2.2 Types of Business

  (1) Company’s Profile and its Significant Development

United Securities Public Company Limited was established by “ Sukanin”
Family on 6 July, 1971 under the name of “Silco Company Limited” to
perform securities business with a registered capital of Baht 500,000.

In 1989, the total business was sold to Wongkusolkit group and
Janvatanavit Group and the Company name was changed to “United
Securities Company Limited” . In the year 1991, the company was
designated broker no.38 by SET. Its present head office located at No.
1550, 4-5^(th) Floor, Grand Amarin Tower Building, New Petchburi Road,
Rajthavee, Bangkok 10320, In 1993, The Company had transformed into
Public Company and was renamed accordingly to be United Securities
Public Company Limited.

In 1994, we became a member of the Thai Bond Dealing Center Member
No.49.

In 1995, there was a change in the shareholders’ structure by which the
Town Real Estate Company Limited (presently changed to Town Holding
Co.,Ltd.) had bought up the stake from Morgan Grenfell Asia Holding
Company Limited and Vickers Ballas Holding PTE, Ltd.(Singapore) which
had previously merged with the company in the year 1990.

In 1997, the overall economics were under crisis and we had incurred a
retained loss of Baht 317 million thus required us for financial
restructuring in order to strengthen the shareholder’s equity and to
survive and compete in the securities business. Consequently, as at 30
September 2000, the company had increased its registered capital to be
Baht 371.37 million while the paid up capital was Baht 258.37 million.

In January, 2000, United Advisory Services Company Limited was
established in which the company had held 99.99% shares of the paid up
capital of Baht 10 million and United Advisory Services main business is
to provide Financial Advisory services.

In 2001, the company had issued IPO shares to be sold to the general
public which changed the Company’s Registered Capital to Baht
304,373,570 and all fully paid up with the total shares of 60,874,714
ordinary shares at Baht 5 par value.

Finally on 8 August, 2001, the company was able to list its shares in
the Stock Exchange of Thailand and adopted the abbreviation name as
“US”.

(2) The Company’s Business

The Company’s business was done under securities license to perform 4
types of securities businesses, i.e. Securities Brokerage, Securities
Trading, Investment Advisory and Underwriting business. Up to present,
on 3 January 2002, we have altogether 3 branches - Rangsit, Nakornsawan
and Nakornpathom.

As for the Company’s subsidiary, United Advisory Services Company
Limited (UAS) was set up to undertake Financial Advisory Services
Business.

(3) Income Structure of the Company and its Subsidiary

+----------------------------+------+--------+-----+-----+-----+-----+
| Income                     | Acqu | % of   | 31  |     | 31  |     |
|                            | ired |        | De  |     | De  |     |
|                            |      |        | cem |     | cem |     |
|                            |      |        | ber |     | ber |     |
|                            |      |        | 2   |     | 2   |     |
|                            |      |        | 000 |     | 001 |     |
+----------------------------+------+--------+-----+-----+-----+-----+
|                            | by   | shareh | M   | %   | M   | %   |
|                            |      | olding | ill |     | ill |     |
|                            |      |        | ion |     | ion |     |
|                            |      |        |     |     |     |     |
|                            |      |        | (Ba |     | (Ba |     |
|                            |      |        | ht) |     | ht) |     |
+----------------------------+------+--------+-----+-----+-----+-----+
| 1. Securities Business     | US   | -      |     |     |     |     |
| Income                     |      |        |     |     |     |     |
+----------------------------+------+--------+-----+-----+-----+-----+
| Brokerage Fees             |      |        | 131 | 75  | 49  | 44  |
|                            |      |        | .55 | .58 | .82 | .75 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Fee and Service            |      |        | *33 | 19  | *   | 44  |
|                            |      |        | .76 | .39 | *49 | .38 |
|                            |      |        |     |     | .41 |     |
+----------------------------+------+--------+-----+-----+-----+-----+
| Gain(loss) on Trading in   |      |        | 2   | 1   | -0  | -0  |
| Securities                 |      |        | .20 | .26 | .52 | .47 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Interest & dividend on     |      |        | 6   | 3   | 5   | 5   |
| securities investment      |      |        | .13 | .52 | .81 | .22 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Interest on loan           |      |        | -   | -   | -   | -   |
+----------------------------+------+--------+-----+-----+-----+-----+
| Securities Business Income |      |        | 173 | 99  | 104 | 93  |
|                            |      |        | .65 | .77 | .53 | .88 |
+----------------------------+------+--------+-----+-----+-----+-----+
| 2. Other Income            | US   | -      | 0   | 0   | 6   | 6   |
|                            |      |        | .40 | .23 | .82 | .12 |
+----------------------------+------+--------+-----+-----+-----+-----+
| Total Income               |      |        | 174 | 100 | 111 | 100 |
|                            |      |        | .05 | .00 | .35 | .00 |
+----------------------------+------+--------+-----+-----+-----+-----+

Remark * inclusive of Financial Advisory Fee income from UAS of Baht
20.75 Million

** inclusive of Financial Advisory Fee Income from UAS of Baht 27.23
Million

  (4) The Company Objectives

The Objectives of the Company and its subsidiary are to focus on 3
groups of businesses namely Securities Broker, Investment Banking and
Securities Trading which in 2002 is forecast to have the following
income earning structure:

1. Securities Brokerage Income 40%

2. Securities Investment Banking Income 55%

3. Securities Trading Income 5 %

  As the overall economics and the market situations are fluctuating, in
  order to achieve the set objectives, the company has decided to focus
  the business on the Investment Banking field which is less risky and
  which is well taken care of by our subsidiary company and also have
  the fund reserved for such business. Moreover, we also have the
  qualified personnel team to handle the debt instrument Trading job as
  well. According to the year 2001 performance, the company had earned
  the income from securities brokerage fee of Baht 50 million, from the
  Financial Advisory fee and underwriting fees of Baht 55 million and
  from the securities trading of Baht 5 million. The company is
  emphasizing on providing full function of the securities business, the
  expansion of branches into various provincial areas in order to
  broaden the customer base and to provide extensive training to develop
  employees’ efficiency in order to minimize company’s cost.