Risk Factors

Major external and internal factors that may have affected the Company’s
operations can be summarized as follows:

Risk from Technological Changes

  Information Technology has developed and changed rapidly and
  continuously. Early 2007,

the trend of information technology comprised of SaaS (Software as a
Service), SOA (Service Oriented Architecture), Wireless (WiFi, WiMax),
Web 2.0, etc. Because the Company is the Total Enterprise Solution and
Service Provider, the Company anticipates the risk in procurement of
hardware and software which is current, meets the change of technology,
and is suitable for the requirements of its customers. Therefore, the
Company arranged to have its personnel study the changes in order to
make them technology experts at all times, including to take
examinations to obtain certificates to meet with current technology.
This will allow the Company to provide appropriate services and to add
value for the customer from the current technology.

Risk from Competition

The Company is a dealer of hardware and software products for major
vendors who continue to increase the number of their resellers in order
to maintain and win more market share. This has resulted in serious
competition among business operators in the same industry and, most
importantly, decreased profit. In order to reduce this risk and
differentiate itself from other dealers, the Company has shifted its
business from being just a hardware and software product dealer to a
Total Enterprise Solution and Service Provider and to adjust the service
provision part to expand continuously in order to differentiate the
company from other dealers. This involves:

-   Enhance product lines to cover customer enterprise-wide requirements
    in each sector to meet current technology.

-   Developing application software and business intelligence software
    to add value consistent with the needs of businesses in Thailand.
    Examples are tax, cheque and payroll system software solutions which
    interface with ERP software, and analytical software which supports
    hotel and hospital management decisions.

-   Providing a comprehensive information technology outsourcing service
    which includes hardware, software and services for those customers
    who do not wish to manage their own information technology.

Risk from Dependency on Human Resources 

Human resources are an essential factor in operating an information
technology business. Professionals with specialized knowledge and
expertise are needed to provide consultancy and develop successful
business in order to meet with the changes in information technology,
which is continuous at all times as stated in Clause 1.1, and the high
competition, as stated in Clause 1.2, which are the important matters
that the Company pays much attention to. Hence, the Company’s policy is
to give priority to personnel management and to provide stable career
paths. It regularly organizes training and seminar to develop its
staff’s skills and potential. In order to maintain good morale and
retain its personnel, the Company has set appropriate remuneration plans
which are competitive with other companies in the same industry. In
addition, it has created a pleasant working environment and appropriate
welfare offerings, as well as fostering good relationships with and
between its employees.

Risk from Dependency on Few Vendors

In its current stage of development, the Company continues to be a
dealer of major vendors of mini-computers, open system computers and
servers. In the future, changes in these vendors’ businesses or sales
policies may have an impact on the Company. The Company realizes this
risk and has therefore expanded its business by seeking hardware
products from other vendors. It has also increased the variety of
hardware products by becoming a dealer of network systems and multimedia
products. In addition to hardware products, the Company is a dealer of
various application software products including information technology
management, database system, application program development, data
back-up and recovery, internet infrastructure, Enterprise Resource
Planning (ERP) and Business Intelligence (BI) software.

For year 2007, the Company had more alliance in the RFID (Radio
Frequency Identification) products, SOA, internet infrastructure,
business intelligence, and others. At present, the Company is a
distributor of hardware and software products for various major vendors
such as IBM, Hewlett-Packard, Cisco Systems, SANYO, Canon, Hitachi,
ORACLE, Microsoft, SAP and Information Builders. This has greatly
reduced its dependency on products from a few vendors.

1.5 Risk from Declining Economy

Because the customers of the Company are private organizations which as
affected from declining economy. Investments in new business in Thailand
were slow down. Some were changed to invest in other countries such or
Vietnam, etc. This reduced the opportunity of the Company to increase
new customers.

Therefore, the Company emphasized on the maintenance of the information
technology systems of the old customers to be in accordance and suitable
with the need of the organization, according to the changes of
technology. In addition, the Company emphasized the cooperation with
foreign organization in order to provide services in development of
specific works such as the computer graphics development, etc.