Liabilities           | ,711 | 23, | 5,822 | 2,255 | 8,533 | 591 |
|                         |      | 997 |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Non Current           |      |     |       |       |       |     |
|   Liabilities           |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Long term debt        | -    | -   | 6,250 | -     | -     | 6,  |
|                         |      |     |       |       |       | 250 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Obligations under     | 4    | 2,  | 1,134 | 4,158 | 2,001 | 1,  |
|   hire-purchase         | ,158 | 001 |       |       |       | 134 |
|   agreements            |      |     |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Total Non-current     | 4    | 2,  | 7,384 | 4,158 | 2,001 | 7,  |
|   Liabilities           | ,158 | 001 |       |       |       | 384 |
+-------------------------+------+-----+-------+-------+-------+-----+
|   Total liabilities     | 144  | 1   | 11    | 11    | 10    | 97, |
|                         | ,869 | 25, | 3,206 | 6,413 | 0,534 | 975 |
|                         |      | 998 |       |       |       |     |
+-------------------------+------+-----+-------+-------+-------+-----+

  Pico (Thailand) Public Company Limited

Balance Sheets (Continued)

As at October 31

Thousand Baht

+---------------------------------+-----+-----+-----+-----+-----+-----+
|                                 | Con |     |     | The |     |     |
|                                 | sol |     |     | c   |     |     |
|                                 | ida |     |     | omp |     |     |
|                                 | ted |     |     | any |     |     |
|                                 |     |     |     | o   |     |     |
|                                 |     |     |     | nly |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|                                 | 2   | 2   | 2   | 2   | 2   | 2   |
|                                 | 005 | 004 | 005 | 004 | 005 | 004 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Shareholders’ Equity          |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Share Capital                 |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   330,000 preferred shares of   | 330 | 330 | 330 | 330 | 330 | 330 |
|   Baht 1 each                   |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   146,700,000 ordinary shares   | -   | -   | 14, | -   | -   | 14, |
|   of Baht 1 each                |     |     | 670 |     |     | 670 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   50,000,000 ordinary shares of | -   | -   | 50, | -   | -   | 50, |
|   Baht 1 each                   |     |     | 000 |     |     | 000 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   64,670,000 ordinary shares of | -   | 64, | -   | -   | 64, | -   |
|   Baht 1 each                   |     | 670 |     |     | 670 |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   114,670,000 ordinary shares   | 1   | -   | -   | 1   | -   | -   |
|   of Baht 1 each                | 14, |     |     | 14, |     |     |
|                                 | 670 |     |     | 670 |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|                                 | 1   | 65, | 65, | 1   | 65, | 65, |
|                                 | 15, | 000 | 000 | 15, | 000 | 000 |
|                                 | 000 |     |     | 000 |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Issued and paid-up share      |     |     |     |     |     |     |
|   capital                       |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   330,000 preferred shares of   | 330 | 330 | 330 | 330 | 330 | 330 |
|   Baht1 each, fully paid        |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   14,670,000 ordinary shares of | -   | -   | 14, | -   | -   | 14, |
|   Baht 1 each, fully paid       |     |     | 670 |     |     | 670 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   64,670,000 ordinary shares of | -   | 64, | -   | -   | 64, | -   |
|   Baht 1 each, fully paid       |     | 670 |     |     | 670 |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   114,669,980 ordinary shares   | 1   | -   | -   | 1   | -   | -   |
|   of Baht 1 each, fully paid    | 14, |     |     | 14, |     |     |
|                                 | 670 |     |     | 670 |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|                                 | 1   | 65, | 15, | 1   | 65, | 15, |
|                                 | 15, | 000 | 000 | 15, | 000 | 000 |
|                                 | 000 |     |     | 000 |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
| Additional Paid-in Capital      |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
| Premium on ordinary shares, net | 1   | 1   | -   | 1   | 1   | -   |
|                                 | 01, | 01, |     | 01, | 01, |     |
|                                 | 250 | 250 |     | 250 | 250 |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Land Revaluation Surplus      | 27, | 9,  | 9,  | 27, | 9,  | 9,  |
|                                 | 917 | 217 | 217 | 917 | 217 | 217 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Retained Earnings             |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Appropriated                  | 7,  | 5,  | 3,  | 7,  | 5,  | 3,  |
|                                 | 150 | 065 | 007 | 150 | 066 | 007 |
|   Legal reserve                 |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Unappropriated                | 24, | 56, | 89, | 24, | 56, | 89, |
|                                 | 086 | 124 | 075 | 086 | 124 | 075 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Total company shareholders’   | 2   | 2   | 1   | 2   | 2   | 1   |
|   equity                        | 75, | 36, | 16, | 75, | 36, | 16, |
|                                 | 403 | 656 | 299 | 403 | 657 | 299 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Minority Interest             | 8,  | 7,  | 5,  | -   | -   | -   |
|                                 | 965 | 329 | 649 |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Total shareholders’ equity    | 2   | 2   | 1   | 2   | 2   | 1   |
|                                 | 84, | 43, | 21, | 75, | 36, | 16, |
|                                 | 368 | 985 | 948 | 403 | 657 | 299 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
|   Total Liabilities and         | 4   | 3   | 2   | 3   | 3   | 2   |
|   Shareholders’ Equity          | 29, | 69, | 35, | 91, | 37, | 14, |
|                                 | 237 | 983 | 154 | 816 | 191 | 274 |
+---------------------------------+-----+-----+-----+-----+-----+-----+

  Pico (Thailand) Public Company Limited

Statements of Income

For the years ended October 31

Thousand Baht

+-----------------------------+-----+-----+-----+-----+-----+-----+
|                             | Con |     |     | The |     |     |
|                             | sol |     |     | c   |     |     |
|                             | ida |     |     | omp |     |     |
|                             | ted |     |     | any |     |     |
|                             |     |     |     | o   |     |     |
|                             |     |     |     | nly |     |     |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|                             | 2   | 2   | 2   | 2   | 2   | 2   |
|                             | 005 | 004 | 003 | 005 | 004 | 003 |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Revenues                  |     |     |     |     |     |     |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Revenues from the         | 7   | 6   | 4   | 6   | 5   | 3   |
|   rendering of              | 16, | 39, | 47, | 11, | 47, | 80, |
|                             | 499 | 065 | 098 | 994 | 347 | 526 |
|   services                  |     |     |     |     |     |     |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Other income              | 3,  | 2,  | 1,  | 4,  | 4,  | 4,  |
|                             | 278 | 094 | 916 | 216 | 042 | 356 |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Share of profits from     | 443 | 844 | 324 | 10, | 8,  | 3,  |
|   investments               |     |     |     | 103 | 472 | 350 |
|                             |     |     |     |     |     |     |
|   using the equity method   |     |     |     |     |     |     |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Total revenues            | 7   | 6   | 4   | 6   | 5   | 3   |
|                             | 20, | 42, | 49, | 26, | 59, | 88, |
|                             | 220 | 003 | 338 | 313 | 861 | 232 |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Expenses                  |     |     |     |     |     |     |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Cost of the rendering of  | 5   | 4   | 3   | 4   | 4   | 2   |
|   services                  | 33, | 66, | 23, | 72, | 13, | 82, |
|                             | 995 | 926 | 149 | 309 | 384 | 526 |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Selling and               | 1   | 1   | 78, | 1   | 89, | 62, |
|   administrative expenses   | 28, | 11, | 101 | 03, | 705 | 143 |
|                             | 669 | 089 |     | 591 |     |     |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Total expenses            | 6   | 5   | 4   | 5   | 5   | 3   |
|                             | 62, | 78, | 01, | 75, | 03, | 44, |
|                             | 664 | 015 | 250 | 900 | 089 | 669 |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Income Before Interest    | 57, | 63, | 48, | 50, | 56, | 43, |
|   Expenses and Income Tax   | 556 | 988 | 088 | 413 | 772 | 563 |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Interest expenses         | (3  | (   | (   | (3  | (   | (   |
|                             | 18) | 1,6 | 1,6 | 18) | 1,6 | 1,4 |
|                             |     | 53) | 06) |     | 11) | 49) |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Income tax                | (1  | (1  | (1  | (   | (1  | (1  |
|                             | 2,8 | 7,9 | 4,7 | 8,3 | 3,9 | 1,9 |
|                             | 99) | 80) | 95) | 93) | 94) | 72) |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|                             |     |     |     |     |     |     |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Income After Income Tax   | 44, | 44, | 31, | 41, | 41, | 30, |
|                             | 339 | 355 | 687 | 702 | 167 | 142 |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Net Income of Minority    | (   | (   | (   | -   | -   | -   |
|   Interest                  | 2,6 | 3,1 | 1,5 |     |     |     |
|                             | 37) | 88) | 45) |     |     |     |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Net income                | 41, | 41, | 30, | 41, | 41, | 30, |
|                             | 702 | 167 | 142 | 702 | 167 | 142 |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Basic earnings per share  | 0   | 0   | 0   | 0   | 0   | 0   |
|                             | .36 | .39 | .89 | .36 | .39 | .89 |
+-----------------------------+-----+-----+-----+-----+-----+-----+
|   Weighted average number   | 1   | 1   | 33, | 1   | 1   | 33, |
|   of ordinary               | 15, | 02, | 741 | 15, | 02, | 741 |
|                             | 000 | 652 |     | 000 | 652 |     |
|   shares                    |     |     |     |     |     |     |
+-----------------------------+-----+-----+-----+-----+-----+-----+

  Pico (Thailand) Public Company Limited

Statements of Cash flows

For the years ended October 31

Thousand Baht

+---------------------------+------+-----+------+------+------+------+
|                           | Cons |     |      | The  |      |      |
|                           | olid |     |      | com  |      |      |
|                           | ated |     |      | pany |      |      |
|                           |      |     |      | only |      |      |
+---------------------------+------+-----+------+------+------+------+
|                           | 2005 | 2   | 2003 | 2005 | 2004 | 2003 |
|                           |      | 004 |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Cash flows from         |      |     |      |      |      |      |
|   operating activities    |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Net income              | 41   | 41, | 30   | 41   | 41   | 30   |
|                           | ,702 | 167 | ,142 | ,702 | ,167 | ,142 |
+---------------------------+------+-----+------+------+------+------+
|   Items to reconcile net  |      |     |      |      |      |      |
|   income to net cash      |      |     |      |      |      |      |
|   flows                   |      |     |      |      |      |      |
|                           |      |     |      |      |      |      |
|   from operating          |      |     |      |      |      |      |
|   activities:             |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|                           |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Depreciation and        | 11   | 11, | 9    | 6    | 5    | 4    |
|   amortization            | ,776 | 504 | ,710 | ,349 | ,975 | ,914 |
+---------------------------+------+-----+------+------+------+------+
|   Doubtful accounts and   | 1    | 1,  | 217  | 702  | 1    | -    |
|   bad debt                | ,406 | 969 |      |      | ,651 |      |
+---------------------------+------+-----+------+------+------+------+
|   (Gain) loss on sale of  | (1,  | 7   | (    | (    | (30) | (    |
|   fixed assets            | 020) |     | 647) | 263) |      | 543) |
+---------------------------+------+-----+------+------+------+------+
|   Loss on writing off of  | 310  | 32  | 994  | 288  | 5    | 502  |
|   fixed assets            |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Unrealized gain on      | -    | 1   | -    | -    | 1    | -    |
|   exchange rate           |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Loss on sales of        | (18) | (   | (48) | -    | (42) | (48) |
|   investment in trading   |      | 62) |      |      |      |      |
|   securities              |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Dividend received from  | 337  | 403 | 225  | 6    | 1    | 900  |
|   investments using the   |      |     |      | ,303 | ,932 |      |
|                           |      |     |      |      |      |      |
|   equity method           |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Share of profits from   | (    | (8  | (    | (10, | (8,  | (3,  |
|   investments using the   | 443) | 44) | 324) | 102) | 472) | 350) |
|                           |      |     |      |      |      |      |
|   equity method           |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Net income of minority  | 2    | 3,  | 1    | -    | -    | -    |
|   interest                | ,637 | 188 | ,545 |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Income from operations  | 56   | 57, | 41   | 44   | 42   | 32   |
|   before changes in       | ,687 | 365 | ,814 | ,979 | ,187 | ,517 |
|   operating assets and    |      |     |      |      |      |      |
|   liabilities             |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|                           |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Operating assets        |      |     |      |      |      |      |
|   (increase) decrease     |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Current investment –    | -    | -   | (    | -    | -    | (    |
|   investment in trading   |      |     | 127) |      |      | 127) |
|   security                |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Trade accounts          | (12, | (2  | (15, | (11, | (12, | (16, |
|   receivable              | 403) | 3,7 | 499) | 992) | 661) | 390) |
|                           |      | 41) |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Amounts due from        | 61   | 111 | (    | 5    | 1    | (1,  |
|   related parties         |      |     | 148) |      | ,583 | 016) |
+---------------------------+------+-----+------+------+------+------+
|   Inventories             | 285  | (1  | (    | 285  | (    | (    |
|                           |      | 55) | 123) |      | 155) | 123) |
+---------------------------+------+-----+------+------+------+------+
|   The gross amount due    | 13   | (4  | (17, | 16   | (48, | (14, |
|   from customers for      | ,982 | 5,9 | 193) | ,461 | 405) | 972) |
|                           |      | 70) |      |      |      |      |
|   contract work           |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Other current assets    | (6,  | (   | (1,  | (5,  | (3,  | (1,  |
|                           | 267) | 4,0 | 258) | 693) | 712) | 143) |
|                           |      | 22) |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Other non-current       | 519  | (   | 200  | 476  | (1,  | -    |
|   assets                  |      | 1,7 |      |      | 727) |      |
|                           |      | 34) |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Operating liabilities   |      |     |      |      |      |      |
|   increase (decrease)     |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Trade accounts payable  | 13   | 17, | 20   | 10   | 10   | 24   |
|                           | ,106 | 124 | ,989 | ,096 | ,939 | ,415 |
+---------------------------+------+-----+------+------+------+------+
|   Amounts due to related  | (2,  | 1,  | 1    | (2,  | 1    | 1    |
|   parties                 | 606) | 866 | ,958 | 563) | ,860 | ,958 |
+---------------------------+------+-----+------+------+------+------+
|   Accrued expenses        | 1    | 2,  | 5    | (    | 1    | 6    |
|                           | ,483 | 934 | ,965 | 778) | ,272 | ,096 |
+---------------------------+------+-----+------+------+------+------+
|   The gross amount due to | 3    | 1,  | 2    | 3    | 1    | (    |
|   customers for contract  | ,448 | 017 | ,921 | ,550 | ,233 | 812) |
|                           |      |     |      |      |      |      |
|   work                    |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Deposits received from  | 612  | (2  | (3,  | 612  | (    | (3,  |
|   customers               |      | 06) | 404) |      | 206) | 404) |
+---------------------------+------+-----+------+------+------+------+
|   Other payable           | -    | (   | 4    | -    | (4,  | 4    |
|                           |      | 4,6 | ,682 |      | 682) | ,682 |
|                           |      | 82) |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+
|   Other current           | 1    | 2,  | (4,  | 1    | 237  | (5,  |
|   liabilities             | ,171 | 499 | 402) | ,862 |      | 289) |
+---------------------------+------+-----+------+------+------+------+
|   Net cash provided by    | 70   | 2,  | 36   | 57   | (12, | 26   |
|   (used in) operating     | ,078 | 406 | ,375 | ,300 | 237) | ,392 |
|   activities              |      |     |      |      |      |      |
+---------------------------+------+-----+------+------+------+------+

  Pico (Thailand) Public Company Limited

Statements of Cash flows (Continued)

For the years ended October 31

Thousand Baht

+----------------------------+-----+-----+-----+-----+-----+-------+
|                            | Con |     |     | The |     |       |
|                            | sol |     |     | c   |     |       |
|                            | ida |     |     | omp |     |       |
|                            | ted |     |     | any |     |       |
|                            |     |     |     | o   |     |       |
|                            |     |     |     | nly |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|                            | 2   | 2   | 2   | 2   | 2   | 2003  |
|                            | 005 | 004 | 003 | 005 | 004 |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash flows from          |     |     |     |     |     |       |
|   investing activities     |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash received from       | 2,  | -   | 5,  | 2,  | -   | 5,000 |
|   deposit at bank used as  | 000 |     | 000 | 000 |     |       |
|   collateral               |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment from        | -   | (3  | -   | -   | -   | -     |
|   deposit at bank used as  |     | 10) |     |     |     |       |
|   collateral               |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for         | (1  | (   | (   | (   | (   | (4    |
|   purchases of fixed       | 0,6 | 7,1 | 6,3 | 7,8 | 1,5 | ,301) |
|                            | 45) | 41) | 26) | 72) | 09) |       |
|   assets                   |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for         | (3  | (   | -   | (3  | (   | -     |
|   purchase of              | 28) | 1,3 |     | 25) | 1,2 |       |
|                            |     | 55) |     |     | 44) |       |
|   software                 |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Purchase of investment   | (4  | (6  | -   | -   | (2  | -     |
|   in other                 | 50) | 10) |     |     | 50) |       |
|                            |     |     |     |     |     |       |
|   company                  |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash paid for fixed      | -   | -   | (   | -   |     | (3    |
|   assets                   |     |     | 3,9 |     |     | ,922) |
|                            |     |     | 22) |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash received from sale  | -   | 197 | -   | -   | 197 | -     |
|   of investment            |     |     |     |     |     |       |
|                            |     |     |     |     |     |       |
|   in trading security      |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Repayment from           | -   | -   | -   | 300 | 250 | -     |
|   short-term loan to a     |     |     |     |     |     |       |
|   related party            |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Repayment from           | -   | -   | 1,  | -   | -   | 1,700 |
|   short-term loans to      |     |     | 700 |     |     |       |
|   other companies          |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash received from sale  | 1,  | 97  | 1,  | 806 | 61  | 1,304 |
|   of fixed assets          | 992 |     | 515 |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash received from sale  | -   | 250 | -   | -   | 250 | -     |
|   of investment            |     |     |     |     |     |       |
|                            |     |     |     |     |     |       |
|   in other company         |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for         | -   | -   | -   | -   | (3  | -     |
|   short-term loan to a     |     |     |     |     | 00) |       |
|                            |     |     |     |     |     |       |
|   related company          |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Net cash used in         | (   | (   | (   | (   | (   | (219) |
|   investing activities     | 7,4 | 8,8 | 2,0 | 5,0 | 2,5 |       |
|                            | 31) | 72) | 33) | 91) | 45) |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash Flows from          |     |     | -   |     |     | -     |
|   Financing Activities     |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Bank overdrafts increase | -   | -   | (   | -   | -   | (14)  |
|   (decrease)               |     |     | 14) |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for loans   | -   | -   | (   | -   | -   | -     |
|   from directors           |     |     | 1,9 |     |     |       |
|                            |     |     | 00) |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash received from       | -   | 5,  | -   | -   | 5,  | -     |
|   long-term loan           |     | 000 |     |     | 000 |       |
|                            |     |     |     |     |     |       |
|   from financial           |     |     |     |     |     |       |
|   institution              |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Proceed from issuance of | -   | 1   | -   | -   | 1   | -     |
|   share capital            |     | 51, |     |     | 51, |       |
|                            |     | 250 |     |     | 250 |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for         | (   | (   | (   | (   | (   | (2    |
|   obligations under        | 1,7 | 3,7 | 3,6 | 1,7 | 2,9 | ,128) |
|                            | 93) | 30) | 83) | 93) | 02) |       |
|   hire-purchase agreements |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash payment for         | -   | (1  | (   | -   | (1  | (3    |
|   long-term loan           |     | 4,8 | 3,5 |     | 4,8 | ,571) |
|                            |     | 21) | 71) |     | 21) |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Dividends paid           | (2  | (7  | (   | (2  | (7  | (5    |
|                            | 1,6 | 2,0 | 5,0 | 1,6 | 2,0 | ,000) |
|                            | 55) | 60) | 00) | 55) | 60) |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Dividends of subsidiary  | (   | (2  | (1  | -   | -   | -     |
|   paid to                  | 2,3 | 01) | 01) |     |     |       |
|                            | 07) |     |     |     |     |       |
|   minority shareholders    |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Net cash provided by     | (2  | 65, | (1  | (2  | 66, | (10   |
|   (used in) financing      | 5,7 | 438 | 4,2 | 3,4 | 467 | ,713) |
|   activities               | 55) |     | 69) | 48) |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Net increase in cash and | 36, | 58, | 20, | 28, | 51, | 1     |
|   cash equivalents         | 892 | 973 | 073 | 761 | 685 | 5,460 |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash and cash            | 95, | 36, | 16, | 74, | 22, | 7,346 |
|   equivalents balance as   | 243 | 271 | 198 | 491 | 806 |       |
|   at beginning             |     |     |     |     |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+
|   Cash and cash            | 1   | 95, | 36, | 1   | 74, | 2     |
|   equivalents balance as   | 32, | 243 | 271 | 03, | 491 | 2,806 |
|   at ending                | 135 |     |     | 252 |     |       |
+----------------------------+-----+-----+-----+-----+-----+-------+

Comparative financial Ratios 2003-2005

Financial ratios

+---------------------------+-------+------+-----+------+-----+-----+
|                           | Co    |      |     | The  |     |     |
|                           | nsoli |      |     | com  |     |     |
|                           | dated |      |     | pany |     |     |
|                           |       |      |     | only |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|                           | 2005  | 2004 | 2   | 2005 | 2   | 2   |
|                           |       |      | 003 |      | 004 | 003 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Liquidity Ratios        |       |      |     |      |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Current ratio (time)    | 2.39  | 2.39 | 1   | 2.52 | 2   | 1   |
|                           |       |      | .57 |      | .61 | .56 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Quick ratio (time)      | 1.72  | 1.57 | 1   | 1.74 | 1   | 1   |
|                           |       |      | .08 |      | .58 | .01 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Cash current ratio      | 0.53  | 0.02 | 0   | 0.54 | -0  | 0   |
|   (time)                  |       |      | .38 |      | .13 | .33 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Trade payables turnover | 6.65  | 7.22 | 6   | 7.03 | 7   | 6   |
|   (time)                  |       |      | .39 |      | .37 | .28 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Receivables turnover    | 54.16 | 51   | 57  | 51   | 49  | 58  |
|   (days)                  |       |      |     |      |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Profitability Ratios    |       |      |     |      |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Gross operating profit  | 2     | 26   | 27. | 22   | 24. | 25. |
|   (%)                     | 5.47% | .94% | 72% | .82% | 47% | 75% |
+---------------------------+-------+------+-----+------+-----+-----+
|   Operating profit (%)    | 8.03% | 10   | 10. | 8    | 10. | 11. |
|                           |       | .01% | 75% | .24% | 37% | 45% |
+---------------------------+-------+------+-----+------+-----+-----+
|   Net profit (%)          | 5.82% | 6    | 6.  | 6    | 7.  | 7.  |
|                           |       | .44% | 74% | .81% | 52% | 92% |
+---------------------------+-------+------+-----+------+-----+-----+
|   Net Return on           | 1     | 22   | 28. | 16   | 23. | 29. |
|   shareholders’ equity,   | 5.79% | .50% | 39% | .29% | 33% | 77% |
|                           |       |      |     |      |     |     |
|   (ROE) (%)               |       |      |     |      |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Operating Efficiency    |       |      |     |      |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Return on Assets (%)    | 1     | 13   | 14. | 11   | 14. | 15. |
|                           | 0.44% | .61% | 27% | .44% | 93% | 82% |
+---------------------------+-------+------+-----+------+-----+-----+
|   Return on Fixed Assets  | 5     | 67   | 47. | 68   | 85. | 61. |
|   (%)                     | 7.94% | .04% | 04% | .84% | 17% | 63% |
+---------------------------+-------+------+-----+------+-----+-----+
|   Assets Turnover (time)  | 1.80  | 2.12 | 2   | 1.71 | 2   | 2   |
|                           |       |      | .13 |      | .03 | .04 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Key Financial           |       |      |     |      |     |     |
|   Indicators              |       |      |     |      |     |     |
+---------------------------+-------+------+-----+------+-----+-----+
|   Leverage (Debt to       | 0.51  | 0.52 | 0   | 0.42 | 0   | 0   |
|   Equity) (time)          |       |      | .93 |      | .42 | .84 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Interest Coverage       | 2     | 3    | 29  | 20   | 35  | 30  |
|   (time)                  | 62.16 | 8.70 | .95 | 7.58 | .26 | .07 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Book Value per share    | 2.48  | 2.38 | 3   | 2.40 | 2   | 3   |
|   (Baht)                  |       |      | .61 |      | .31 | .45 |
+---------------------------+-------+------+-----+------+-----+-----+
|   Earning per share (EPS) | 0.36  | 0.39 | 0   | 0.36 | 0   | 0   |
|   (Baht)                  |       |      | .89 |      | .39 | .89 |
+---------------------------+-------+------+-----+------+-----+-----+

3) Explanation

-   Operating Results

A slight decline in the turnover growth rate for 2005 is due principally
to the sudden and continued oil price rises. The resultant inflationary
trend was compounded by the bird flu scare and the unsolved southern
unrest causing consumers to withhold their spending and advertisers to
review their budget. However, we were successful in raising our total
revenue by 12.2% to Baht 720.2 million with a net income after taxes of
Baht 41.7 million or an increase of 1.3% over that of 2004.

-   Income from services rendered

Income from services rendered amounted to Baht 716 million or an
increase of 12% over the previous year. With the exception of the third
quarter we recorded a steady expansion in all business segments. The oil
“shock” effect was sudden and affected the entire industry during the
seasonally low season in the third quarter. Breakdown of our revenue by
segments is as follows:

1)  Event marketing activities Baht 254 million, an 18% increase.

2)  Trade exhibition business Baht 250 million, an 11% decline.

3)  Museum exhibition Baht 103 million, a 73% increase.

4)  Others, such as the erection of large air-conditioned tents,
    billboards and interior design Baht 110 million, a 31% increase.

Income for services rendered to most business segments continued on the
upward trend .The government’s big ticket museum display especially
registered a substantial increase in line with our marketing thrust for
this business segment which will become a consistent and non seasonal
revenue source. Income from trade exhibition recorded a slight decline
due to the abrupt cancellations of several projects as after effect of
the “oil shock”.

-   Gross Profit Margin

Our gross profit margin is normally at 15 – 35% of revenues from the
services rendered depending on the business segment. Complexity of work,
client’s budget size and the intensity of competition in the securing of
the contract are factors that determine the gross profit margin. Our
gross profit margin decline in 2005 is due primarily to the increased
costs related to the oil price rises that we were not able to pass on to
customers under fixed price contracts.

-   Selling, General and Administration Expenses

This expense increased by 16% to Baht 129 million as we substantially
invested in our human resources and improvement to our organizational
structure and operating system to accommodate expected future growth and
diversification into other related areas.

-   Net Income

Based on the foregoings our consolidated net income increased nominally
to Baht 41.7 million.

-   Financial Standing

Our consolidated assets stood at Baht 429 million with 78% in current
assets and 22% non current assets.

Our land and buildings were revalued as per periodic requirement in 2005
and resulted in a Baht 19 million increase in value. This increase
translated directly to our net worth resulting in an improved capital
fund.

-   Net Worth

With the increase in net worth as described above to Baht 284 million.
Total liabilities, consisting mostly of short term trade obligations,
our respectable debt to equity of 0.5 was maintained as of fiscal year
end.

-   Liquidity and internal cash generation

Our internal cash generation continued to be strong despite the
increased turnover. The operating needs from increased receivables
extension was adequately matched by the lengthening of trade payables.
The internal operation generated cash was adequate to cover the office
renovation and improvement in information technology and dividend
payment with no outside borrowing needed. The operation continues to
remain debt free.

As at fiscal year end our liquid assets of Baht 132 million was in the
form of Baht 56 million in cash and cash equivalents, and Baht 76million
investments in short term government bonds, Bank of Thailand’s bonds and
certificate of deposits at finance companies.

We recognize the need for a strong working capital in business
expansion. For 2005 we were able to maintain our current position at 2.4
which will put us in a strong financial position and a leverage in our
business conduct as we pursue new businesses.

-   Contingent obligations

As at October 31, 2005 the contingent obligations stood at Baht 47
million an increase of Baht 24 million. This is due primarily to the
increased performance bonds issued by our bankers for works tendered
under our government business.